Miami Market Update: Office Vacancy Holds Steady

As of August, the Miami office market bore a 14.2 percent vacancy rate, a figure virtually unchanged on a month-over-month basis and up 180 basis points compared to the same period in 2020, according to CommercialEdge data.

The metro continued to outperforme the national average, which reached 15.4 percent in August. Manhattan (10.8 percent) maintained its leading position among gateway markets with the lowest office vacancy, followed by Boston (11.6 percent) and Los Angeles (13.5 percent). Oppositely, San Francisco (15.4 percent), Washington, D.C. (15.8 percent), Seattle (15.7 percent) and Chicago (16.9 percent) reached higher rates than Miami.

Also in August, Schonfeld Strategic Advisors announced plans for the opening of a second headquarters in Miami’s Wynwood district. The new premises will be located at Related Cos.’ 604,110-square-foot Dorsey property, currently under construction. The $22 billion hedge fund joins other high-profile companies that have chosen to plant a flag in the neighborhood, such as Spotify, Live Nation Entertainment Co. and Bank OZK.

Wynwood—part of the Miami North submarket—has been attracting new tenants from inside and outside Florida since its rezoning from industrial to mixed-use. Miami North (10.5 percent) bore the second lowest vacancy rate in the metro, after Biscayne Bay (9.9 percent).

Tech giant Uber signed a 13,000-square-foot commitment at Blackstone’s 3 MiamiCentral building in the CBD. The company will relocate at the beginning of next year from Brickell City Tower, where it has occupied more than 9,300 square feet for the last seven years. Blackstone picked up 2 and 3 MiamiCentral via its EQ Office arm in March 2021, closing one of the biggest deals for the metro this year.

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