NEW-Miami Occupier and Pricing Trends_C&W Q3 2023 RFS
DOWNTOWN MIAMI
DOWNTOWN MIAMI DIRECT VACANCY (%) 2013 - Q3 2023
Percent
30.0%
SUPPLY HIGHLIGHTS Overall vacancy was 21.7% at the close of Q3, a 270-bp decrease YOY. This marks the lowest rate seen in the submarket since Q4 of 2020, as Class A space contributed to a 340-bp drop YOY to 20.3% at the close of Q3. New development is coming from mixed-use projects with notable office components. The completion of the Offices @ 601 at Miami World Center will add a 127,600-sf office component on three floors to Miami’s CBD supply.
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
OFFICE MARKET STATISTICS | Q3 2023
Class A
Class B
Class A
Class B
Average Direct RR PSF Quoted
Total Vacancy %
YTD Net Absorption
YTD Completions
Under Construction
Existing Inventory SF
Direct Vacancy %
Downtown Class A Downtown Class B
DOWNTOWN MIAMI TOTAL NET ABSORPTION, 2013 - Q3 2023
0
127,800
4,514,273
20.0%
20.3%
17,079
$64.94
SF 150,000
0
0
1,937,179
24.7%
24.9%
52,640
$37.98
100,000
Totals
0
0
6,451,452
21.4%
21.7%
69,719
$54.62
50,000
0
DEMAND HIGHLIGHTS The submarket has experienced a strong gentrification push over the past 15 years which has translated into substantial residential growth combined with increased office development and has become a more affordable location for companies wanting a CBD presence. Although supply just outpaced demand during Q3 in Downtown Miami, the submarket posted nearly 70,000 sf of positive net absorption YTD so far in 2023. Over 308,000 sf of new lease deals have taken place YTD Downtown, making it the only submarket to record YOY growth in transaction activity, with an increase by 2.6% from the same time last year. This can be attributed to the 25.7% YOY increase in Class A deals totaling over 271,000 sf. PRICING HIGHLIGHTS Direct rent grew by 7.4% YOY, inching closer to the $55.00 psf FSG mark and remaining an affordable alternative to the rising costs for office space in the Brickell Avenue Submarket. Downtown Miami average rates remained below three key suburban submarkets including Coconut Grove and Miami Beach.
(50,000)
(100,000)
(150,000)
(200,000)
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Class A
Class B
Class A
Class B
DOWNTOWN MIAMI AVERAGE DIRECT RENTAL RATES, 2013 - Q3 2023
Quoted Rate PSF
$0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00
Buildings commanding the highest FSG rents included:
• Southeast Financial Center - $55.00 - $90.00 psf • Wells Fargo Center - $55.00 - $70.00 psf • Citigroup Center - $58.00 - $64.00 psf
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Class A Class B
Class A
Class B
Cushman & Wakefield of Florida, LLC. / 9
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