The MIAMI Association of Realtors® 2026 Q1 South Florida Commercial Real Estate Market Report shows that macroeconomic uncertainty, including the Federal Reserve’s decision to hold interest rates steady amid resurgent inflation and ongoing US-Iran geopolitical tensions, slowed commercial sales activity in the first quarter of 2026.

South Florida (Miami-Dade, Broward, Palm Beach, Martin, and St. Lucie counties) recorded $2.86 billion in core commercial sales (multifamily, office, industrial, and retail), a 1% decline from Q1 2025, while the number of transactions fell 4% year-over-year. This follows strong full-year 2025 sales of $15.2 billion, the second-highest level since 2019.

Despite the quarterly slowdown, underlying demand-supply fundamentals, sustained wealth migration from high-tax states, and investor preference for quality assets in prime locations position the market for a rebound once risks subside.

Key Highlights – Q1 2026

  • Total sales volume across South Florida reached $2.86 billion, down 1% YoY.
  • Transactions declined 4% YoY, with fewer large deals compared to Q1 2025 (particularly in multifamily and office).
  • Industrial (+11%) and retail (+10%) sales volumes rose, offsetting declines in multifamily (-14%) and office (-6%).
  • Median sales price per square foot (PSF) increased in most counties, signaling continued demand for lower-risk, higher-quality assets amid uncertainty.

County-by-County Performance

  • Miami-Dade County: $1.16 billion (-13% YoY). Office sales surged 93%, but multifamily dropped sharply (-55%) due to fewer large deals. Strongest fundamentals in the region, with sales poised to rebound.
  • Broward County: $920 million (-17% YoY). Office sales fell 79% after two major 2025 deals, but multifamily (+10%), industrial (+2%), and retail (+17%) posted gains. Affordable pricing and net migration from Miami-Dade support long-term strength.
  • Palm Beach County: $650 million (+80% YoY). Broad-based growth across all asset types (multifamily +121%, office +30%, industrial +83%, retail +84%). Nation’s #1 county for net income inflow from domestic migration continues to drive robust activity.
  • Martin County: $20 million (-60% YoY). Small transaction volume led to volatility.
  • St. Lucie County: $100 million (+233% YoY). Strong rebound driven by industrial and other sectors.

City-level leaders in sales volume included Miami and West Palm Beach, with gains also in Plantation, Boca Raton, and Pompano Beach.

Pricing Trends – Median Price per Square Foot (Q1 2026 vs Q1 2025)

Overall median commercial PSF rose in most counties, reflecting investor focus on prime, high-quality assets:

  • Miami-Dade: $335 PSF (+2%)
  • Broward: $325 PSF (+1%)
  • Palm Beach: $385 PSF (+15%)
  • St. Lucie: $210 PSF (+20%)
  • Martin: $275 PSF (-4%, volatile due to low volume)

Notable strength in office (e.g., +29% Miami-Dade, +18% Broward) and industrial pricing across the tri-county area; retail and multifamily showed mixed but generally positive trends in key markets.

Market Fundamentals

South Florida’s core sectors continue to outperform national averages in rent growth and vacancy, supported by migration, limited new supply in some segments, and demand for Class A product:

Multifamily

  • Rents: Mixed (Miami +0.6%, Broward -0.4%, Palm Beach +2.0%); all near or above national (+0.1%).
  • Vacancy: Tight (4.6–5.6% vs. 5.7% national).
  • Pipeline: Active, with ~18k units under construction in Miami-Dade (9.4% of inventory) and notable projects in Broward/Palm Beach.

Office

  • Rents: Strong growth (Miami +5.8%, Broward +18.3%, Palm Beach +21.1% vs. national -1.8%).
  • Vacancy: Below national (Miami 12.5%, Broward 14.7%, Palm Beach 11.7% vs. 17.8% national).
  • Pipeline: Moderate expansion, led by major projects in Palm Beach (e.g., Related Companies’ CityPlace towers) and Miami.

Industrial

  • Rents: Robust (Miami +9.6%, Broward +9.1%, Palm Beach +9.7% vs. national +6.8%).
  • Vacancy: Tighter than national in most submarkets (e.g., Broward 6.1% vs. 9.2%).
  • Pipeline: Focused on larger, modern facilities; top projects in Doral, Pompano Beach, and Delray Beach.

Retail

  • Rents: Solid gains (Miami +5.3%, Broward +11.8%, Palm Beach +47.8% vs. national +1.9%).
  • Vacancy: Very tight (3.7–5.8% vs. 5.7% national).
  • Pipeline: Limited new supply, supporting continued rent growth.

Largest Deals in Q1 2026

South Florida saw two $100 million-plus transactions:

  • $163.1M – Industrial property at 2004 NW 25th Ave, Pompano Beach (buyer: BAL POMPANO BC LLC).
  • $110.0M – Office at 1 SE 3rd Ave, Miami (SunTrust International Center; buyer affiliate of Moishe Mana).
  • Other notables: $81.5M industrial in Lauderhill, $78.5M multifamily (Loftin Place) in West Palm Beach, $72.5M mixed-use office/retail (Design 41) in Miami’s Design District, and multiple multifamily deals in Plantation and Weston.

(Full top 10 list available in the MIAMI REALTORS® report.)

Outlook

While Q1 2026 sales were tempered by macro and geopolitical headwinds, South Florida’s healthy fundamentals; tight vacancies, rising rents, strong migration inflows (driver license exchanges +24% YoY), and a solid pipeline of quality projects point to a rebound.

Investor appetite for prime assets in Miami, West Palm Beach, and other high-growth submarkets remains intact.

As interest rate uncertainty eases, transaction volume is expected to accelerate, building on 2024–2025 momentum and Florida’s tax competitiveness.

Click here to read the entire MIAMI REALTORS® report.

Do you have a property to sell?

If you have a property that you need to sell, now is the time to call Quantum Realty Advisors, Inc. for a free, 30-minute consultation to discuss your immediate needs and how we can help to address them. 

On behalf of our clients and strategic partners, we have successfully sell over hundreds of residential and commercial properties in most major markets nationwide. 

Our team has an extensive network of highly experienced partner brokers who can assist with all the local requirements, and we will personally be there for you every step of the way. 

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