Miami continues to show strong trends regarding flight-to-quality as both new-to-market and existing tenants seek new Class A and Trophy product space with focuses in Brickell, Miami Beach, Coral Gables and Wynwood submarkets. That is according to a recent quarterly report from JLL.
The report notes that Miami’s development pipeline remains robust–with some proposed projects stretching out to 2028–offering room for continued growth over the next five years. Many new plans and renderings are concentrated in Brickell and Wynwood, Miami’s most sought-after submarkets, the report says.
According to the report, this quarter, Miami recorded approximately 700,000 square feet of leasing activity, down -30.8% from 12 months prior.
“Though activity slowed relative to last year, this quarterly volume is only slightly less than pre-pandemic averages, signaling a return to normal, rather than a drop in demand,” the report says.
Overall, net absorption was positive this quarter, posting just shy of 60,000 square feet. Miami Beach, Wynwood and Aventura accounted for the bulk of positive absorption.
Unlike other Florida markets, office development remains robust in Miami, the report explains with nearly 220,000 square feet of new space delivered across two buildings – Eighteen Sunset (81% occupied), and 601 Miami in downtown, which remains vacant and available to lease. An additional 2 million square feet remains under construction, with 75% of new product located in Brickell and Wynwood. Miami Beach also remains an area of interest, the report notes, with three projects totaling over 288,000 square feet under development.
Source: GlobeSt.
