Miami Absorbs Office Space as Developers Sit on Sidelines

MIAMI—Although a new wave of condo and mixed-family developing is well underway in Miami, office developers are slowing down. After two active years—years that contributed to the largest annual decline in vacancy since 2006—Miami office developers are sitting still.

So says a new report from Marcus & Millichap. The firm reports absence of competition from additional new buildings should make room for landlords to cut into the vacancy rates of the Brickell and Downtown Miami submarkets. Vacancy is expected to decline 90 basis points this year to 16.2%, erasing most of the 120 basis point surge in 2011.