Miami’s Office Spaces Market Improves Thanks to a Thriving Real Estate Market
The office space real estate market in Miami often gets overshadowed by the many luxury properties on the residential side. Miami-Dade leased 40% more office space in the first quarter of 2017 compared to the first quarter of 2016. The average asking price per square foot across the county was $36.99, which is up from $31.60 in Q1 of 2012.
In addition, South Florida has seen about 500,000 new residents come to the area over the past five years. Growth is expected to continue through 2020, as well.
Brickell Most Expensive Office Real Estate
Cushman & Wakefield released a new study showing Brickell’s financial district as one of the most expensive markets in the entire United States. It ranked 10th after hitting prices of just over $50 per square foot for leased office space.
New Developments Coming Soon
With the strong local economy and many new residents coming to South Florida, it may be time for new office space development. It has been about 10 years since any real developments in office spaces have been created. Both Brickell and the downtown area remain the centers of business, but the office market and high prices of these areas are pushing workplaces outside the core. Coconut Grove is a great example with three new office building developments announced recently.
Healthy Job Market Driving Growth
With the job market in Miami growing and the population increasing, the office space has to increase, too. It’s an inevitable side effect with a dropping unemployment rate and many companies moving to or expanding into the South Florida area.
Banco de Brasil Americas announced a new lease for a 17,000-square foot space at 1221 Brickell Avenue, while others have revealed plans for boutique office buildings in Coconut Grove and other areas. Even the University of St. Augustine got involved by singing a lease in April to house its South Florida campus in the Annex Building of the Douglas Entrance Office Park in Coral Gables. The space measures over 53,000 square feet.
Raymond James Financial will also be leasing a total of 27,116 square feet at the BAC Collonade Office Tower and Cosentino North America rented more than 23,000 square feet at 355 Alhambra.
Aventura, a very Tight Office Market
Aventura has two new developments and it’s known as one of the tightest office-space markets in the United States. Integra Real Estate is developing Aventura Parksquare, while Florida Easy Cost Realty is developing Canal Park Office. Between the two, another 200,000 square feet will be added. Aventura Parksquare is already sold out, while Canal Park Office will open in 2018.