Miami has transitioned from a primarily tourist town with banking and finance tenants to a “global city” with a large diversification of businesses, including a hub for startups. The arts, culture, culinary, sports and entertainment venues is propelling Miami in becoming a world-class city. The business community has now taken notice and is following suit. The office market continues to get healthier as vacancies continue to drop. Strong demand of space and few deliveries of new buildings in 2016 will dictate rising rents and lower concessions.
The office condo market has resurrected and is gaining significant momentum, mainly as a result of the influence from Latin American buyers and businesses. They are more comfortable than domestic firms in pursuing these opportunities even after the rise of the dollar. Office condos also provide smaller investors with less money to invest in the office arena. Continued increase in sales activity and per-square-foot price increase. The new-to-market investors continue to be prevalent.
Supply is very limited on a percentage basis and several older office buildings have been demolished for larger, mixed-use developments, shrinking the supply.
Little Havana is engulfed in an energetic revitalization and there is a perfect storm brewing. Towards the North, the Health District is mainly medical space, Brickell/Downtown to the East have seen prices sky rocket, limiting entry, while Coral Gables to the West of Little Havana has alienated many consumers because parking comes at a high premium. With Little Havana right in the center of it all, there is an excellent opportunity for visionaries that are willing to take advantage of the new era of rezoning and urban infilling. The demand is there; will it be met is the question.