By Shanna Naseery, Analyst
The office market in the Miami Central Business District (CBD) ended the second quarter of 2018 on solid footing, setting the stage for growth into the second half of the year. Our Q2 “Submarket Snapshots” on Downtown Miami and Brickell Avenue offer more detail on how these markets performed last quarter. Here are some highlights:
- In the CBD, overall vacancy rose by +30 bps to 16.9% due to several new buildings delivering in the first half of the year, and some tenant move outs in Class A assets.
- Class A overall rents fell by -2.4% year-over-year, to $50.74. The decline was due to some tenants taking higher priced product off-market, leaving lower priced spaces to dominate the CBD.
- Cushman & Wakefield anticipates increases in asking rents for Class A/B space, based on strong tenant demand and the addition of new supply options.
- The influx of new space from recent deliveries has pushed vacancy rates up overall, but they are expected to stabilize in the long-term as the added space is absorbed.
- The completion of the MiamiCentral station will help maintain positive momentum in the CBD and benefit other projects throughout the market.
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