FT News Briefing Miami: a rare bright spot in US office real estate
Jul 31, 2024
Luxurious office space in Miami has hit astonishing prices, reaching nearly $200 per square foot. The surge is fueled by a wave of new residents and businesses, but concerns about sustainability loom large. Meanwhile, London's stock market is losing ground to rivals like New York, particularly in mining listings. On the other hand, Pakistan's banks are thriving despite a shaky economic backdrop, benefiting from government debt, although there are worries about the long-term viability of this success.
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Miami's Booming Office Market
- Miami's luxury office space market is booming, defying nationwide commercial real estate trends.
- High demand and limited supply drive record-breaking rents, exceeding even New York's prices.
Record Rent at 830 Brickell
- A Brazilian bank leased space at 830 Brickell for nearly $200 per square foot, a record high.
- This same building leased space for as low as $60 per square foot in 2019, demonstrating rapid growth.
Demand for Luxury Office Space
- Companies moving to Miami for tax advantages seek high-quality office spaces similar to those in other major cities.
- Limited availability of such spaces allows landlords to charge premium prices, fueling rent increases.