New-to-Market Activity Drives Demand
The Wynwood/Design District submarket continues to attract new-to-market firms, particularly those in the technology, startup, and finance industries, including cryptocurrencies. Firms are relocating headquarters to Wynwood, like Blockchain.com, while others are establishing or adding new headquarters, such as Spearmint Energy, Schoneld Strategic Advisors, and Nirvana Technology. The continued migration of companies has attracted new investors to Wynwood also. For example, San Francisco based Brick & Timber Collective entered South Florida with their first two purchases taking place in the submarket (Wynwood Annex 25 and 2734 NW 1st Avenue). With luxury office product coming to market, the asking rental rate increased 19.6 percent year-over-year and 4.9 percent quarter-over-quarter, meanwhile, the vacancy rate dropped 160-basis points quarter-over-quarter.