Tight Coconut Grove office market keeps rents rising
Miami Today Discusses Coconut Grove Office Market with Lee & Associates South Florida Principal, Bert Checa
'Tighter Beach Office Market Seeing Record-Breaking Rates'
Office space in Coconut Grove remains in high demand as low vacancy rates reflect the limited amount of space available.
Bert Checa, a principal at Lee and Associates South Florida, says the vacancy rate in Coconut Grove is 2.75% and the average rental rate for Class A and Class B office spaces combined is $70 per square foot.
Impacting the conversation are new developments that were previously projected to be completed in mid-2025 and now expected to be completed in 2026, Mr. Checa said.
Vizcaya Capital 2871 Oak Ave., a new development previously expected to be completed in mid-2025, is now targeting a completion in the fourth quarter of 2026, said Mr. Checa. “The reason why the market continues to increase in rate is that there’s just no new product.”
The other office project in line, also targeting completion in the fourth quarter of 2026, is at 3443 Grand Ave.
Mr. Checa said he believes the market will “continue to break records with higher rates.” Additionally, he said, people will continue to see the same path in the upcoming year of 2025 due to the two projects in line not being completed by then. “I would say, forecasted relief would be towards the end of 2025, possibly early 2026, where you may see a flattening. I don’t anticipate a reduction, but I think maybe a stopping of the increase in rates and a flattening of the cost if these two projects are completed.”
What draws people in to look at office space in Coconut Grove is the location, Mr. Checa said. “It’s the oldest neighborhood in Miami, and it’s very enchanting. The streets are all shaded with landscaping and trees.” Additionally, there are strong, diverse amenities offered throughout the market such as restaurants and high-end retail.
It’s an area with high walkability and it’s safe, said Mr. Checa. “The walking score on a lot of these buildings are all in the high 90 percentiles.” This means people don’t need cars to do many things. “The traffic flows a lot quicker for tenants; employees coming from Kendall, it’s a much shorter drive time than to go out all the way to Brickell and Downtown.”
Newer buildings in Coconut Grove have attracted interest, said Mr. Checa, as tenants have been going to markets with newer office buildings...
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About Lee & Associates South Florida
Lee & Associates South Florida is a fully vertical commercial real estate brokerage firm focused on industrial, office, retail, multifamily, investment and land sectors. Our dedicated team of professionals is led by Matthew Rotolante, CCIM, SIOR a 4th generation South Florida native in a family that has owned and operated commercial property here since 1928. Lee & Associates is the largest agent owned brokerage in the nation with Senior Agent’s ability to earn profit share resulting in the highest splits while still receiving full resources, support and leads from our national network. Our collaborative and cheerful culture allows for open communications throughout the company, fostering the sharing of information and best practices to better enable client decision making. The Lee & Associates’ robust national network that sold and leased over $115 Billion in the last 5 years offers clients a cross-market platform of expertise and deal opportunities across all asset specialties and representation roles. For the latest news from Lee & Associates South Florida, visit leesouthflorida.com or follow us on Facebook, LinkedIn, Twitter and Instagram, our company local news.
About Lee & Associates
Lee & Associates is a commercial real estate brokerage sales, leasing and management firm. Established in 1979, Lee & Associates has grown its service platform to include over 75 offices in the United States and Canada. Lee & Associates is the largest agent owned commercial real estate brokerage where agents get the greatest return for their efforts and hence are more committed and better enabled to provide superior results for their customers. For the latest news from Lee & Associates, visit lee-associates.com or follow us on Facebook, LinkedIn, Twitter and Link, our company blog.
