The Move to Miami
A Special Look at South Florida's Fastest Growing Office Real Estate Market
Miami is one of the world’s most special destinations, offering a blend of American and Latin cultures, world-class food and nightlife, and some of the world’s most pristine beaches. The pandemic ignited a surge in office that had been steadily increasing for years, boosted by the city’s comparatively low taxes and a seemingly never-ending influx of new residents looking to live, work, and experience Miami’s one-of-a-kind lifestyle.
While the city’s real estate market has always been strong, the momentum to Miami is outpacing the rebound the office market is experiencing across the country.
The insights below highlight Miami’s office leasing climate, its enduring cultural appeal, its growing real estate market, and provide vital information for those seeking office space in the surrounding area.
Miami Market Overview
There is a growing list of reasons Miami makes for an increasingly attractive locale for companies seeking to relocate their operations.
In 2019, Miami ranked 31st among global cities in business activity, human capital, information exchange, cultural experience, and political engagement – and office users are taking notice.
Citadel recently announced it was moving its Chicago headquarters – with 1,000 employees – to Miami. Other notable tenants who have recently completed new office leases in the Miami market include Microsoft, Starwood Property Trust, Icahn Enterprises, Blackstone, Apollo, CI Financial, AerCap, and Millenium.
A Booming Economy in Miami
The Miami metro area is the largest urban economy in Florida and the 12th largest in the United States, with a GDP of $344.9 billion as of 2017. The city is a major center of commerce and finance and boasts a strong international business community.
In December 2020, Miami’s Mayor Francis X. Suarez responded to a tweet from Delian Asparouhov, Principal of Founder’s Fund, suggesting his company move from Silicon Valley to Miami, asking, “How can I help?”. This fueled the promotion of Miami as an emerging tech hub. Since then, high-profile investors such as Keith Rabois of Founder’s Fund and David Blumberg of Blumberg Capital have moved to Miami, bringing huge stores of venture capital with them.
The Office Leasing Market in Miami
A pandemic-related rise in vacancy rates has not affected asking rates for commercial office space leases in the Miami-Dade area. Average asking lease rates actually increased by 8.9 percent in the first quarter of 2021, according to the Commercial Industrial Association of South Florida. While likely due in part to accelerating demand following the pandemic, there has never been a better time to get back into the office.
As companies and workers increasingly relocate and transition their operations to South Florida and the Miami-Dade area, there has been a corresponding increase in total sales volume, as evidenced by several high-profile transactions. Read the latest updates from CP Group.
Citigroup Center
34-story trophy tower is the second largest Class A office building in the state of Florida
On the corner of Biscayne Boulevard and SE 2nd Street in Downtown Miami, home to some of the most prestigious national and international banks, law firms, and businesses
One Biscayne Tower
A 38-floor Class A office tower in Downtown Miami with panoramic, unobstructed views of Biscayne Bay
View PropertyThe Landing At MIA
Spanning 11 buildings, the Landing is considered Miami's hot spot for the latest workplace technology
View PropertyOne Downtown
31-story office tower, formerly SunTrust International Center, located in the heart of the Miami CBD
View Property