Miami Office Sales Volume Declines, Pipeline Holds Steady

The Miami office market reflected both strengths and weaknesses at the end of August, according to Yardi Matrix. The metro ranked fifth among gateway markets for the size of its construction pipeline, however, investor activity slowed sharply, with only $387.2 million in office sales recorded year-to-date through August—a notable decrease from the previous year.

Miami’s vacancy rate remained among the lowest of the nation’s gateway markets, offering a rare bright spot at a time when most U.S. metros are grappling with elevated rates.

Miami keeps one of the lowest vacancies in the U.S.

Miami’s office vacancy rate reached 14.3 percent at the end of August—significantly below the 18.7 percent national average. The metro’s rate was the second lowest in the nation, following Manhattan’s 13.6 percent. In contrast, several gateway markets faced much higher rates—Seattle and San Francisco posted 27.2 percent and 25.9 percent, respectively—while Boston also maintained a comparatively lower rate of 16 percent.

Notable recent leases in Miami include Stearns Weaver Miller’s 96,762-square-foot renewal at Museum Tower, a 266,697-square-foot building owned by Mana Properties. The law firm is the largest tenant at the downtown property.

Another deal was Amazon’s 75,000-square-foot expansion at the recently completed Wynwood Plaza. Initially agreeing to lease 50,333 square feet in January—at the time the largest office lease within the Miami submarket—Amazon’s expansion has brought the building to more than 50 percent leased.

Office sales slower in Miami, pointing to a weaker outlook

As of August, Miami investors generated $387.2 million in deals, with 32 office properties involving 2.2 million square feet changing ownership—representing a 17.9 percent decrease year-over-year.

Miami’s investment activity slowed notably compared to last year’s numbers, when the metro emerged as one of the top markets for office sales. For context, Miami ended 2024 with $1.4 billion in sales—an amount that placed it fourth in the nation—and as the most expensive office metro, with assets trading at $400 per square foot, outpacing Manhattan.

Miami’s slowdown in investment was clear in comparison with its peers. By August, Manhattan topped all gateway markets with $4 billion in sales, while Miami trailed near the bottom—ranking just above Seattle’s $156.4 million.

In terms of prices, office space in metro Miami traded at an average of $244.72 per square foot—above the national average of $181.11 per square foot. The value kept the metro afloat among gateways, with Miami landing in the fourth spot. Manhattan remained the leader with $515.23 per square foot, followed by San Francisco’s $279.43 per square foot. On the opposite end were Seattle ($117.89 per square foot) and Chicago ($59.59 per square foot).

As of August, the biggest sale in the Magic City remained the $76 million acquisition of Columbus Center, a 258,736-square-foot property in Coral Gables, Fla. Affinius Capital sold the mid-rise to Tourmaline Capital Partners, which secured a $71.6 million acquisition loan from Banesco USA.

Another significant deal was Trilogy Real Estate Group’s nearly $42 million purchase of the 64,000-square-foot Class B office building at 2200 Biscayne Blvd.

As of August, Miami’s average listing rates reached $55.77 per square foot—above the national average of $32.63 per square foot and placing it in the third spot among gateway markets. Manhattan led with $67.98 per square foot, with Los Angeles ($41.11 per square foot) following. Meanwhile, Chicago’s average rents of $27.99 per square foot remained the most affordable among gateway markets.

Steady pipeline keeps Miami office space competitive

As of August, Miami’s under-construction pipeline included 2.4 million square feet of competitive space spread across 20 properties. This accounted for 3 percent of its existing stock—above the national average of 0.9 percent.

Among gateway markets, Boston maintained its leading position with 6.5 million square feet, while Manhattan followed with 6.2 million square feet. Miami outperformed San Francisco (2.1 million square feet), Chicago (1.8 million square feet), and Washington, D.C. (826,610 square feet).

The Magic City’s list of the largest projects underway remained unchanged: Royal Caribbean’s 380,000-square-foot headquarters is the top project currently under construction in the metro. Initially expected to come online in 2020, the project’s completion date was pushed to January next year.

The second-largest development is UHealth Medical Center at SoLé Mia, a 370,000-square-foot medical office project in North Miami. Developers LeFrak Organization and Turnberry broke ground in 2023, with the scheduled completion date set for this September.

Year-to-date through August, Miami developers broke ground on only two new projects totaling 125,876 square feet. Completions included 285,700 square feet across two properties, accounting for 0.4 percent of Miami’s stock and marking a 2.5 percent year-over-year drop in office deliveries.

One of the recently delivered properties is Wynwood Plaza, the 291,074-square-foot mid-rise developed by L&L Holding Co. and Oak Row Equities. It came online in April this year and includes 266,000 square feet of office space as part of the developers’ 1 million-square-foot mixed-use campus in the city’s Wynwood Arts District.

Coworking sector in Miami remains stable

As of August, Miami’s coworking sector comprised 3.3 million square feet across 156 locations. The metro outperformed Seattle (3.1 million square feet), while Manhattan continued to lead (12 million square feet), with Chicago (8.6 million square feet) and Los Angeles (7.2 million square feet) following.

The Magic City’s share of flex office space as a percentage of total leasable office space reached 4.2 percent—above the national average of 2.1 percent and the highest among gateway markets.

Regus maintained its leading position as the flex office provider with the largest footprint in Miami, with operations totaling 327,968 square feet. Other top coworking operators include WeWork (268,578 square feet), Spaces (263,927 square feet), ShareMD (245,108 square feet), and Quest Workspaces (221,749 square feet).