Office vacancy rates in Miami-Dade County are hitting highs not seen since the Great Recession, according to a pair of recent market reports.
A June report by the Commercial Industrial Association of South Florida, or CIASF, found that the vacancy rate for Class A office space jumped above 20 percent in the first quarter, a height not seen since the last building boom of 2008-2009 that coincided with the financial crisis. During the same period last year, before the COVID-19 pandemic upended commercial real estate, Miami-Dade’s Class A vacancy rate was 15 percent.
Avision Young’s second-quarter office report, released last week, shows that the overall Miami office market’s direct and subleasing vacancy rate hit 16.9 percent, the highest rate since 2013.
“As was the case with the global financial crisis over a decade ago, the impact of this recession will be felt in South Florida’s office market to some degree for years to come,” the Avision Young report states. “Demand for flexible office space has also been on the rise as tenants remain hesitant to lock themselves into a long-term lease.”
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