Miami Office Market Defies National Trends With Strong Leasing Activity And Rising Rents

While office markets across much of the United States struggled in 2025, Miami-Dade County posted performance numbers that set it apart from other major metros. The county leased 3.2 million square feet of office space last year, exceeding its five-year average and signaling continued demand despite broader market uncertainty.

Data from Blanca Commercial Real Estate and international firm JLL shows Miami-Dade outperforming national office trends across multiple metrics. Fourth-quarter reports from both firms position the market among the strongest in the country for office space demand and occupancy growth.

Leasing Activity And Rent Growth

Miami-Dade’s 3.2 million square feet of leased office space in 2025 represented an increase from approximately 2.9 million square feet in 2024. Rents rose 4.2% in 2025, according to JLL’s report, reflecting sustained demand for quality office space.

Between 2020 and 2025, average asking rents in Miami-Dade increased more than 50%, according to Blanca’s data. This growth significantly outpaced comparable markets. During the same period, Austin saw rent increases of 17.8%, Dallas 13.2%, and Raleigh 8.1%. Meanwhile, traditional office markets like New York and San Francisco experienced declines, with average asking rents falling 10.2% and 15.3%, respectively.

Tere Blanca, CEO of Blanca Commercial Real Estate, attributed the strong performance to companies relocating to South Florida and local businesses expanding their footprints. She expects the momentum to continue through 2026.

“This year, I suspect we’re going to have another big bump,” Blanca said. “I think ’26 is well-positioned to be a terrific year for Florida and for Southeast Florida, in particular Miami.”

Occupancy Trends Stand Out

Miami-Dade saw an 8.2% increase in office space occupancy as a percentage of total inventory between 2021 and 2025. Nashville followed with a 6.1% increase, while only Raleigh and Austin among tracked metros also posted gains. Dallas, New York, Los Angeles, Washington D.C., Chicago, and San Francisco all recorded decreases in occupancy during the same period, with San Francisco showing a decline exceeding 10%.

The county’s direct vacancy rate fell 3.5% from 2020 to 2025, making Miami-Dade the only market on Blanca’s comparison list to see a decline in vacancies. Direct vacancies represent unoccupied spaces that landlords are actively marketing. Dallas, the closest market behind Miami, still saw vacancies increase by approximately 5%, while San Francisco’s direct vacancies rose 16.4%.

Major Projects And Corporate Migration

Two significant developments expected to begin construction in 2026 will add substantial office inventory to Miami’s market. The Citadel global headquarters and Banco Santander’s proposed Brickell tower together will bring 2.4 million square feet of office space to the area.

Citadel relocated its headquarters from Chicago to Miami in 2022, part of a broader pattern of corporate migration to South Florida. Blanca pointed to Florida’s business-friendly environment as a key attraction for both large corporations and smaller enterprises.

“As an international, global city, we have been standing out in the global landscape as a place that major corporations want to do business,” she said.

However, not all observers share the same optimism about continued migration patterns. Peter Zalewski, a South Florida real estate expert and broker-owner of consulting firm Condo Vultures, expressed skepticism that mass migration to South Florida will continue at pandemic-era levels. He suggested some workers may return to cities like New York and San Francisco as companies mandate in-person work, which could affect Miami-Dade’s commercial real estate trajectory.

Mixed-Use Development Drives Activity

Current development activity in Miami-Dade favors mixed-use projects that combine office space with retail and residential components. Blanca called these developments the “darlings” of today’s development world, noting that most new office space in Miami is being developed within mixed-use projects rather than single-use office towers.

Both the Citadel and Santander projects exemplify this trend. Citadel’s development will include a hotel and amenities such as a fitness center, spa, and restaurants alongside office space. Santander’s proposed tower will feature both office and retail components.

Mixed-use buildings in desirable neighborhoods like Brickell and Wynwood that offer high-end amenities provide companies with tools to attract employees back to physical offices. These features give workers “a reason to be at the office,” Blanca noted, addressing one of the key challenges facing office markets nationwide as hybrid work patterns persist.

Implications For Florida Real Estate Investors

Miami-Dade’s office market performance presents opportunities and considerations for property investors and developers. The data suggests demand fundamentals remain stronger in South Florida than in many competing markets, supported by population growth, corporate relocations, and a favorable business climate.

However, investors should monitor several factors that could influence future performance, including remote work trends, construction pipeline absorption, and whether corporate migration patterns continue at recent levels. The mixed-use emphasis in new development also reflects changing tenant preferences that may affect older, single-use office properties differently than newer, amenity-rich spaces.

Need strategic guidance on commercial real estate investments in Florida’s changing office market? Our advisors help investors assess market opportunities, structure transactions, and plan for long-term performance. Contact the James Moore Real Estate team today.

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