The office market in Miami is expanding, according to real estate experts. Glenn Gregory, Jones Lang LaSalle executive vice president, said he predicts that the pressure of densification will produce a tighter market over time. Class A properties comprised 84 percent of new occupancy gains in 2013, he said.
“Following last year’s trend, positive absorption within the class A sector remained nearly evenly divided between the CBD and suburbs,” Gregory told GlobeSt. “In an enduring trend, tenants remain focused on occupancy efficiencies, with current users taking less or comparable space.”
Landlords in Downtown Miami, Brickell and Coral Gables will continue to charge higher rents, said Steven Hurwitz of Continental Real Estate Companies.
“Sustained organic expansion and new companies entering the market, combined with an overall lack of new product coming online this year, should continue to put downward pressure on office market vacancy,” Tere Blanca of Blanca Commercial Real Estate, told GlobeSt. “Two years from now, companies with large office space requirements who want to enter the market or expand here will likely have trouble finding contiguous space that suits their needs. Therefore companies should be strategic about their real estate needs and plan in anticipation of a tightening office market.”