Office Rents In Miami Have Gone Parabolic, Reports Say

Office rents in Miami have been soaring at what appears to be an unprecedented pace, new reports say.

The price increases have been so strong that the developer of the under-construction 830 Brickell office tower is buying out a lease with WeWork that was signed just three years ago.

According to Commercial Observer, developers Oko Group and Cain International “made WeWork whole” for the entire term of its lease, in order to take back the space.

WeWork had signed in 2019 for 146,539 total square feet located on floors 16 through 25. The lease term lasted up to 25 years and included signage rights, according to a lease memorandum filed with the county.

Asking rents at 830 Brickell are now as high as $150 per square feet.

By comparison, top-tier Class A office space in Brickell was at $62 in 2019 – also a record at the time according to Blanca Commercial Real Estate.

Downtown Miami was also the only major urban office market in the country to achieve net-positive absorption in 2021, according to the Miami Downtown Development Authority’s 2021 Office Market Report.

The developers of 830 Brickell announced a lease last week with Sidley Austin, a global law firm headquartered in Chicago, for 60,000 square feet.

The under-construction building is now 70% leased, with completion scheduled for later this year.

 

(photos: Golden Dusk Photography, June 2022)

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Melo is sigma and chad
6 months ago

Good, maybe more of the twin towers proposed next to the government center could be a office tower now.

Anonymous
6 months ago

With better architecture, too.

anonymous
6 months ago

So wework made out pretty well on this.

anonymous
6 months ago

really its the developer that made out. They get rid of a crap company like we work and will make more than double what they got from WeWork. But it is a win win for both parties

Lenny
6 months ago

Maybe.

Miami Winning
6 months ago

Let’s all sing it together- “Miami Winning”

Anonymous
6 months ago

NextMiami please remove this political comment!

Conno Sir
6 months ago

The CBD is prime location for office space

AbyNormal
6 months ago

And those “Former” WeWork floors are already leased…just wait for the headlines in a few weeks…or months. Big news.

anonymous
6 months ago

exactly. Developer wouldnt let them walk away if they didnt have someone better lined up.

Anonymous
6 months ago

It will be a moderate miracle if WeWork is even around 3 years from now.

Anonymous
6 months ago

Part of this price pressure comes from entrepreneurs who are priced out of their residential living space and decide to make do with their office units

Anonymous
6 months ago

What a high quality problem…

Anonymous
6 months ago

We need offices in Overtown, there is already a Earnst & Young

Anonymous
6 months ago

B-but… muh work from home!

Mailman
6 months ago

How about building more office skyscrapers in Downtown Miami? That part of the city really needs office space.

Mmmm
6 months ago

So wouldn’t soaring office rent prices push companies back out to suburbia or away from downtown?

Anonymous
6 months ago

Depends if companies want a prestige address

Anonymous
6 months ago

By that logic Manhattan wouldnt have any offices because nobody would want to pay that much

Anonymous
6 months ago

Hi let me introduce you to a concept known as supply vs demand

Anonymous
6 months ago

I see… thinking is really not part of your foretay is it?

Downtown Vagabond
6 months ago

Downtown has a few historic office buildings that are sitting empty, and could help alleviate the need, ever so slightly.

Question.
6 months ago

No one is going to mention what happens to a parabolic curve after its peaked?

anon
6 months ago

dont undrstand how its “parabolic” tho….

somebody please make it make sense

Aurelius
6 months ago

I beleive the word they meant was exponential.

Melo is sigma and chad
6 months ago

i didnt say that

IHateBrokerBabble
6 months ago

WeWork probably begged them to get out of the lease..

Kenny
6 months ago

Doubtful

Darkline
6 months ago

Amazing to see office buildings rise in a city with a dysfunctional, unusable transit system with tracks in the wrong places.

Duke
6 months ago

A recipe for disaster in a city with zero infrastructure! And everyone is applauding! Fools!! Greedy bastards!!!

Anonymous
6 months ago

Folks in this city are being taken to the cleaners every time they go to the grocery store or gas station and this idjit is worried about some people applauding this project…

smh

Anonymous
6 months ago

The people who work in this tower will have high end apts in Brickell and walk to work – they don’t care about the mover or metrorail

Anonymous
6 months ago

As someone who has worked downtown for the past 20 years, and who had parents working downtown/Brickell in the 70s and 80s, I would be suprised if even 10% will live on Brickell or anywhere downtown. Most will buy houses in the suburbs.

Anom
6 months ago

Thanks for the history lesson but I disagree

popeye
6 months ago

market conditions in other states have nothing to do with “lil hitler”…you chump