High-end office space seen as key to meeting demand

High-end office spaces in markets like Wynwood and the flight-to-quality trend where investors seek newer, well-located properties, often Class A, that offer premium amenities are key drivers for demand in the commercial real estate market.

The overall office vacancy rate in Miami fell to 15% at the end of the third quarter of 2025, which runs from July through September, according to a report from Cushman & Wakefield. The same report states that the Miami office market’s average asking rate increased to $64.74 per square foot and $70.64 per square foot for Class A space, the highest-quality buildings. The limited number of office spaces in Wynwood and the ones that are available being new keeps prices high, according to Executive Managing Director of Cushman & Wakefield Andrew Trench.

“I think the demand has certainly picked up a little bit here in the last year or so, but a lot of that is tied to the quality of the product,” he said. “Pretty much all of the Class A office space is brand new construction, so the quality of the buildings is at a very high sort of Class A level because they’re brand new buildings and so they’re priced accordingly, regardless of maybe market dynamics if you will.”

With fewer top-tier office spaces on the market in Brickell, Wynwood has the type of spaces tenants are looking for.

“There’s just not a lot of high-profile space in Brickell left over,” Mr. Trench said. “Most of the best spaces in Brickell have been leased, so when we get tenants who prioritize being in a new development with all the amenities and efficiencies of new buildings, they generally start heading toward Wynwood because that’s where you can get the product, and then it is priced sort of accordingly.”

Another report from Cushman & Wakefield indicates that Miami has an inventory of 39,524,844 square feet of offices and with 555,402 more under construction as of the third quarter. Some office users in Wynwood are large companies.

“Right now, I don’t think there’s much new office being built as these other Class A buildings begin to fill in,” Mr. Trench said. “If you look at the tendency that has come to Wynwood, it’s extremely encouraging and impressive between Amazon, OKO Group, PricewaterhouseCoopers, Sony Music. I mean, you have some of the biggest office tenants and biggest names in office leasing moving to Wynwood and signing leases, so there’s good signs.”

Mr. Trench, who says his company has done deals at Wynwood Plaza with notable office tenants, expects to see more tenants move to Wynwood in the future.

“There still are several smaller tenants that are coming there,” he said, “but I’m a firm believer that as the multifamily continues to fill up and you have really kind of worker level demographics living in the area, it’s beginning to make much more sense for office tenants to move to Wynwood and that, I think, will create a boom into Wynwood office market here in the next few years because if you really look at Wynwood from 30,000 feet up on a map, it is this incredibly strategic location where it’s easy to get to, from an urban perspective, almost everywhere in South Florida.”

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