South Florida Office Market Update 2025
South Florida Office Market: Class A vs. Class B – Strategies for a Market in Transformation
The office market in South Florida is undergoing a transformation. Work habits have changed, and now the competition is between modern Class A spaces and Class B/C offices that need to be reinvented themselves.
Current Outlook
- Office Space Vacancy Rates: Office vacancy remains around 8–8.5%.
- Class A Office Space: Class A offices are in high demand: modern, efficient, and with amenities.
- Less Office Space: Many tenants are moving from Class B/C to Class A, even if in smaller spaces.
- High Office Vacancy Rate: Class B/C offices present higher vacancy but also opportunities for renovation.
Rents and Costs
- Average Office Rent in Miami: Average asking rent in Miami is around US $61.76/sf for office space.
- Office Space Amenities: Tenants are seeking amenities and flexibility more than large square footage.
Strategies for Owners and Investors
- Upgrade Class B offices with improvements in design, technology, and sustainability.
- Offer flexible leases that align with hybrid work models.
- Invest in spaces with premium locations and efficient transportation access.
Modernize Office Space to Meet Current Demands
The South Florida office market is rewarding quality and innovation. Class A spaces are setting the trend, but those who modernize Class B offices have a great opportunity to capture companies looking for a balance between cost and experience. For more information about current commercial real estate market trends, call Smith Commercial Property Group at 305-359-6119 or simply contact us online.