Miami Real Estate Market Reports

Miami Office Market

Annual full-service asking rental rates remained elevated at $57.51/SF, reflecting a 0.5% decrease from the previous quarter’s all-time high and an 8.0% increase year over year. Occupancy was slightly negative, pushing overall vacancy rates to increase by 30 basis points quarter over quarter to 14.9%. Under-construction pipeline increased, with 1.3 MSF still in progress following the year’s largest delivery of 830 Brickell in the third quarter of 2024. Total leasing activity closed the quarter at 987,073 SF, reflecting slower leasing activity due to fewer and smaller deals being completed. Leases signed averaged 3,380 SF per deal, reflecting a 257 SF decrease in average deal size year over year.

Miami Industrial Market

The market realized 244,965 SF of negative absorption in the fourth quarter of 2024. Muted leasing activity as well as delayed buildout times for new tenants are primarily attributed to the temporary pause in positive absorption. Overall rental rates declined by 1.1% quarter over quarter and by 2.3% year over year from the historic high to $15.40/SF. Construction deliveries totaled 407,020 SF in the fourth quarter of 2024 with 3.9 MSF of ongoing and newly-started projects under construction. Supply continued to outpace demand through the fourth quarter of 2024 and, as a result, vacancy has climbed to 4.9%, reflecting an increase of 30 basis points quarter over quarter. Of the space under construction, 10.2% is currently preleased, which indicates that the market is still bullish on speculative construction.