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After a sluggish 2024, Miami’s office market is showing renewed signs of life, closing out the first quarter of 2025 with a surge in leasing activity and rising rental rates.
According to new data from Cushman & Wakefield, the city recorded more than 580,000 square feet of new leases in the first three months of the year — its strongest quarterly performance since late 2023.
The average asking rent climbed above $63 per square foot, reflecting a 15.6% year-over-year increase. Market experts anticipate continued rent growth as tenant demand builds and pre-leased office space begins to fill throughout the year. Miami’s current office vacancy rate stands at 15.4%, notably lower than the national average of 20.8%, and is forecast to drop closer to 14% in the coming 12 to 18 months.
Additional insight from Blanca Commercial Real Estate paints an even more optimistic picture, placing first-quarter leasing volume at 929,000 square feet — a level not seen since early 2022. The uptick marks a shift from 2024’s slowdown, when just 1.5 million square feet were leased, a 29% drop from the prior year.
Premium submarkets like Wynwood and Miami Beach are leading the charge in rental growth, with Class A office rents ranging from nearly $79 to over $87 per square foot. Demand in Coral Gables and Brickell remains robust, with the renovation and removal of outdated Class B properties further tightening supply.
Coral Gables stood out as a top-performing area, recording nearly 250,000 square feet of new leases. Major moves include City National Bank of Florida’s 145,000-square-foot relocation and a 65,000-square-foot lease by Nicklaus Children’s Hospital at 1 Alhambra Plaza. Coral Gables is increasingly viewed as an attractive alternative to downtown, offering lower rents — averaging around $54 per square foot — and easier commutes for suburban employees.
Despite the overall momentum, the pipeline of new-to-market tenants appears to be slowing. According to Blanca CRE, just under 8% of leasing activity in Q1 came from companies new to the region, slightly below the typical 10–12% share seen by year-end. Still, several major firms are exploring options in the Miami metro, hinting at a possible midyear bump in activity, according to BisNow.
While macroeconomic factors, such as potential tariffs and election-year uncertainty, may continue to affect decision-making across industries, the Miami office market is expected to remain resilient. Analysts suggest the city’s fundamentals — including sustained demand, constrained supply, and continued interest in Class A properties — position it well to weather broader national headwinds.
