Miami’s office market has become one of the most highly sought-after in the country.
Both financial and technology companies are setting their sights on the Florida city, causing leases and rent to increase.
Miami’s business districts are seeing a boom, with companies like Blackstone taking up space in Downtown, while Wall Street executives are purchasing multimillion-dollar homes in its residential areas.
“You have the big firms move here and they’re starting to attract other smaller firms that want to be around them and service them,” said Ryan Holtzman, a managing director at Cushman & Wakefield. “We’re seeing a ton of new-to-market tech, law firms coming in, whereas pre-pandemic, they would’ve never thought of Miami.”
This has led offices to expand closer to where workers live. For instance, Starwood Capital Group recently finished its headquarters in Miami Beach and plans to seek additional office projects around the area.
The pandemic was a catalyst in leading knowledge workers and corporations alike to Miami. Thanks to its annual warm weather, low taxes, and wide-open spaces, the region became a place of solace for many.
As a result, tech giants like Microsoft are snatching up office space to accommodate the number of employees that have flocked to the area.
On the flipside, other major office markets such as New York and San Francisco are seeing office vacancies rise. Companies are embracing remote and hybrid work, leading many to reconsider their office footprint.
Miami-Dade County has around 46 million square feet of office space compared to Manhattan’s 408 million. To meet the growing demand for space in Miami, developers are looking towards the city’s more suburban and residential areas.
“The momentum in the Miami office market is extraordinary,” said Stephen Ross, Chairman at real estate developer Related Group. “The large national firms we work with across the country are actively seeking the world-class office product we’re known for delivering.”
