- Miami-Dade office availability dropped 1.2 percentage points year over year to 14.6%, while average asking rents rose 8.4% to $68.50 per square foot.
- Airport West drew 28% of activity and Brickell 25.2%, a split that reflects a bifurcated market, with Brickell and Coconut Grove asking more than $90 per square foot.
- Leasing slowed to 1.1 million square feet from about 1.3 million, and only about a dozen options above 50,000 square feet could limit large tenant growth.
Miami-Dade County’s office market remains strong, with availability falling and rents rising, according to a new Savills report cited by Commercial Observer.
Availability dropped to 14.6%, down 1.2 percentage points over the past year, while asking rents rose 8.4% to an average of $68.50 per square foot per year.
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A Split Market
Activity divided between the affordable Airport West submarket, which accounted for 28%, and Brickell, Miami’s financial district, at 25.2%. The split reflects a bifurcated market since the pandemic, as companies either relocated to Miami or expanded there.
That demand pushed rents above $90 per square foot in Coconut Grove and Brickell. The pressure has pushed some longtime tenants out to cheaper suburban space.
Expansions in Brickell
Google added 10,000 square feet at 1450 Brickell Avenue, bringing its footprint there to 45,000 square feet. Spain’s Banco Sabadell renewed its nearly 50,000-square-foot office at 1111 Brickell.
Warning Signs in the Data
Leasing activity slowed to 1.1 million square feet in Q3 from about 1.3 million in the prior quarter. Savills also flagged a thin supply of large floor plates, with only a dozen options on the market above 50,000 square feet.
That scarcity could hamper economic growth and discourage companies from setting up a large presence.
Why It Matters
Rising rents and falling availability give landlords leverage, especially in prime submarkets. The lack of large blocks, though, means a tenant seeking 50,000 square feet or more has few choices today.
What’s Next
Two more office towers are rising in Brickell, one for Santander Bank and one backed by Ken Griffin. Neither is likely to finish before 2029, so large-tenant supply stays tight in the near term.
