Demand from new-to-market tenants remained robust, but the largest lease of the quarter was 101,000 sf signed by Kaseya at the Wells Fargo Center. The tech firm, which established its headquarters in Miami in 2018, plans to add 3,400 new jobs over the next three years, making it one of Miami-Dade’s largest employers. Consequently, Downtown accounted for the most leasing activity in the quarter with over 168,000 sf.
- FLIGHT TO QUALITY HELD IN 2023
Premier assets attracted the most activity with 81.9% of all Q1 leases signed in Class A properties. The largest was the Kaseya deal in Downtown for 101 KSF at 333 Avenue of Americas.
- VACANCY FALLS FURTHER
Overall vacancy decreased to 15.8%, down 35 BPS YOY and falling under the 16%-mark for the first time since Q4 2020.
- OFFICE DEVELOPMENT DISCIPLINED
The 1.7 MSF under construction, 872,135 SF is projected to be completed in 2023. 830 Brickell, which is predominantly leased, comprises 73.2% of the 2023 total alone.
- CBD RENTS CLIMB HIGHER
Class A rents in the CBD reached a new historic high in Q1, with an average increase of 17.8% YOY. Rents in Downtown reached $63.73 PSF, while Brickell achieved averages of $85.70 PSF.
- ECONOMIC CONDITIONS SLOW DEMAND
Leasing activity hit 566,328 SF in Q1, a decrease of 36.6% compared to the levels recorded in the previous quarter and down from the 1,006,495 SF leased the same time last year.
