Office Investment in Miami
Miami's office market split down the middle. Class A trophy properties in Brickell and downtown trade at sub-6% caps to international money. Everything else sits around 7-8%. Remote work hit commodity space hard, but finance migration from NY and Chicago keeps premium buildings tight. Your OM better address the work-from-home elephant or buyers will assume you don't get it.
Market Context
Cap Rate Range
5.5% - 8.2% depending on class and location. Trophy Brickell assets sub-6%, suburban B/C space pushing 8%+
Current Vacancy
16.5% overall, but bifurcated - Class A downtown 8%, suburban Class B/C hitting 22%
Rent Trend
Class A rents up 4% YoY, Class B/C down 8%. Flight to quality real
Absorption
Negative 450K SF in 2025, first positive quarter in Q4. Still working through pandemic overhang
Price Per Unit Trend
$425/SF for trophy, $180/SF for commodity space. Spread widest it's been in 15 years
Transaction Volume
$1.2B in 2025, up from $800M in 2024. Mostly Class A trades and distressed B/C
Submarket Analysis
Brickell
5.5% - 6.2% capVacancy
7.8%
Avg Rent (1BR)
$52 triple net
Strongest fundamentals. New construction delivering but pre-leased. International buyers active
OM Tip
Show tenant credit quality and parking ratios. Buyers want to see hedge fund/finance tenants
Downtown Miami
6.0% - 7.0% capVacancy
12.4%
Avg Rent (1BR)
$44 triple net
Mixed. Government tenants stable but private sector shedding space. Transit access helps
OM Tip
Address sublease space in trade area. Show which tenants expanded vs contracted
Coral Gables
6.5% - 7.5% capVacancy
14.2%
Avg Rent (1BR)
$38 triple net
Professional services market. Stable but not growing. Parking issues limit upside
OM Tip
Emphasize walkability and restaurant amenities. Buyers care about quality of life factors here
Aventura/North
7.0% - 8.0% capVacancy
19.6%
Avg Rent (1BR)
$32 triple net
Struggling. Suburban office model broken. Need to reposition or convert
OM Tip
Show potential alternative uses. Buyers looking for land value or conversion plays
Airport West
7.5% - 8.5% capVacancy
23.1%
Avg Rent (1BR)
$28 triple net
Value plays only. Logistics/industrial conversion potential in some cases
OM Tip
Focus on basis vs replacement cost. Show any industrial interest in area
Performance by Vintage
0
1
1
9
2
8
3
0
4
s
5
6
b
7
u
8
i
9
l
10
d
11
i
12
n
13
g
14
s
15
16
n
17
e
18
e
19
d
20
21
m
22
a
23
j
24
o
25
r
26
27
c
28
a
29
p
30
i
31
t
32
a
33
l
34
35
u
36
n
37
l
38
e
39
s
40
s
41
42
r
43
e
44
c
45
e
46
n
47
t
48
l
49
y
50
51
r
52
e
53
n
54
o
55
v
56
a
57
t
58
e
59
d
60
.
61
62
S
63
y
64
s
65
t
66
e
67
m
68
s
69
,
70
71
l
72
o
73
b
74
b
75
i
76
e
77
s
78
,
79
80
f
81
l
82
o
83
o
84
r
85
86
p
87
l
88
a
89
t
90
e
91
s
92
93
a
94
l
95
l
96
97
d
98
a
99
t
100
e
101
d
102
.
103
104
1
105
9
106
9
107
0
108
s
109
-
110
2
111
0
112
0
113
0
114
s
115
116
v
117
i
118
n
119
t
120
a
121
g
122
e
123
124
p
125
e
126
r
127
f
128
o
129
r
130
m
131
s
132
133
b
134
e
135
s
136
t
137
138
-
139
140
m
141
o
142
d
143
e
144
r
145
n
146
147
e
148
n
149
o
150
u
151
g
152
h
153
154
b
155
u
156
t
157
158
n
159
o
160
t
161
162
o
163
v
164
e
165
r
166
-
167
b
168
u
169
i
170
l
171
t
172
.
173
174
2
175
0
176
1
177
0
178
s
179
+
180
181
c
182
o
183
n
184
s
185
t
186
r
187
u
188
c
189
t
190
i
191
o
192
n
193
194
m
195
o
196
s
197
t
198
l
199
y
200
201
p
202
r
203
e
204
-
205
l
206
e
207
a
208
s
209
e
210
d
211
212
t
213
o
214
215
q
216
u
217
a
218
l
219
i
220
t
221
y
222
223
t
224
e
225
n
226
a
227
n
228
t
229
s
230
231
b
232
u
233
t
234
235
w
236
a
237
t
238
c
239
h
240
241
f
242
o
243
r
244
245
l
246
e
247
a
248
s
249
e
250
251
r
252
o
253
l
254
l
255
o
256
v
257
e
258
r
259
260
i
261
n
262
263
2
264
0
265
2
266
6
267
-
268
2
269
0
270
2
271
8
272
.
273
274
N
275
e
276
w
277
278
c
279
o
280
n
281
s
282
t
283
r
284
u
285
c
286
t
287
i
288
o
289
n
290
291
p
292
e
293
n
294
c
295
i
296
l
297
s
298
299
o
300
n
301
l
302
y
303
304
f
305
o
306
r
307
308
b
309
u
310
i
311
l
312
d
313
-
314
t
315
o
316
-
317
s
318
u
319
i
320
t
321
322
o
323
r
324
325
t
326
r
327
o
328
p
329
h
330
y
331
332
l
333
o
334
c
335
a
336
t
337
i
338
o
339
n
340
s
341
.
What Your OM Needs to Address
Remote work impact analysis
Show actual utilization data if available. Survey results from major tenants about return-to-office plans
Data to Include
Badge swipe data, parking utilization, tenant headcount changes since 2020
Sublease competition mapping
There's 2.1M SF of sublease space market-wide. Show what's directly competitive within 1-mile radius
Data to Include
Sublease inventory by floor plate size and asking rent. Time on market for comparable space
Tenant improvement obligations
TI allowances up 40% since 2019. Buyers underwriting $50-80/SF for renewals vs $30/SF pre-pandemic
Data to Include
Lease-by-lease TI commitments, timing of renewals, market TI rates by tenant type
Hurricane/insurance considerations
Insurance costs up 60% in three years. Some buyers requiring engineering reports on wind resistance
Data to Include
Recent insurance renewals, deductibles, any wind mitigation improvements completed
Parking ratio and transit access
Parking requirements vary by tenant type. Metromover/Brightline access becoming more important
Data to Include
Current parking ratio, reserved vs open spaces, any shared parking agreements
Credit quality deep dive
Buyers want to see tenant financials, not just D&B ratings. Work-from-home impact by industry
Data to Include
Tenant financial statements if available, rent collection history, expansion/contraction requests
Investment Outlook
Short Term
Bifurcation continues. Class A trades remain active with international buyers. Distressed B/C deals emerging as lenders work out problems. TI costs and sublease competition keep pressure on commodity space through 2026.
Medium Term
Office demand stabilizes around 85% of pre-2020 levels by 2028. Quality assets benefit from obsolescence of older stock. Some suburban conversion to residential or mixed-use accelerates. Cap rates likely compressed for trophy assets, wider for everything else.
Long Term
Miami's finance hub status drives continued Class A demand. Climate risk becomes bigger factor in underwriting. Successful properties will be those that adapted to hybrid work patterns with flexible layouts and amenity focus. Commodity space faces structural headwinds.
Buyer Profile
International investors for trophy assets, opportunistic funds for distressed B/C space. Family offices active in mid-market deals. REITs mostly sitting out except for core-plus Brickell properties. User buyers emerging for owner-occupied plays under $25M.
Marketing a office property in Miami?
DealDraft generates professional offering memorandums with market-specific data and property-type expertise built in.
Create Your OM