By Gay Cororaton, MIAMI REALTORS Chief Economist
Key Takeaways:
- Office vacancy rate in the West Palm Beach-Boca Raton Market Area was 11.3% and 12.8% in the Miami Market Area, the lowest among the nation’s 25 major office markets and coming below the national vacancy rate of 17.6%.
- Brickell has the lowest vacancy rate of 3.7% among South Florida’s major submarkets, a reflection of the strong demand for Class A+/A space in prime locations.
- The West Palm Beach-Boca Raton Market Area and the Miami Market Area are undergoing the most intense growth in construction activity, with 3.9 MSF under construction with expected completion date of 2026-2027, adding 2% to the existing inventory compared to 0.4% nationally.
Download the February 2026 MIAMI Commercial Insights HERE.
West Palm Beach and Miami post the lowest vacancy rates among key markets in February 2026
The West-Palm Beach Boca Raton Market Area and the Miami Market Area posted the lowest office vacancy rates among the nation’s largest markets in February 2026 and below the national vacancy rate of 17.6%.
In the West Palm Beach-Boca Raton Market Area, the office vacancy rate declined to 11.3% in February 2026 (11.9% in February 2025). Office vacancies declined due to an increase in occupancy in 2026. The most notable office lease deal in 2025 was the 200,000 square foot (SF) office lease of cloud- computing company ServiceNow at 10 CityPlace. In 2026, Stephen Ross scored another notable lease for One Flagler, securing a 50,000 SF lease with Wells Fargo who is moving its wealth management HQ to West Palm Beach.
In the Miami Market Area , the office vacancy rate decreased to 12.8% (15.7% in February 2025). The most notable leases are the Amazon 50,000 SF lease at Wynwood which is the largest for Wynwood and Peter Thiel’s office lease at Wynwood which will serve as Palantir HQ. Other notable leases are those of Verizon, Assurant, Uber, ADP, and Sidley Austin.
In the Fort Lauderdale Market Area, the office vacancy rate eased to 15.8% (16.8% in February 2025). The most notable transaction is the 34,000-office lease of MSC Cruises, which makes it the largest lease on the Cypress Creek submarket.
Strong occupier demand for Class A+/A office, with the lowest vacancy rate in Brickell
The South Florida office market continues to see a strong demand for Class A/A+ office space particularly in prime locations. In 2025, the average lease rates for Class A+/A office space in the Miami Market Area was $76.4/SF/year, with rates up 7% from the prior year and a cumulative increase of 64% since 2019. Lease rates held steady for Class B space at $50.1 while lease rates fell for Class C space to $26.5.
Among South Florida’s largest office submarkets, Brickell has the lowest vacancy rate of 3.7%. Brickell’s office inventory is 96% Class A+/A office space. The trophy property is 830 Brickell, with 95% occupancy anchored by tenants Citadel, Kirkland and Ellis, and Santander Bank (95K sq. ft.).
In the West Palm Beach CBD, office vacancy rate is 4.5%. Class A+A accounts for 75% of office inventory. Newer inventory totaling about 1 MSF is forthcoming in 2027-2028 with the construction of 15 CityPlace and 10 CityPlace by Related Ross.
In the Fort Lauderdale CBD, the vacancy rate is 9.7%. The occupancy outlook is bright due to more competitive lease rates at $41/SF and the availability of competitive prime downtown space, with Fort Lauderdale scoring big sales transactions with trade of the Las Olas Towers (350 and 450 E Las Olas Blvd.) and the Bank of America Plaza (401 E Las Olas).
West Palm Beach and Miami are undergoing the most intense office construction
The West Palm Beach-Boca Raton Market Area and the Miami Market Area have the most intense construction activity among the nation’s 25 largest markets when measured as a percentage of existing office stock.
Currently, 3.9 million square feet (MSF) of office space is under construction and slated for completion in 2026-2028, according to Yardi Matrix, adding 2% to inventory. About 2.1 MSF is projected to be completed in 2026, adding 1% to existing office inventory, compared to 0.4% nationally.
In the West Palm Beach-Boca Raton Market Area, 2.0 MSF is under construction with 633,059 SF to be completed in 2026 (1.4% of inventory). Related Ross’ projects 15 CityPlace (481,000 SF) and 10 CityPlace (468,000 SF) in West Palm Beach are the largest office projects underway in South Florida, with expected completion dates of 2027 and 2028, respectively. Projects slated for delivery in 2026 in the West Palm Beach-Boca Raton Market Area are the PGA Corporate Center-Building 2 in Palm Beach Gardens, One West Palm in West Palm Beach, Sundy Village-Block 69/70 in Delray Beach, and the Julia Koch Ambulatory Health Care Center in West Palm Beach.
In the Miami Market Area, 1.6 MSF is under construction with 1.21 MSF slated for completion in 2026, adding 1.3% to existing inventory. The largest project expected to be completed in 2026 is the Royal Caribbean Headquarters in Miami (3rd largest office under construction in South Florida). Other projects slated for completion in 2026 are the Mount Sinai Medical Center in Miami Beach, Safra National Bank Headquarters in Aventura, 2600 Biscayne Boulevard in Edgewater Miami, the Nikola Tesla Innovation Hub in Miami, Offices at the Well in Miami, and Wyncatcher II in Miami. The latest trophy property completed in 2024 was 830 Brickell.
In the Fort Lauderdale Market Area, the T3 Food, Arts, and Technology (FAT) Village and the Jim Moran Foundation on 4545 N. Federal Highway are slated for completion in 2026. The only other office under construction in Broward is the Baptist Health Integrated Center with projected completion in 2027.
