As reported by the Miami Herald, the commercial real estate market outlook looks strong as we head into 2017. The only caveat is: as long as more mass transit is on the horizon.
In the office market, rents are at an all-time high in certain markets, according to Cushman & Wakefield which represents nearly 5 million square feet of office space in South Florida. For instance: Office space in Brickell is hitting around $60 a square foot for Class A space (back in 2008 the high was in the upper $40s) with downtown Miami just behind followed by Aventura and Airport West. Cushman & Wakefield predicts rental rates will continue to rise in 2017 and is optimistic that Miami could be a $70 rental market in 2022.
Meanwhile, Miami’s retail landscape is hitting record highs. Retail rents on Lincoln Road have surpassed $300 a square foot, hitting $200 in the Design District and $100 a foot in Coconut Grove and Wynwood.