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Class A Office Buildings Class A corporate leasing in South Florida has gained momentum as investors invest heavily in corporate development. These developments generally include buildings featuring high-quality amenities, finishes and are professionally managed. They are also typically located in the epicenter of businesses and key areas in South Florida, including Miami, Coral Gables, Sunny Islands, Fort Lauderdale, as well as West Palm Beach. Cost of Class A Leasing There are many factors that influence commercial leasing building costs. The condition of the space, size of the space, lease structure, and quality of the finishes are just a few. Commercial rents are calculated on a price per square foot basis because space can be divided or combined. To calculate the total annual rental rate, brokers take the price per square foot times total square feet. Commercial Leasing Trends Since 2019, demand for office space has been at an all-time high in Miami-Dade County. “The growth spurt is due to swelling population numbers, job growth, and the popularity of emerging neighborhoods,” said JLL Managing Director Matthew Cheezem. According to JLL, there were 1,785,666 square feet of Class A office under development at the time. Locations included Coral Gables, Coconut Grove, Aventura, Brickell, Wynwood, and the Design District. The rental rates throughout Miami-Dade spiked by 1.1% over the same period year-over-year to average asking rent of $41.11 a square foot. According to the Miami Herald, “The highest rents for Class A office spaces were in Coconut Grove ($55.78 per square foot), Brickell ($55.36), and Aventura ($54.85).” Fast forward to 2020, office vacancies are at an all-time high but rents across South Florida continued to rise. Miami Dade had an asking rate of $41.68 per square foot (PSF), according to the report from Colliers International. Broward County had the lowest average asking rent, at $33.59 per square foot. Now in 2021, Miami Downtown Development Authority averages the cost per square foot in an office space is $45.45 --the highest it has ever been. Specific locations costs were ever higher. Class A office rent averages at $63.49 PSF in Brickell. The lowest asking rent was $24.39 per square foot, in South Dade.