Miami Real Estate Market Reports

Miami Office Market

Annual full-service asking rental rates reached an all-time high of $59.52/SF, reflecting a 2.3% increase from the previous quarter and a 9.8% increase year over year. Occupancy was positive in the first quarter, but the delivery of Wynwood Plaza attributed to pushing overall vacancy rates to increase by 30 basis points quarter over quarter to 14.8%. Under-construction pipeline decreased, with 1.1 MSF still in progress with projects such as The Fifth, 4225 Ponce, and The Offices at The Well expected to deliver later this year. Total leasing activity closed the quarter at 1.2 MSF, reflecting rebounding leasing activity due to fewer but larger deals being completed. Leases signed averaged 4,017 SF per deal, reflecting a 1,537 SF increase in average deal size year over year.

Miami Industrial Market

The market realized 95,416 SF of positive absorption in the first quarter of 2025. Muted leasing activity, tariff uncertainty, and delayed buildout times for new tenants are primarily attributed to the reduced, but improving, level of positive absorption. Overall rental rates declined by 0.8% quarter over quarter and by 2.2% year over year to $15.32/SF. Construction deliveries totaled 899,712 SF in the first quarter of 2025 with 3.0 MSF of ongoing and newly-started projects under construction. Supply continued to outpace demand through the first quarter of 2025 and, as a result, vacancy has climbed to 5.1%, reflecting an increase of 30 basis points quarter over quarter. Of the space under construction, 10.6% is currently preleased, which indicates that the market is still bullish on speculative construction.