South Florida’s tech footprint has doubled since 2013: report

Miami /
Apr.April 19, 2016 11:15 AM

Technology firms have doubled their South Florida footprint from 2013 to 2015, according to a new report released by CBRE. 

The tech sector accounted for nearly 848,500 square feet in new office leases in 2015, an increase of more than 83 percent from 2014 and more than double the space leased in 2013.

Last year, 3-D software developer Magic Leap signed a lease for 259,737 square feet at the former Motorola Mobility headquarters. And the deal, which marks the biggest lease for the tech sector, is reportedly valued at $542 million.

Even without Magic Leap, office space absorbed by tech firms would have increased by 27 percent year-over-year and by 42 percent compared to 2013, according to the report.

In July, Uber signed a lease for 9,333 square feet at Brickell City Tower for its new Miami headquarters.

Quinn Eddins, the report’s author and CBRE’s director of research and analysis, told The Real Deal that the region’s ability to attract a multilingual talent pool and the ability to code is a “powerful combination.” As tech companies in the U.S. chose South Florida over other cities, Latin American firms are targeting Miami as their home base.

“The biotech industry is one of the fastest growing in South America,” Eddins said.

The biotech sector is leading growth in tech office leasing, Eddins said, citing an aging and growing population, which creates a growing demand for health care services. Firms leasing space include those that help connect patients with doctors and companies that create and manufacture medicines in South Florida.

Biotech companies absorbed 181,000 square feet of office space in 2015, an increase of nearly 12 times from the 15,400 square feet in 2013, according to the report. In 2013, biotech firms leased 1 percent of all office space across sectors; in 2015, it was 4 percent.

MDLive, a a Sunrise telehealth company in Sunrise, inked a $50 million in 2015. Electronic medical records software firm Modernizing Medicine is another example, making a $38 million investment in Boca Raton.

The proliferation of the shared workspace has also affected the tech footprint in South Florida. WeWork, for example, leased 40,000 square feet at 350 Lincoln Road. The co-working giant will also open in downtown Miami. Pipeline and Büro, other shared office companies, have also expanded in South Florida. Shared office spaces cater to startups and creative-oriented firms.

Airbnb, for example, is a member of Büro’s Midtown Miami outpost.

A trend to watch is technology companies increasing the amount of space they sublet, as well as fewer new entrants to the market, Eddins said. Unless there’s a chilling in the U.S. tech industry, “I don’t think you’ll see a downsize in footprint,” he told TRD.


Related Articles

arrow_forward_ios
Clockwise from top: Kenneth, Robert and Bradley Fishel with Aventura Corporate Center (Getty)
Renaissance Properties sells Aventura office complex for $140M
Renaissance Properties sells Aventura office complex for $140M
Grover Corlew principal Mark Corlew with Bank of America Tower in Boca Raton (Grover Corlew)
Grover Corlew buys Bank of America Tower in Boca Raton for $45M
Grover Corlew buys Bank of America Tower in Boca Raton for $45M
Landlords keep raising office space rents despite a grim outlook for vacancy rates (Getty)
Miami office vacancy rates reach Great Recession levels
Miami office vacancy rates reach Great Recession levels
CP Group Managing Partner Angelo Bianco with One Town Center (CP Group)
Singaporean REIT pays $100M for One Town Center office building in Boca Raton
Singaporean REIT pays $100M for One Town Center office building in Boca Raton
Lease roundup: Apparel company inks 142K sf lease in Miami Gardens & more
Lease roundup: Apparel company inks 142K sf lease in Miami Gardens & more
Lease roundup: Apparel company inks 142K sf lease in Miami Gardens & more
5900 Northwest Broken Sound Parkway and Pebb Enterprises President and CEO Ian Weiner (CBRE, Pebb)
Pebb Enterprises buys Boca Raton office building for $15M
Pebb Enterprises buys Boca Raton office building for $15M
The Coral Gables office building (United Dream Real Estate, Getty)
Dental clinic buys distressed Coral Gables office building for $7M
Dental clinic buys distressed Coral Gables office building for $7M
MG3 Group executives Marcelo Saiegh, Gustavo Bogomolni andHernan Leonoff with the Doral building (MG3, CBRE)
MG3 Group buys Doral offices for $96M
MG3 Group buys Doral offices for $96M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...