United States: Miami office market - H1 2026
The Miami office market remained healthy during the first half of 2026, although the gap between top-tier and commodity office space continued to shape market performance.
Labor Market Cools
ongoing economic uncertainty and higher borrowing costs, office demand has remained relatively steady. The market recorded approximately 160,000 SF of positive net absorption during the first half of the year, suggesting that tenant expansions and relocations continue to support occupancy despite slower hiring.
Miami Office Maintains Strong Performance
The Miami office market remained healthy during the first half of 2026, although the gap between top-tier and commodity office space continued to shape market performance. The direct vacancy rate declined slightly to 11.4% as tenants continued to favor new, well located Class A buildings. Average asking rents rose 4.0% year-over-year to $53.87 per square foot, while prime asking rents held steady at $89.69 PSF, highlighting the continued pricing power of Miami's top office assets. Investor confidence also remained strong, with average and prime office cap rates compressing to 6.7% and 6.5% respectively, as buyers continued to target well-positioned properties with stable fundamentals.
Investment Sales Pick Up
Investment activity strengthened during the first half of 2026, with total commercial real estate sales reaching $5.67 billion, surpassing the $4.83 billion recorded during all of 2025. Office sales totaled $1.30 billion, remaining relatively unchanged from last year but below the $1.76 billion recorded in 2024 as investors continued to be selective in the office sector. Most of the increase in transaction volume came from industrial, retail, and hotel properties, which accounted for $4.37 billion in sales. Even with office investment activity below pre-February 2023 levels, modest cap rate compression suggests investors remain confident in well-located, high-quality office assets across the Miami market.