MIAMI—Brickell's vacancy rate is about 15%. That's down from about 24.6 percent since 2011, according to the latest data from the Miami Downtown Development Authority (DDA). Overall, the CBD posts a 20% vacancy rate, which is down from over 23% at the height of the recession.
The bottom line: Vacancy remains relatively high in the Miami DDA Office Area, it is well off its peak and we have experienced strong positive net absorption during several consecutive quarters.
So, the question is this: What are the aspects about Miami's CBD and office buildings that continue to attract tenants?
“Since becoming active here in 1982, the evolution of Miami's CBD has been intriguing,” Donald Cartwright, senior vice president of JLL, tells GlobeSt.com. “Having personally moved from the suburbs to the Miami CBD, I have a great appreciation for the unique urban 'live, work and play' environment that continues to get better with world-class retail, dining, cultural and recreational venues.”
Steady and growing positive net absorption has fueled a rapid recovery of the office market in the last three years. Although challenges remain, there are still plenty of new market entrants, expansions and relocations to Downtown Miami's office market.
“Combined with the weather and waterfront orientation which the city has always been known for, Miami's appeal continues to shine,” Cartwright says. “However, buildings and amenities alone do not create demand for tenants. There must be a compelling business reason for companies to operate offices here, and Miami's CBD certainly delivers.”
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