The Real Deal Miami

Growth in Miami’s office market “promising:” report

But Marcus & Millichap says 2014 likely to register lower vacancy rates, higher rents
September 03, 2014 03:00PM

Downtown Miami

Downtown Miami

Miami’s office market is looking “promising,” according to Marcus & Millichap’s third quarter market report.

While Miami’s office market is still not back to its pre-recession levels, developers are bringing some 260,000 square feet of office space online in 2014, according to GlobeSt.

Marcus & Millichap is forecasting vacancy rates to drop 190 basis points to 14.8 percent in 2014. In 2013, Miami’s office market dropped just 80 basis points.

The firm also predicts that average rent in Miami-Dade County will grow 2.8 percent to $29.24 per square foot in 2014, compared to last year’s 2.1 percent gain.

“Expansion in predominantly office-using employment sectors is likewise strong, led by professional and business services, and financial services,” M&M reports. “The booming housing market, growing need for healthcare, and foreign in-migration and investment will create office-using jobs in areas such as residential mortgage brokerage, port commerce and international banking.” [GlobeSt]Christopher Cameron