S
outh Florida office landlords faced challenging trends in the fourth quarter of last year, particularly outside Miami's Brickell neighborhood and downtown West Palm Beach. Older office buildings sold at discounted prices, while some property owners struggled with foreclosure. According to an Avison Young report, total square footage leased in 2024 dropped across South Florida compared to the previous year.

    In Miami-Dade County, average asking rents rose to $61.49 per square foot, a 7% increase from the same period in 2023. However, the vacancy rate remained relatively unchanged at 15.1%. New construction decreased by 45%, with 964,000 square feet delivered in 2024. Office investment sales reached $878 million, a 23% increase from the previous year.

    In Broward County, average asking rents increased to $40.18 per square foot, while the vacancy rate fell to 14.5%. Total office space leased decreased by 27%, but overall sales volume rose to $259 million, surpassing 2023 by 75%.

    Palm Beach County experienced a softening in the fourth quarter, with average asking rents dipping to $49.08 per square foot and the vacancy rate rising to 14.1%. Total office space leased declined by 16%, and sales volume dropped by 9% year-over-year.

    Notable lease deals included Danish software company Monta moving its North America headquarters into a Miami Wynwood office building, Harrison-based accounting firm PKF O'Connor Davies opening a new Fort Lauderdale office, and wealth management firm Edward Jones signing for 10,000 square feet at the Banyan & Olive mixed-use project in downtown West Palm Beach.