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Market Report

Miami-Dade Office Investment Forecast

2020 Outlook

Stabilized Properties Attract Investors in Top Tiers; Value-Add Buyers Search for Class C Deals

Development outpaces new demand in the Miami office market. Construction more than quadruples the 2019 level as several projects that broke ground over the past few years top off. Although pre-leasing hovers around the 50 percent threshold, a sizable amount of the uncommitted space has delivery dates well beyond this year. Only one-third of the space in the five largest projects is scheduled for delivery this year, providing developers an extended timeline to fill upcoming space. The market’s largest development, a 57-story skyscraper, will add 650,000 square feet in Brickell in early 2022. While supply is applying upward pressure to vacancy, demand struggles to keep pace. Office-using employment growth dips below the long-term average this year as employers struggle to find qualified workers in a low-unemployment environment while major expansions have been sparse. As a result, smaller leases will chip away at available vacant space, paving the way for a potential reversal in the supply-demand balance during 2021.

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