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<\/p>\nAfter years of dramatic increases in\u00a0rents, it is now discount season in the Miami office market.<\/p>\n
<\/p>\n
\n Bisnow\/Chloe Gallivan\n <\/p>\n
\n Brickell is one of Miami’s most expensive and prominent office markets.\n <\/p>\n
Average asking rents in Miami were flat\u00a0between the third and\u00a0fourth quarters, rising just a penny to $63.06 per SF, according to Savills’ year-end office report<\/a>. But under the surface, prices dropped.<\/p>\n Effective rents, which account for concessions like tenant improvement allowances and periods of free rent, dropped 32% over the first three quarters of 2025, according to CompStak\u00a0data provided to\u00a0Bisnow. That means the average rent tenants agreed to pay over the course of their leases last year fell from roughly $62 per SF in January to about $48 per SF in September.<\/p>\n \u201cLandlords are not super eager to start lowering rents on the surface, but to entice tenants, they will increase concessions packages, effectively lowering the effective rent,\u201d\u00a0JLL<\/a>\u00a0senior research analyst Rachel Dickinson said.<\/p>\n The free rent ratio has risen above pre-pandemic levels, now taking about 4.6% of lease terms, which is 1.1% higher than 2019 levels, according to CompStak.<\/p>\n Tenants\u00a0have\u00a0jumped on the deals, which\u00a0now average\u00a0eight months of free rent plus rising TI packages.\u00a0There were\u00a05M SF of leases signed for Miami office space\u00a0in 2025, a 36% increase from 2024, according to Savills.<\/p>\n \n Courtesy of CompStak\n <\/p>\n \n Effective rents remain nearly 30% above the Q3 2019 average.\n <\/p>\n The jump in activity after\u00a0a down 2024<\/a>\u00a0came as a surprise to\u00a0Savills<\/a> senior research analyst Andrea Duque.<\/p>\n \u201cEspecially because during the whole year, I was hearing comments from the brokers saying that activity was slow,\u201d Duque said. \u201cSo that did surprise me.\u201d<\/p>\n The area’s effective rents are still 30% higher than they were in 2019, according to CompStak, far outpacing the national average for rent growth. Even in Manhattan, the strongest office market in the country last year, average\u00a0asking rents have yet to recover to their 2019 levels, according to Colliers<\/a>.<\/p>\n By contrast, between 2020 and 2025, asking rents\u00a0in Miami rose\u00a0more than 50%,\u00a0according to a third-quarter Savills report<\/a>. The rise was driven by\u00a0new-to-market activity<\/a>\u00a0\u2014 companies\u00a0from New York and California were used to paying twice as much for offices in their home states and drove up the price for the limited supply of top-notch space.<\/p>\n In Brickell, Miami’s financial district, asking rents have more than doubled since the pandemic, and until mid-2024,\u00a0they were still shooting up<\/a>.\u00a0<\/p>\n But a slowdown in corporate migrations was mirrored by landlords’ asking rents, which grew just\u00a05% between 2024 and 2025,\u00a0Duque wrote to\u00a0Bisnow\u00a0in an email. The last time Miami saw annual rent growth that slow was in 2020,\u00a0when asking rates rose 3.7%.\u00a0<\/p>\n \u201cBased on this, we could say that rent growth is cooling and normalizing toward the more typical market rent trends Miami experienced prior to the pandemic,\u201d Duque wrote.<\/p>\n Asking rents in Miami\u2019s most expensive market, Miami Beach, still increased by about a dollar to $110.63 per SF, although asking rents in Brickell decreased by nearly\u00a0$2\u00a0per SF\u00a0to $88.86, according to\u00a0Savills.<\/p>\n In Colliers’ preliminary numbers, average asking rents in Miami-Dade County decreased by 17 cents per SF to $65.20.<\/p>\n Several deals signed in the fourth quarter consisted of tenants moving to more affordable submarkets, such as Fowler White Burnett, which\u00a0moved from the Brickell Arch building<\/a> to Citigroup Center in Downtown Miami.\u00a0<\/p>\n City National Bank<\/a>\u00a0renewed its 36K SF lease\u00a0at 1450 Brickell Ave.,\u00a0despite signing a 145K SF lease<\/a>\u00a0in April, one of the largest of the year,\u00a0for a new headquarters in Coral Gables.<\/p>\n Along with sliding rents,\u00a0another trend is emerging, Duque said: a rise in subleasing.\u00a0<\/p>\n One of the largest deals of the fourth quarter was a sublease.\u00a0Restaurant Brands International<\/a>, the parent of\u00a0Burger King<\/a>\u00a0and Popeyes,\u00a0signed a 43K SF sublease<\/a>\u00a0from\u00a0L\u2019Or\u00e9al in the\u00a0Waterford Business District<\/a>.<\/p>\n Duque said she expects larger sublease spaces to enter the market and compete with direct space, especially since tenants can be more flexible with the rents they offer than landlords, who lean more on concessions to get deals signed.\u00a0<\/p>\n \u201cThey never really\u00a0[say], \u2018Oh, we’re asking this,\u2019\u201d Duque said\u00a0of companies with space listed on the sublease market. \u201cIt’s like, \u2018Let’s see how much we can get.\u2019\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"After years of dramatic increases in\u00a0rents, it is now discount season in the Miami office market. 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