Miami Development Update: Mixed-Use Boosts Office Development

As of December, nearly 3.6 million square feet of office space was under construction in Miami, or 5.1 percent of total stock, according to CommercialEdge.

Ongoing in-migration, heightened by the pandemic, has boosted investments and relocations in the metro. The office pipeline has increased significantly since late 2020, when it bottomed out at just 1.9 million square feet. The Magic City and Boston are the top performing gateway markets for under construction plus planned stock, with Miami reaching 10.0 percent at the end of 2021, up 130 basis points year-over-year.

On a national level, office development has been slowing down, with a nearly 5 percent drop year-over-year. New development is still concentrated in urban and CBD markets, but planned stock indicates a shift toward suburban areas. At the beginning of 2020, some 35 percent of the national office stock was situated in the suburbs and that number jumped to 48 percent by the end of 2021.

Last year, the office components of Miami’s mixed-use developments represented the bulk of the metro’s under-construction stock, along with the 640,000-square-foot 830 Brickell, as well as various small to mid-size creative office projects. Several high-potential development sites, zoned for millions of square feet of mixed-use space, also changed hands during 2021.

Completions and new stock

Strata Wynwood, the metro’s largest mixed-use property under construction in 2021, came online in October. CIM Group is the developer behind of the 566,000-square-foot, two-tower property that encompasses 60,000 square feet of Class A office space and 257 residential units.

Other notable office completions during 2021 included Related Group’s 109,000-square-foot 2850 Tigertail in Coconut Grove and The Gateway at Wynwood, a 220,000-square-foot office building developed by R&B Realty Group.

Last year, 1 Southside Park—the single largest rental project in downtown Miami—also broke ground. JDS Development Group is behind the megaproject that is planned to reach 64 stories and include two joint towers. Plans call for more than 1,100 apartments, 200,000 square feet of office space, retail and a 189-key Barry Sternlicht Treehouse Hotel.

In November, the 10-acre, $500 million Transit Village mixed-use project in Palm Beach, Fla. received financing. Developed by a joint venture of Related Group, BH Group and Globe Invest Ltd., the property is set to feature 1.5 million square feet of flexible zoning uses, including some 300,000 square feet of office space.

CommercialEdge covers 8M+ property records in the United States. View the latest CommercialEdge national monthly office report here.