Miami office market booming while others remain stagnant
Miami office market has become one of the most sought after in the country.
Financial and technology companies are turning to the city of Florida, driving up leases and rents.
Miami’s business districts are booming, with companies like Blackstone taking up space in downtown, while Wall Street executives are buying up multimillion-dollar homes in its residential areas.
“Big businesses are moving here and they’re starting to attract other small businesses that want to be around them and serve them,” said Ryan Holtzman, chief executive of Cushman & Wakefield. “We’re seeing a ton of new tech law firms coming to market that before the pandemic they never would have thought of in Miami.”
This has led to offices moving closer to where workers live. For example, Starwood Capital Group recently completed its headquarters in Miami Beach and plans to seek additional office projects in the area.
The pandemic has been a catalyst in bringing knowledge workers and businesses to Miami. Thanks to its annual warm climate, low taxes and wide open spaces, the area has become a place of solace for many.
As a result, tech giants like Microsoft are snapping up offices to accommodate the number of employees who have flocked to the area.
On the other hand, other major office markets such as New York and San Francisco are seeing rising office vacancies. Businesses are embracing remote and hybrid working, leading many to reconsider their office footprint.
Miami-Dade County has about 46 million square feet of office space, compared to 408 million in Manhattan. To meet Miami’s growing demand for space, developers are turning to the city’s more suburban and residential areas.
“The momentum in the Miami office market is extraordinary,” said Stephen Ross, president of real estate developer Related Group. “The major national companies we work with across the country are actively seeking the world-class office product we are known for.”