Miami Market Update: Investor Interest Drives Pipeline Growth

As of September, Miami’s office development pipeline reached 2.9 million square feet, up 6.9 percent month-over-month, according to CommercialEdge data. The under-construction supply represented 4.3 percent of the metro’s total stock, significantly exceeding the the national average of 2.4 percent.

The national under construction pipeline has shrunk over the pandemic, while new starts in 2021 through September reached 36.2 million square feet. In 2019, new construction starts hit 87.2 million square feet. As new supply dries up across U.S. markets and the national office supply pipeline decreased by nearly 0.9 percent through September, Miami has maintained its allure to new investors from across the country.

Between January and September, roughly 485,500 square feet of office space has broken ground in Miami, across a total of five properties. The mostly mixed-use fresh supply is taking shape in the CBD, Miami North, Biscayne Corridor and Coral Gables submarkets.

One of the largest projects to have broken ground this year, Royal Palm Cos.’ the Legacy tower at Miami Worldcenter has been under construction since August. To reach 55 stories, the mixed-use skyscraper will include a 219-key hotel, 310 condominiums, a medical center and a wellness center. Blue Legacy Ventures—a joint partnership between Adventist Health and Legacy Medical Holdings—will occupy the 10-story, 120,000-square-foot medical portion of the property. The project is part of the $2 billion, 27-acre master-planned Miami Worldcenter development in the CBD.

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