If your ideal workday involves views of the beach, and not just as your computer background, office space in Miami might be calling your name. The fourth largest urban center in the U.S., companies in the finance, commerce, tourism, arts and entertainment, and international trade sectors shape Miami’s economy. Notable tenants include Bacardi, Burger King, Carnival and Royal Caribbean Cruise Lines, and Espírito Santo Financial Group. Professional and business services also form a significant percentage of commercial real estate tenants in Miami.
Miami’s proximity to the Caribbean and South America heavily influences the city’s culture and economy. Nearly 1500 multinational corporations have headquarters for their Latin American operations in Miami, including Disney, Kraft Foods, FedEx, Yahoo, Oracle, Sony, Visa International, and American Airlines. Additionally, Spanish language media and music has a substantial foothold in Miami, with the headquarters and studios of Telemundo, Sony Music Latin, and Universal Music Latin Entertainment located throughout the city.
Miami’s status as a major port city creates even stronger connections with South America and the Caribbean. PortMiami is the second largest North American port after the Port of South Louisiana in terms of cargo tonnage both imported and exported. Companies that have ties with Latin America will find that leasing office space in Miami supports the continued development of thriving business relationships.
Office Space | Miami Lease Data & Trends
How much does Miami office space cost?
Commercial tenants can expect to pay around $43 per square foot in Miami’s Central Business District compared to $35 per square foot for office space in the suburbs. Suburban Miami is home to two-thirds of the city’s total inventory and has a greater inventory of Class B office buildings. Nearly four hundred thousand square feet of Miami office space is currently under construction in the suburbs, twice the square footage that is being developed in Downtown.
The nearly 9 million square feet of Class A office space in the Miami CBD leases for around $50 per square foot, compared to $32 per square foot for space in Class B buildings. Class A space in the suburbs costs slightly less than $40 per square foot, compared to $29 per square foot for Class B assets.
A significant development is the MiamiCentral mixed-use development project. The completed project will cover 11 acres in Downtown and hold 3 million square feet of office space, apartments, and shops. The first tower, 3 MiamiCentral, is open and home to the offices and station for Brightline, a new high-speed train service that will serve Fort Lauderdale and West Palm Beach.
One of the main trends expected to continue through 2018 and beyond is the exodus of tenants from Class B offices into offices in Class A buildings. Recently, Class A absorption has mirrored negative absorption in Class B assets. With more Class A space under construction, there should be continued competition between landlords, creating a favorable leasing environment, especially in Downtown Miami.
Co-working spaces are increasingly in demand and now account for 3% of Miami’s total office market inventory. Multiple Büro and WeWork buildings are located throughout the city.
Miami Office Space for Rent | Popular Neighborhoods
Downtown Miami already has more than 300 high-rises, and development in the area is not slowing down with nearly 200 thousand square feet of new office space currently under construction. Downtown has the highest vacancy rate of any Miami submarket at 22.2%, and commercial tenants can expect to pay an average of $41.85 per square foot. In addition to being a cultural hub with plenty of tourist attractions, the majority of the city’s government offices, courthouses, and public organizations are clustered in Downtown. Downtown office space also appeals to many companies in the finance, medical, research, and biotechnology sectors. Taxis are a popular alternative to driving in Downtown Miami, and commuters have their pick of various public transit options including the free Metromover.
South of the Miami River and Downtown, office space in the Brickell Avenue submarket is approximately $4 higher per square foot than in Downtown Miami. Brickell Avenue is a major financial district and is known for having the largest concentration of international banks in the U.S. Slightly more expensive than downtown. The neighborhood has a residential feel and is home to the Shops at Mary Brickell Village and Simpson Park. Brickell Station is the neighborhood’s central public transportation hub, and residents have access to five Metromover stations along the Brickell Loop.
Boasting some of the most expensive office space in Miami, Miami Beach is a coastal resort city and a key neighborhood of South Florida’s commercial center. South Beach (or SoBe) is arguably the most popular area of Miami Beach and draws a high population of designers, artists, and photographers. While there’s no Metrorail stop in Miami Beach, the South Beach Local bus line has heavy traffic and connects to many of Miami’s core bus routes. The Airport-Beach Express also provides convenient transportation to and from MIA.
Wynwood is Miami’s arts and design district, filled with trendy art galleries, bars, and restaurants alongside high-rise residential towers. NW 5th Avenue is referred to as the Wynwood Fashion District, where a significant percentage of Miami’s fashion and textiles industry resides. The neighborhood is also emerging as a brewery hub, with Wynwood Brewing Company, Concrete Beach Brewery, and J. Wakefield Brewing located within a few blocks of NW 24th Street. Wynwood is separated from Downtown by the MacArthur Causeway and is served by many Metrobus routes along with a free trolley service.
Just east of Wynwood, Edgewater is one of Miami’s fastest growing communities with a growing reputation for having the live-work-play lifestyle on lock. Part of the neighborhood’s popularity comes from its bay front location and its fusion of local history and urban innovation. Corporate offices in the area include The Kitchen, Moke, Chargello, and VMR Products. Edgewater provides easy access to Miami Beach via the Julia Tuttle and MacArthur Causeways.
Coral Gable is a dynamic financial district, while also maintaining a charming, historical identity as one of the first communities in South Florida. The neighborhood is home to the University of Miami, which provides companies like MoneyGram, Bacardi, Capital Bank Financial, Intelsat, and Fresh Del Monte Produce with a steady stream of highly educated new talent. Over 150 multinational corporates rent office space in Coral Gables, which averages around $37.00 per square foot. Coral Gables has two Metrorail stops and is a quick drive to PortMiami, Downtown, and the Miami and Ft. Lauderdale International Airports.
While Biscayne has the highest rents for Class A product in the greater Miami metro, office space in Biscayne rents for an overall average of $43.00 per square foot. About half of all new suburban construction is being developed in the neighborhood. With a vacancy rate of 16.8%, companies will have a high chance of finding Class B office space in Biscayne to fit their needs. PortMiami is located in Biscayne Bay, which also supports sport and commercial fisheries, environmental education, and water recreation. Biscayne Bay is connected to the rest of Miami by means of the Rickenbacker Causeway.
Companies considering office space in Miami will find the ideal combination of high vacancy and low costs in the Miami Lakes submarket. Office space in Miami Lakes rents for an average of $26.90 per square foot and draws a number of companies in the law, nonprofit, healthcare, insurance, and manufacturing sectors to the area. Noteworthy tenants of Miami Lakes include Mason Vitamins, Primerica, VitalOne Health, and LogistiCare. The town operates two unique transportation services: the free Miami Lakes Moover and the Spin bike-sharing system.
Getting to, From, and Around Miami
Miami is the 8th most walkable large city in the U.S. and the neighborhoods around Downtown are particularly easy to get around by foot. However, the majority of Miami’s residents commute to work by driving. The main highways that serve the area are I-75, I-95, I-395, and U.S. Routes 1, 27, 41, and 441.
Approximately 10% of the working population commutes to work using public transportation operated by Miami-Dade Transit and South Florida Regional Transportation Authority (SFRTA). SFRTA’s commuter rail, Tri-Rail, makes 18 stops between Miami International Airport and West Palm Beach. The rapid transit Metrorail connects the suburbs to the CBD with a stop nearly every mile. Commuters also have access to numerous routes with Metrobus and the free elevated Metromover.
Miami International Airport (MIA) is located just over a 15-minute drive from Downtown Miami and is the largest gateway between the U.S. and Latin America. Additionally, MIA handles more international cargo between the U.S. and Europe, Latin America, and Asia than any other airport in the country. The second commercial airport serving Miami, Fort Lauderdale-Hollywood International Airport, is approximately 30 miles north of MIA.