Miami-Dade Office Investment Forecast
Fewer Restrictions on Businesses in South Florida Benefit Local Office Market, Attract Large Buyers
Office recovery in Miami ahead of national pace. The metro was among a handful of markets that recorded a vacancy decline in 2021, and more progress is anticipated this year as leasing activity stays healthy. The early reopening of the state following initial lockdowns and persistent business relocations to the area have served as a catalyst for space demand. Blockchain.com, for instance, is moving its headquarters from New York to Miami and plans to hire 300 local staff. Furthermore, the impact of subleases created by the health crisis is significantly lighter than some other markets. Locally, less than 1 percent of inventory is available on a sublease basis, compared to San Francisco, where 5 percent of inventory is being marketed under subleases. Despite the strong demand drivers prevalent in Miami-Dade County, some challenges are present. Approximately 1 million square feet of speculative space is under construction, matching the level of sublease space. Nonetheless, the outlook for the office market is brighter than most metros.