Miami Office Market
Annual full-service asking rental rates increased to a historical high of $53.64/SF, a 9.9% increase year over year. Occupancy remained positive, pushing overall vacancy rates to decrease by 20 basis points year over year, to 14.2%. Under-construction pipeline increases, with 1.9 MSF in progress. Total leasing activity closed the quarter at 1.0 MSF, reflecting slower leasing activity due to fewer deals being done. Leases signed averaged 2,903 SF per deal, a decline in average deal size by 22.0% quarter over quarter and by 20.5% year over year.
Miami Industrial Market
The market realized 510,089 SF of positive absorption in the first quarter of 2024. Overall rental rates grew 11.6% year-over-year to $15.22/SF and remained only 2.4% lower than the historical high set in the prior quarter. Construction deliveries rose in the first quarter of 2024 with 1.4 MSF delivered as the pipeline receded to 5.4 MSF under construction. Supply outpaced demand to kick off 2024 and, as a result, vacancy has climbed slightly to 2.9%, reflecting an increase of 40 bps quarter over quarter. Of the space under construction, 23.6% is currently preleased.
Download Miami Industrial Market Report 1Q24