02/10/2021
Miami's Office Market Continues To Improve
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Net absorption, the difference between move-ins and move-outs, was positive in the Miami office market in the fourth quarter following a rebound of leasing activity in prior months. But leasing volume has since fallen again and year-over-year net absorption remains negative in the market.
Supply additions have been minimal in the past two years but are picking up. But even with about 3 million square feet of new office space slated to deliver in the next two years, vacancies are expected to remain below national averages, as they have been in Miami for more than six years.
Rent growth is positive in the market, even as office rents fall at the national level. Miami's annual gains of more than 1% remain some of the highest among the nation’s largest office markets.
The frequency of large office sales remains low, and less than $1 billion was invested in Miami’s office market in 2020 for the first time in eight years. The July sale of Two & Three Brickell City Centre for $163 million was one of just five deals topping $20 million last year, while 13 such deals closed in 2019.
Net absorption, the difference between move-ins and move-outs, was positive in the Miami office market in the fourth quarter following a rebound of leasing activity in prior months. But leasing volume has since fallen again and year-over-year net absorption remains negative in the market.