US financial companies are shifting to the south of the country, which provokes a boom in office space rental in Florida. This trend began to be traced after the pandemic, and today it is even stronger.
So, the newest 55-storey skyscraper 830 Brickell in Miami with offices is still under construction. At the same time, it is already filled with tenants. More than 59,000 m2 of its area is leased at a cost twice the initial estimates of the owners. This became a record in the Miami office real estate market. At the same time, requests for rent at 830 Brickell continue to come from first-class financial and law firms.
In Q1 2023, more space was leased in Miami than was vacated. According to experts, in the Brickell financial district, the requested rent has increased by 24% compared to 2022. At the same time, the amount of available space is less than 10%.
In West Palm Beach, the developing southern area of Wall Street, there is also a minimum number of available rental places, which is a record for the last 13 years. The Florida office market is going through one of the best periods due to the new mass migration to the southern market of the country. Such migration of offices, according to brokers and company executives, began in mid-2020. Back then, most offices were still closed, and employees were leaving megacities, seeking to work remotely in warmer and less densely populated regions.
Secondary real estate market in South Florida began to be massively removed by top managers of the financial and insurance industry. Soon after, ordinary employees also left for them. Next, the largest US law firms settled here, seeing an opportunity to follow their wealthy clients to the south.
Today's situation is called a "turning point in history" and a great opportunity for investors to buy office real estate.