Marcus & Millichap

Miami Office Investment Forecast

Miami-Dade County, 2017 Outlook

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Elevated Demand For Miami Office Space Presents Investors With Strong Revenue Growth

Market vacancy to compress as healthy job gains foster rising office space absorption. Vigorous leasing momentum and a scarcity of premium space pushed annual rent growth above 7 percent last year, the greatest increase since 2008. Combined with a healthy local labor market led by hiring in traditional office-using sectors — professional and business services and financial activities — these factors place the Miami office sector on firm footing going into 2017. Rising tenant demand will bode well for the influx of office space coming online this year, the highest level of completions since 2011. The majority of new projects are rising in the suburbs, particularly in the Miami Airport and Aventura submarket. Solid revenue growth in areas like Aventura, Coconut Grove and Miami Beach submarkets, characterized by single-digit vacancy and robust rent gains, supports the increase in the metro average asking rental rate for another year.

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