In South Florida, developers are actively buying up existing office space that is no longer relevant to large employers in the region. Office spaces are being planned or are already being turned into elite residential premises.
The renovation of office buildings is in stark contrast to the trend that has defined the South Florida market over the past three years. As Northeast and West Coast companies have expanded or relocated entirely to Florida, the region has gained a reputation as a "haven for office real estate" compared to the rest of the country, which continues to struggle with rising vacancy rates in the commercial sector. However, longtime South Florida companies are no longer immune to the growing popularity of remote work, prompting many to scale back their presence, according to industry insiders.
For example, in Fort Lauderdale, it is planned to build a 7-storey building with 312 apartments. It will take the place of an office building. Lots of the existing office spaces will also be converted into residential real estate in the near future.