United States: Miami office market - 2025
Still below levels seen in many major U.S. office markets. Rental performance diverged across the market: prime office rents rose to $89.69 PSF, setting another record high, while average office rents declined to $51.80 in 2025.
Demand Positive But Slowing
Miami’s office market posted modestly positive demand in 2025, with net absorption of 0.2 MSF, reflecting a deceleration from 2024's stronger 0.9 MSF annual total. Demand for higher quality space has remained steady despite overall demand seeing a slowdown. Employment services grew by 1.3%, indicating slower but still positive job growth that supported tenant demand across the market.
Miami Office Market Sees Divergence: Prime Rents Surge, Averages Decline
Direct vacancy in Miami ended 2025 at 11.6%, an increase from the prior year but still below levels seen in many major U.S. office markets. Rental performance diverged across the market: prime office rents rose to $89.69 PSF, setting another record high, while average office rents declined to $51.80 in 2025. This divergence reflects continued pricing power concentrated in top-tier assets, while broader market rents faced pressure amid elevated vacancy and competitive leasing conditions.
Investment Sales Continue Slowdown
Office investment activity in Miami totaled $1.29 billion in 2025, reflecting continued caution among investors amid higher interest rates and tighter capital markets. Average office cap rates moved higher to 7.20%, while prime office cap rates increased to 6.90%, signaling that pricing reset further over the year. Transactions remained focused on well‑leased, institutional‑quality properties, as buyers continued to demand wider yields to offset leasing and refinancing risk. High-volume deals are expected to remain limited along with property value growth due to higher financing costs and office-using jobs seeing a slowdown.