In Downtown Miami, condo and retail space has seen record activity, but a new independent study commissioned by the Miami Downtown Development Authority (DDA) reports that office towers are the hottest asset class in the area. Nearly 450,000 square feet of office space has been absorbed in the past two years.
Multinational companies have used Miami as their base to enter the US market and established area businesses are expanding. This has fueled low vacancy rates, and created a high barrier to entry with rising office rents.
Due in large part to the increased demand in the area, new investment and developer activity is entering the market. A large portion of the land downtown is under construction or planned to be developed. 385,000 square feet of office space is expected to be completed this year. And developable parcels of land are hard to come by. With current trends forecasted to hold, and more jobs expected to come to the area, the DDA reports that Downtown Miami could absorb 200,000 additional square feet of new office space every few years.
“The Downtown Miami area is an example of the trends we are seeing throughout the county. The strong market is limiting leverage for clients to relocate”, says Keith Darby, President of Rise Realty. To read more about these trends and how they affect the Miami-Dade CRE and Industrial market, download the Rise Realty market report.