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Financial sector office renters account for 21.6% of post-COVID leasing in Miami
Florida remains firm on the path to becoming the new Wall Street.
This migration is already evident in the numbers.
Even with leasing below the pre-pandemic level, new commercial tenants are making up for vacant space.
According to data from Warningn Young, since the beginning of the COVID-19 pandemic, these financial tenants have accounted for 21.6% of the demand for commercial offices in the Miami area, compared to 16.4% before the pandemic.
This same survey shows that, compared to the period before the pandemic, the financial sector was the only one to increase (and not decrease) the number of job openings in the Miami metropolitan area.
However, this growth has not been enough to fill all the empty office space located in the South Florida counties (Miami-Dade, Palm Beach and Broward).
In this region, according to a report by Cushman & Wakefield, the third quarter of 2021 indicated an increase in the number of leases compared to the same period last year, but the numbers were below the second quarter of this year.
Also according to the report, this is a reflection of the delay in the delivery of new commercial constructions planned for these areas.
In addition, the price of rents for commercial spaces also increased during this period. In Miami, office rents are at $43.47 a square foot, an increase of 11.3% since 2019.
Daniel Ickowicz, director of sales at Elite International Realty, which tracks the economy and real estate market, particularly in Florida, believes the sector is well tackling these economic hurdles caused by the pandemic.