Relocations and new entrants propel Miami office demand amid economic headwinds
Momentum in Miami’s office market continues to build, now boasting the lowest availability among Savills-tracked U.S. markets: 15.6%. Average asking rents climbed to $63.05 per square foot (psf), up 9.9% year over year and 56.8% over the past five years. Competition remains strongest for Class A and trophy assets in the Central Business District (CBD) submarkets, where scarcity is pushing rates higher, while Class B suburban space lags. As demand has eased from 2022–2023 levels, landlords have widened concessions, increased tenant improvement allowances and extended free rent. For tenants, additional costs should ease, driven by declining TI expenses and this year’s Florida state law eliminating the 2.0% tax on commercial rents.