Miami retains one of the country’s lowest office vacancy rates — although, like the national trend, its rate has risen steadily in recent years: As of January 2025, CommercialEdge reported that Miami’s vacancy rate was at 15.6%, up 320 basis points (bps) from last year, but still lower than many other major office markets, including fellow Southern market Austin, Texas, which saw an increase of 580 bps throughout the same period. Still, while Miami’s rate remains relatively low today, it would historically have ranked among the highest in the country at the start of this decade.

Notably, high demand for office space in Miami in recent years can be linked to wider factors, such as strong population and job growth. For example, in 2023, Miami led all major U.S. office markets with 4.4% employment growth in office-using sectors, like tech and professional services. However, in 2024, momentum diverged: Business services posted modest year-over-year gains, while the financial sector saw a contraction in a reversal from 2023, when both categories expanded.

At the same time, a rising vacancy rate has coincided with rent growth. During the last year, asking rents rose by 18.1% to hit $56.91 per square foot. That places Miami third for pricing among major markets, behind only San Francisco and Manhattan, where rents actually fell 3.6%. Even so, rent growth in Miami far outpaces the national average of 5.8% growth in 2024.

Despite this strong pricing performance, leasing activity has shown signs of deceleration with new lease signings moderating in recent quarters. Specifically, the cancellation of a proposed super-tall office tower at One Brickell City Centre (attributed to insufficient pre-lease commitments) shows emerging challenges in securing tenant demand. Conversely, prominent developments persist, including Citadel’s new $1 billion headquarters project and Santander Bank’s 41-story tower in Brickell.

Meanwhile, corporate relocations — another pillar of Miami’s office market — are also showing signs of moderation. In fact, CRE Daily reported that Beacon Council recorded 45 companies moving into Miami between 2023 and 2024, down from 57 in 2021-2022. Yet, while higher rents might be making some firms hesitate, earlier this month, a New York tech company relocated its headquarters to Miami’s Brickell district, leasing an entire skyscraper floor.

Looking ahead, Miami’s office pipeline remains solid, if not conservative, with 1.7 million square feet under construction — equivalent to 2.3% of existing inventory. With that, it ranks as the fifth-largest active pipeline in the Southern U.S. (10th nationally), behind Austin, Texas; Dallas; Nashville, Tenn.; and Houston. In addition, another 9.6% of Miami’s current office inventory is in the planning stages.

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