Don’t Believe the Hype: The True Story of South Florida’s Office Space

Industry spin has focused on the influx of new-to-market companies. Yet, local firms are downsizing and leases are not inked at record rents

A pair of sand-colored Weston Corporate Campus office buildings sit vacant, devoid of any employee chatter. That’s because tech firm Ultimate Kronos Group left the two-story complex at the start of the year and consolidated into its other South Florida space. To the south, tucked between Miami Lakes’ leafy suburban streets, a two-story, 34,000-square-foot light beige building with blue columns is
also empty. And in downtown Fort Lauderdale, the 24-story 110 East building is about 40 percent vacant, despite its proximity to booming Las Olas Boulevard. 

These buildings’ vacancies mark a contradiction to the narrative that has labeled South Florida a booming office market. As companies from the Northeast and West Coast expanded or moved to the tri-county region, the hype over leasing activity became near deafening.

Yet, that’s hardly the reality of South Florida office real estate.

“The market isn’t as rosy and beautiful as the landlords make it out to be,” said Zachary Talbot, a Miami-based broker with Cresa.

Over the past two years, longtime locally based firms have consistently shaved off their office space to accommodate the remote and hybrid work shift, according to brokers and tenants. In the first quarter, leasing activity slowed across Miami-Dade, Broward and Palm Beach counties, year-over-year, data show.

Read the full article on the Real Deal.