WRE News: South Florida Office Rents Surge Key Markets Despite High Vacancy Rates

Miami, FL – July 20, 2024 – South Florida’s office space market is heating up with rising rents and high demand in key neighborhoods.

In the second quarter, South Florida saw a median rent increase for office spaces despite vacancy rates remaining above 10 percent, as reported by JLL. The surge in demand was particularly noticeable in Brickell and downtown West Palm Beach, driven by new, high-end buildings attracting out-of-state corporate tenants.

Notably, billionaire Stephen Ross’ new firm, Related Ross, now controls a significant portion of office properties in downtown West Palm Beach, including the upcoming One Flagler tower, which boasts rents between $120 and $140 per square foot and is already 75 percent leased.

Miami-Dade County experienced a notable rise in median asking rents to $63.49 per square foot, a 12.7 percent increase from the previous year, with a slight drop in vacancy rates to 15.8 percent. Significant developments include the 830 Brickell skyscraper, which secured full pre-leasing from Ken Griffin’s Citadel.

Broward County, while trailing in demand, also saw rental increases and notable tenant signings such as Jazwares’ new lease in Plantation. Palm Beach County’s rents rose to $55.18 per square foot despite an increase in overall vacancy rates, with high demand persisting in downtown West Palm Beach, particularly for premium properties like One Flagler and 360 Rosemary.