Miami Office Market Poised for Continued Growth in Q1 2025

Miami’s office market demonstrated remarkable resilience in Q4 2024, weathering its first slowdown since the pandemic-driven boom earlier this year. Recent data from Avison Young highlights a stabilizing market with robust sales, steady leasing activity, and notable office attendance levels.

Key Highlights from Q4 2024:

1. Sales Volume Surge:
   Miami saw a 29% year-over-year increase in sales volume, reaching an impressive $878 million, signaling sustained investor confidence.

2. Rising Rents:
   Average asking rents climbed by 6.6% year-over-year, now at $61.49 per square foot (FS), driven by ongoing demand for high-quality office spaces.

3. Steady Leasing Activity:
   Leasing activity remained stable between Q3 and Q4, with over 792,000 square feet leased in the final quarter.

4. High Office Attendance:
   Miami’s office attendance exceeded the national average, with foot traffic reaching 77% of 2019 levels, compared to the national average of 60.8%, according to Avison Young’s Office Busyness Index.

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Top 5 New Leases in Q4 2024

Miami’s robust leasing activity in Q4 was highlighted by several notable deals. Listed here were the top five new leases, ranked by square footage, according to CoStar:

Property Name	Address	SF Leased
Doral Concourse	8400 NW 36th St	50,647
429 Lenox Ave	429 Lenox Ave	43,500
4225 Ponce	4225 Ponce de Leon Blvd	33,180
6505 Waterford Office	6505 Waterford District Dr	23,938
Civic Park Plaza	1469 NW 13th Ter	23,931

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A Market Stabilizing into Its ‘New Normal’

Jason Steele, Avison Young’s Florida Market Intelligence Lead, explained the trends shaping Miami’s office market, “The final quarter of 2024 showed that while Miami’s office market experienced a slight downturn earlier this year compared to the record highs seen in 2021 and 2022, the market is stabilizing into its ‘new normal.’ Tenant demand for quality inventory continues to drive elevated asking rents, and office sales activity has seen a slight uptick compared to last year.”

Looking Ahead

With strong tenant demand, rising rents, and steady leasing activity, Miami’s office market is well-positioned for continued growth in 2025 as companies and new residents continue to flock here.