Miami’s Office Market Sent Mixed Signals in 2025

At the end of 2025, Miami’s office market posted mixed fundamentals, according to the latest Yardi Matrix data.

Office investment fell sharply from 2024’s highs, placing Miami near the bottom among its peers. However, office pricing kept the metro among the most expensive U.S. metros.

The vacancy rate tightened further, ranking the Magic City among the lowest rates nationwide, while the metro kept premium rents. Construction activity remained steady, supported by sizable projects. The metro’s completions and construction starts shifted to a downward trajectory, on par with the sector’s slower pace.

Development pace keeps steady, completions decline

By year-end 2025, Miami developers had 1.9 million square feet of space under construction across 16 properties. Among gateway cities, Miami’s pipeline ranked fifth, while Boston led with 5.4 million square feet.

For competitive space specifically, the Magic City had 1.2 million square feet—accounting for 1.6 percent of its total stock, above the national figure of 0.4 percent. When adding projects in the planning stages to that figure, Miami office space underway accounted for 3.9 percent of inventory, ranking third among the 25 U.S. markets.

Miami’s development activity put it in seventh place. Boston led (4.4 million square feet) and was followed by Dallas (2.3 million square feet). On the opposite end of the list, the gateways with the slowest pipeline were Chicago (571,576 square feet) and Seattle (252,963 square feet).

The top five largest projects underway in the metro totaled 1.1 million square feet. Royal Caribbean’s new headquarters remained the largest development at 380,000 square feet. It has been underway since 2024 and is scheduled to reach completion in March this year.

At the end of 2025, developers completed 736,645 square feet across five properties. This accounted for 0.9 percent of the metro’s existing stock and marked a 38.6 percent year-over-year decline in office completions. As of December last year, Yardi Matrix recorded 107,645 square feet in construction starts across three properties in the metro—representing 0.1 percent of Miami’s total inventory.

Low vacancy supports Miami’s rent pricing power

Miami ended last year with a 13.9 percent vacancy rate—below the 18.4 percent national rate and marking a 130-basis-point drop over the previous 12 months. As elevated vacancies finally began to decrease, Miami’s index placed the metro second to Manhattan, as the 13.6 percent rate was the lowest nationwide.

However, increased rates still hit some gateway markets. They included San Francisco (25.2 percent) and Seattle (27.2 percent).

As for rents, Miami’s average full-service equivalent listing rate was $55.39 per square foot. This placed it third among the top metros for premium rents. Manhattan rents led ($68.36 per square foot), while San Francisco ($63.15 per square foot) followed.

Office traffic in the country gained ground in December last year—the busiest in-office December since the pandemic, according to a recent Placer.ai Office Index.

Notable leasing activity in 2025 included Stearns Weaver Miller’s renewal at Museum Tower in downtown Miami. The law firm continued its 96,762-square-foot agreement at the building owned by Mana Properties.

Sales activity slides, pricing remains high

Miami’s office investment activity reached $771 million at the end of 2025. The dollar amount placed the metro at the bottom among gateway cities. For context, the only other gateway metro where sales didn’t hit past the $1 billion mark was Seattle, where investors traded $779 million. Among the top 25 U.S. markets, Miami’s sales activity ranked 18th.

However, the Magic City stood among the top metros for office pricing. At the end of 2025, Miami properties sold at $360 per square foot—well above the $192 national average. The metro’s office prices placed it third. Manhattan led with $498 per square foot, while the Bay Area followed, with $392 per square foot.

Sabadell Financial Center’s $274.4 million sale stood out as Miami’s largest office sale. Ponte Gadea, the majority owner of Zara, acquired the 522,892-square-foot high-rise from KKR, in a deal closed in October 2025.

Despite good performance in sales, investor appetite in the metro declined throughout 2025. For context, Miami recorded $1.4 billion in sales at the end of 2024, ranking fourth in the nation, while assets sold at $400 per square foot—outperforming Manhattan’s average prices at the time.

Miami’s coworking share leads gateways

At the end of 2025, Miami’s coworking sector comprised 3.2 million square feet across 155 locations, according to CoworkingCafe. Among gateway cities, the metro had the smallest flex office inventory. Manhattan led, with 12.4 million square feet, and Chicago followed, with nearly 9 million square feet.

The share of coworking space as percentage of total leasable office space reached 4 percent in Miami—above the 2.2 percent national average and standing out as the biggest value among gateway markets.

The list of the top five largest flex office providers in the Magic City changed since our previous coverage. Spaces led the ranking, with 301,630 square feet. Companies that followed included Regus (289,733 square feet), WeWork (268,578 square feet), Quest Workspaces (221,749 square feet) and Industrious (215,000 square feet).