How Downtown Miami is Repositioning Itself

MIAMI—Downtown Miami and Brickell are hot locations for local and global businesses that want to be where the action is. Even still, Brickell's vacancy rate is about 15% and the CBD's vacancy sits at 20%, according to the Miami Downtown Development Authority (DDA) Office Study.

Danet Linares, vice chairman of Blanca Commercial Real Estate, tells GlobeSt.com the vacancy has led to more new tenants entering the market, which is good news. Nevertheless, Brickell and the CBD are nevertheless being repositioned with future growth in mind.

“The Miami DDA Office Area is currently positioning itself to be a major hub for technology and workspace innovation throughout the southeast US and Latin America,” Linares says. “The fact that the US' first Microsoft Innovation Center will be located in the Miami DDA Office area highlights the importance of Downtown Miami as a catalyst for growth in the tech industry.”

Indeed, Linares rightly points out that many tech companies in Latin America are moving to Miami because they are finding it a lot easier to raise venture capital here rather than Silicon Valley. A fast-growing venture capital market has seen investment jump from $102 million in 2010 to $369 million in 2013, according to VentureSource.

“Downtown Miami is also positioning itself to attract hedge funds and private equity groups from high-tax states, including New York and California,” Linares says. “Companies are moving here because they pay less in taxes and are drawn to our quality of life and connectivity offered by MIA with direct flights to more than 150 cities around the globe. The fact that our office space is cheaper than NYC, is a secondary driver, but is another factor taken into account when deciding to relocate here.”