Tenants are beginning to show interest in lease renewals in Miami-Dade County following months of office closures and other restrictions. The latest report from Colliers International shows that interest in lease renewals as well as sublease space increased in the third quarter compared to the second quarter.

Three of the five largest leases signed in the quarter were lease renewals and expansions, another sign of recovery. Those leases include the deal by co-working operator Regus. The company signed a 20,700-square-foot renewal/expansion at 6303 Blue Lagoon Drive in the Miami Airport submarket.

While lease renewals were a bright spot for the Miami-Dade County market, other fundamentals continues to show signs of market deterioration. According to the same Colliers report, the vacancy rate increase 1.1% over the second quarter, bringing it to 10.7%, and absorption was negative 836,566 square feet; however this number was a 100,000 increase from the second quarter. In addition the sublease supply increased to 1.15 million square feet, an alarming 42% bump compared to the previous quarter. The increase in sublease space is an illustration that companies are continuing to reassess their office needs following the pandemic.