Q1 2023 Office Space Report: Miami-Dade County, FL
Specializes in providing actionable insights into the commercial real estate space for investors, brokers, lessors, and lessees. He covers quarterly market data reports, investment strategies, how-to guides, and top-down perspectives on market movements.
Miami-Dade County is known for its beautiful beaches, vibrant nightlife, and diverse culture. It’s also a major center for finance, commerce, and international trade.
The county is home to a diverse range of major businesses, including Carnival Corporation, Royal Caribbean International, American Airlines, and Burger King.
Unemployment in the county was at 1.8% at the close of Q1 2023.
In Q1 2023, Miami-Dade County’s office space saw positive absorption, a decline in vacancy rates, and an increase in average rents.
General Area Overview & Demographics
Miami-Dade County has a diverse population, with a total estimated population of over 2.7 million people. The population demographics include a mix of races, ethnicities, and cultures, with a majority of the population identifying as Hispanic or Latino.
Miami-Dade County, FL Median Hosuehold Income & Population
Household income in Miami-Dade County varies widely, with a median household income of approximately $52,000. While there are areas with higher incomes, there are also areas with lower incomes, and the county has a poverty rate of around 17%: Many residents in Miami struggle to keep up with rent payments.
Ages in Miami-Dade County are fairly evenly distributed, with a median of around 40 years old. However, there are significant populations of both younger and older residents, with a large number of retirees living in the area.
Higher education is a significant aspect of Miami-Dade County, with a number of colleges and universities located within the area. These institutions include the University of Miami, Florida International University, and Miami Dade College, among others.
There are many major attractions in Miami-Dade County, including South Beach, the Miami Seaquarium, and the Vizcaya Museum and Gardens. Other popular destinations include the Everglades National Park, Zoo Miami, and the Miami Design District.
Miami-Dade County has a tropical monsoon climate, with hot and humid summers and mild winters. Temperatures can reach into the high 80s and low 90s during the summer months, while winter temperatures generally remain in the 60s and 70s. The area also experiences a significant amount of rainfall, particularly during the summer months.
Summary of Miami-Dade County Office Space Performance in Q1 2023
Vacancies for Miami-Dade County office space were at 10.1% in Q1 2023, a significant drop from Q3 2022’s vacancy rate.
The highest vacancy rate was in the Downtown Miami submarket at 19.1%, while the lowest vacancy was in the West Miami submarket at 0.9%.
Total net absorption for Miami-Dade County office space in Q1 2023 was 204,369 square feet, with the highest absorption rate occurring in the Downtown Miami submarket at 83,336 square feet.
What are office space rents like in Miami-Dade County?
The average asking rent for Miami-Dade County office space in Q1 2023 was $51.70 per square foot. Class A average direct asking rent was $58.48 per square foot.
Rent was highest in the Brickell submarket at $83.23 per square foot.
Purchase & Leasing Activity
Sales for Miami-Dade County office space reached $298 million in Q1 2023. Quarter-over-quarter, sales increased 10.5% from Q4 of 2022.
Leasing activity was strong, with over 950,000 square feet leased in Q1 2023.
Notable Office Space Deals in Miami-Dade County in Q1 2023
There were several notable deals for Miami-Dade County office space in Q1 2023:
- Bridge Industrial bought 248,989 square feet of the Flagler Station Building for $42.1 million at $169 per square foot.
- Biscayne Real Estate Holdings, LLC bought 156,446 square feet of the Biscayne Center for $39 million at $249 per square foot.
- Kaseya Corp. leased 101,242 square feet of the Wells Fargo Center.
- Innovation Refunds leased 25,717 square feet of the Wells Fargo Center.
These are select examples among other activity.
New Office Space Development Activity in Miami-Dade County in Q1 2023
New completions for the quarter totaled 134,824 square feet. The Coconut Grove submarket saw the highest number of new deliveries at 48,216 square feet.
Over 4.7 million square feet were added to the county’s pipeline in Q1 2023. The Downtown Miami submarket saw the highest number under construction with 1.2 million square feet.
Market Forecast for Miami-Dade County’s Office Space Market
Vacancies and new constructions are expected to decline throughout the remainder of 2023. Absorption will likely remain stable while rental rates will continue to rise.
Tenant demand is still high, and new deliveries are expected to come on the market.
Takeaways for Office Space Investors
New-to-market tenants continue to move into the county looking to acquire new space. Class A properties are in high demand and are currently performing well in Miami-Dade’s market.
Tenants are currently trending towards more suburban areas thanks to their affordable rental rates. Investors should consider the Brickell and Wynwood submarkets if looking to acquire property.
Do your research, stay diligent, and happy investing.
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MyEListing.com, a free-to-use commercial real estate data and listings platform, maintains one of the largest databases of commercial agents & brokers in the country. Use it for free to find commercial agents & brokers in Miami-Dade County.
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