{"id":1004755431,"date":"2025-05-14T05:06:16","date_gmt":"2025-05-14T13:06:16","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004755431"},"modified":"2025-06-06T06:21:18","modified_gmt":"2025-06-06T14:21:18","slug":"miami-office-prices-remain-elevated-as-development-levels-off","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/miami-office-prices-remain-elevated-as-development-levels-off\/","title":{"rendered":"Miami Office Prices Remain Elevated as Development Levels Off"},"content":{"rendered":"\n

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\"Exterior\n\t\t\t\n\t\t\t\t\n\t\t\t<\/svg>\n\t\t<\/button>
The Columbus Center is a 14-story Class A office building at 1 Alhambra Plaza in Coral Gables, Fla.
Image courtesy of CommercialEdge<\/em><\/figcaption><\/figure><\/div>\n\n\n

Miami’s office sector started off the year with strong key metrics, according to the latest CommercialEdge data. While high vacancy rates have spread across most U.S. markets in recent years, the Magic City recorded the lowest figure among the top 25 markets in the U.S. in the first quarter of 2025.<\/p>\n\n\n\n

Meanwhile, investment activity slowed down significantly when compared to the same period last year, with Miami emerging as the runner-up among markets with high sales prices.<\/p>\n\n\n\n

Development activity stagnated, with the same large projects under construction. Still, the metro’s pipeline was one of the largest among its peers.<\/p>\n\n\n\n

Miami office prices reach highs<\/h2>\n\n\n\n

Investment activity slowed down in the first quarter of the year, the metro’s sales volume totaling $170.3 million\u2014one of the lowest in the country and down from the $207 million recorded during last year\u2019s first quarter<\/a>. Across gateway markets, Manhattan led the rankings with nearly $2 billion, followed by Washington, D.C. ($769 million) and Chicago ($351.3 million). The only metro that Miami surpassed was Seattle, where sales amounted to $91.1 million.<\/p>\n\n\n\n

So far in 2025, one of the biggest sales in metro Miami was the $76 million acquisition of Columbus Center, a 258,736-square-foot property in Coral Gables, Fla. The 1990-built Class A mid-rise was sold by Affinius Capital to Philadelphia-based Tourmaline Capital Partners.<\/p>\n\n\n\n

Another notable deal was Valoro Capital’s $22.7 million purchase of The Meridian Center, a 54,471-square-foot office building in Miami Beach, Fla. Market Street Real Estate Partners sold the six-story property in early January.<\/p>\n\n\n

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\"Exterior\n\t\t\t\n\t\t\t\t\n\t\t\t<\/svg>\n\t\t<\/button>
Located at 1680 Meridian Ave., the 1957-built property known as The Meridian Center changed hands in January.
Image courtesy of CommercialEdge<\/em><\/figcaption><\/figure><\/div>\n\n\n

As of March, office assets changed hands at an average sale price of $287.08 per square foot in Miami\u2014way above the national average of $181.38 per square foot. Miami emerged as the leader in office prices<\/a> during last year and so far it keeps its place among the most expensive gateway markets, occupying the second spot.<\/p>\n\n\n\n

Manhattan recorded the highest prices, as properties sold for at $446.17 per square foot. Other expensive gateway cities were San Francisco ($242.52 per square foot), Washington, D.C. ($228.49 per square foot) and Los Angeles ($228.23 per square foot). Seattle and Chicago, where office properties traded at $91.82 per square foot and $65.87 per square foot, respectively, were at the opposite end of the spectrum.<\/p>\n\n\n\n

A steady pipeline<\/h2>\n\n\n\n

As of March, Miami\u2019s under-construction pipeline included approximately 1.7 million square feet of space, placing it eighth among the top 10 best-performing markets in the U.S. The metro slightly outperformed Manhattan (1.5 million square feet) and Washington, D.C. (1.2 million square feet).<\/p>\n\n\n\n

Across gateway markets, Boston remained the leader in office development, with 6.3 million square feet in its pipeline, while San Francisco followed with 3.1 million square feet. Seattle and Chicago were the only gateway metros that had under-construction inventories below 1 million square feet.<\/p>\n\n\n\n