Residential Real Estate News
Miami's Brickell Office Market Hits Record $200 Square Foot Rents in 2024
The Brickell area of downtown Miami's office market has seen rental prices soar to new heights due to intense demand from blue-chip companies based in New York, Chicago, Los Angeles and Latin America seeking premium office locations, surpassing the available supply.
Brazilian bank Banco Master has secured the final 26,000 square feet in the prestigious 830 Brickell building for nearly $200 per square foot, according to sources familiar with the transaction. This price is nearly double the city's previous office market record set just two years ago.
The surge in luxury office prices is fueled by the influx of top financial, legal, and tech firms to Florida, drawn by its favorable tax environment. Companies that moved large portions of their workforce to Miami after the pandemic have driven up office rates. Before the pandemic, luxury office space in the Brickell area was priced at $60 per square foot.
The 830 Brickell building, completed in 2023, is considered the only new luxury office tower in Miami's central business district. It has also attracted tenants like Microsoft, hedge fund Citadel, private equity firm Thoma Bravo, insurer Marsh, and law firm Kirkland & Ellis.
Developed by OKO Group and Cain International, the 57-story office tower began leasing in late 2019 at around $60 per square foot. In June 2024, Citadel announced an expansion within the building, occupying six floors, with sources indicating a lease rate of $150 per square foot at that time. Despite ongoing development of several high-end office towers to meet demand, the availability of existing space remains limited, with over 1.8 million square feet currently under construction.
Citadel is also planning its own office development. Last week, the firm released plans for a $1 billion waterfront project in Brickell, which is set to become the new headquarters for Citadel's hedge fund and market-making operations. The development will feature office spaces, retail shops, and a luxury hotel.
While many office markets across the US have struggled with high vacancy rates since the pandemic, Miami has bucked this trend as businesses have relocated south. A source familiar with the tenants at 830 Brickell noted that 90 percent had moved from major markets such as New York or LA.
In January 2022, Miami's office space rental rates made headlines by exceeding $100 per square foot, aligning the city with markets like New York City. The 830 Brickell deal, priced at approximately $190 per square foot, far exceeds the estimated market rate of $105 per square foot.
