Although Miami-Dade and Broward counties’ office real estate markets have experienced a downturn over the past year, interest from financial firms could help the industry bounce back.
While both areas experienced a negative net absorption due to tenants not renewing leases, there is a rejuvenated confidence in the market particularly from firms like Blackstone and Goldman Sachs.
The JLL report found that Miami-Dade has seen an uptick in vacancy rates, but growing demand could lead to a boost in occupancy.
Over the last several months, Miami-Dade saw office giants walk back on its occupied space. For instance, WeWork gave back its space at downtown Miami’s Southeast Financial Center, while HSBC cut down its space at the Four Seasons.
However, Blackstone recently took up a 41,000 square foot lease at 2 MiamiCentral, where it is expanding its in-house technology capabilities.
Additionally, H.I.G. Capital expanded to a 22,000 square foot workspace at The Plaza Coral Gables, while also renewing its lease in the Brickell Financial District.
Currently, Miami-Dade’s vacancy rate is at 18%, a 6.4% increase from the previous year. However, the county’s construction is boosting inventory and its sublease availability is actually among the lowest in the country at 2.2%.
Broward County has reported a 16.2% vacancy, but currently has 145,322 square feet of construction in the works.
Additionally, Goldman Sachs has revealed it is seeking a multi-floor office space in downtown Fort Lauderdale.