The Covid-19 pandemic, among many other factors discussed in this report, have propelled a mass corporate migration to Miami-Dade County. Companies and people alike have been enticed to the County’s low tax policies, looser Covid restrictions, economic incentives, and lower overall real estate costs.
Over the past year, momentum has been building and a clustering of technology, financial, and wealth management companies has taken formation creating one of the largest emerging fin-tech hubs in the nation. You can read more about this formation in our Q1 2021 Miami-Dade County Office Market Report.
Explore Brickell’s office and luxury residential market in part four of this six-part series.
Brickell Office Market Overview
Known as the Manhattan of the South, Brickell is a major hub for South Florida’s burgeoning financial services industry and other professional services firms. Located in the heart of Miami-Dade County, the submarket is home to a multitude of office towers inhabited by law firms, banks, and tech companies, which has only been accelerated post Covid-19. Additionally, Brickell is home to local, regional, and global headquarters of several multinational firms, including Young & Rubicam, Mastercard, and Santander Bank.
The Class A office market is recovering, in spite of the pandemic, as corporate relocations from the Northeast and Midwest flock to South Florida, with Brickell being one of the most coveted markets of them all.
Despite slight negative absorption in 2020, there is a sense of optimism for a very strong 2021 as the momentum of in-migration continues to grow. Private equity giant, Thoma Bravo who signed a lease for 36.5K square feet at 830 Brickell is one of many technology, finance, private equity and investment firms committed to relocating to Brickell from across the U.S.
Equally, existing tenants in Brickell have re-affirmed their commitment to the market post-Covid with Banco Sabadell renewing its 53K square foot lease and HIG Capital renewing its 33K square foot lease.
Being such a prominent market, Brickell has some of the highest office rental rates in the County, ending Q1 2021 at $66.70 per square foot, an increase of 4.9% year-over-year. Learn more in our Q1 2021 Miami CBD (Brickell and Downtown Miami) Office Submarket Report.
Brickell Residential Market Overview
Brickell saw the most growth in the $1 million to $5 million sales price range. The volume of sales in Q1 2021 increased by 211% to 28 closed transactions, compared to 9 transactions in Q1 2020. This growth has not yet translated into increasing sales prices, as the volume of listing inventory remains high. As such, the number of days on the market has also remained high, in fact, increasing by 125% for sales in the $1 million to $3 million range, and 150% in the $3 million to $5 million range.
While Brickell is the heart of the financial district, it has relatively fewer listings above the $5 million threshold, hence only 1 sales transaction in the past two years, and only 11 current listings at the end of Q1 2021.
In the $3 to $5 million range, there were only 2 transactions in 2020, both of which occurred in Q1. In Q1 2021, there were also 2 transactions, both at a discounted total sales price, and price per square foot, relative to 2019 and 2020.
- The number of Days on the Market (DOM) are increasing in the Brickell submarket across all luxury price ranges.
- Very few sales and limited inventory above $5 million in the Brickell submarket.
- Increasing number of sales in the $1 million to $3 million range, although sales prices have dropped marginally and DOM’s are increasing significantly.
Download the full report here.
About the Authors:
Verity Mosquera: Accomplished research analyst and project manager, Verity Mosquera, uses her experience in analytics, leadership, and international business to monitor the global economy and its impact on the commercial real estate market. She oversees research operations, manages a team of Research Analysts, and supports the company’s brokers primarily in the South Florida offices. Verity understands the needs of our clients and works to deliver top-notch market research and analysis to help them make the most informed real estate decisions.
Haley Boatright: As a Research Analyst in the Miami office of Colliers International South Florida, Haley supports the research needs of the Colliers South Florida team. She is responsible for providing information resources and research, and a platform of comprehensive commercial real estate market data. Haley is accountable for the preparation and writing of quarterly market reports in addition to assisting team members in ongoing and ad hoc research projects by providing market trend analysis and forecasting along with direct research support.