Miami Office Market
Annual full-service asking rental rates reached an all-time high of $59.63/SF, reflecting a 0.3% increase from the previous quarter and a 6.0% increase year over year. Miami-Dade County recorded negative net absorption of 109,890 SF in the second quarter of 2025, largely attributable to Bacardi vacating their old space. Vacancy increased by 20 basis points quarter over quarter to 15.0%. The construction pipeline remains resilient at 1.2 MSF, with projects such as The Fifth, 4225 Ponce and The Offices at The Well expected to deliver in the second half of 2025. Although more leases were signed in the second quarter of 2025 compared to the previous quarter, the average deal size declined by 533 SF to 3,115 SF. As a result, total leasing volume fell by 7.6% quarter over quarter to 1.0 MSF.
Miami Industrial Market
The market realized 314,672 SF of positive absorption in the second quarter of 2025, bringing total absorption for the year to 344,460 SF. Although net absorption has been weak since 2024, mainly attributed to muted leasing activity - economic uncertainty and delays in tenant buildouts - demand is gradually rising. Overall rental rates rose by 0.2% quarter over quarter but declined by 0.9% year over year to $15.44/SF. Asking rents are 2.4% below the historic high of $15.82/SF and are expected to remain flat or slow further due to a wave of new supply. Construction deliveries totaled 2.1 MSF in the first half of 2025, with another 3.0 MSF of ongoing and newly-started projects underway that are currently 4.5% pre-leased. Supply continued to outpace demand through the second quarter of 2025, resulting in vacancy climbing to a recent high of 5.6%. Overall vacancy increased by 40 basis points quarter over quarter.
Download Miami Industrial Market Report 2Q25