By Gay Cororaton, MIAMI REALTORS Chief Economist
Key Takeaways
- Commercial sales transactions of multifamily, office, industrial, and retail properties rose 32% to $2.9 in the Tri-County area in 2025 Q1.
- Broward County lands the largest office and multifamily deals in 2025 Q1.
- At the city level, Fort Lauderdale had the largest commercial sales volume in 2025 Q1.
Access the 2025 Q1 Southeast Florida Commercial Market Report HERE.
Large deals prop up 32% increase in commercial sales to $2.9 billion in 2025 Q1
In the first quarter of 2025, $2.9 billion of multifamily, office, industrial, and retail commercial real estate traded in the counties of Miami-Dade, Broward, and Palm Beach, representing a 32% increase from the same period last year, on par with the 36% increase for the full-year of 2024 when sales rose to $12.5 billion. MIAMI Realtors® estimates are based on county records obtained via iMapp.
By type of property, office transactions rose to $0.9 billion, up +185%. Multifamily had the second largest increase, up 48% to $1 billion. However, industrial transactions fell 32% and retail transactions declined 12%.
While dollar sales volume rose, fewer properties were traded, with 848 properties traded, down 26% from one year ago. Fewer trades with rising sales volume means larger trades on average than one year ago. Larger trades are indicative of a continuing shift towards high quality, low risk investments in a period of rising economic uncertainty.
Broward County landed the largest office and multifamily deals in 2025 Q1
Miami-Dade County had the largest sales volume ($1.4 billion) with sales up 30%. However, Broward County saw the largest uptick in sales volume of 109%. In Palm Beach County, sales fell 56%.
At the city level, Fort Lauderdale topped the Tri-County market in terms of sales volume ($561 million) on account of two large office deals and two large multifamily deals.
The office building acquisitons were the building on 401 E Las Olas Boulevard, Fort Lauderdale ($221 million) and the building on 350 E Las Olas Boulevard, Fort Lauderdale ($208 million).
The multifamily building deals were the building on 16700 Sheridan St., Pembroke Pines ($118 million) and the building on 361 N University Drive, Plantation ($102 million).
Southeast Florida commercial market fundamentals are solid
With job growth (1.5% in 2024 Q3) that outpaces the nation (0.8%) as of 2024 Q3 , Miami-Dade County’s commercial market fundamentals are solid.
Office, multifamily, industrial, and retail vacancy rates are generally lower in the Tri-Counjty area compared to nationally, leading to stronger rent growth.
In Miami-Dade has one of the lowest office vacancy rates in the nation (16%) compared to 20% nationally. About a million square feet is under construction, equivalent to 2.6% of existing stock. The additional supply will still not raise the vacancy rate to the high level that are plaguing marketes like San Francisco (34%), Austin (30%), and Atlanta (29%), according to Cushman and Wakefield estimates.
However, significant multifamily construction is underway in Miami-Dade County, equivalent to 20% of the existing inventory. More concessions on Class A multifamily rentals during the leaseup period will tend to push rents downward and increase vacancy rates in the Class B and C units. However, challenging affordability conditions in the for-sale market will sustain a healthy demand for rentals. This counterbalancing forces are likely to lead to a modest multifamily rent growth in the next two to three years in Miami-Dade County.
