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Miami Real Estate - Miami Real Estate news

Monday, August 10, 2009

Miami Office Space, FloridaVacancies Increase

According to a report released Wednesday by Cushman & Wakefield, increasingly higher unemployment is putting a damper on demand for available Miami office space, with vacancy rates rising in the second quarter in South Florida.

The office vacancy rate in Palm Beach County hit 20.9%, up 0.7 percentage points from the previous quarter. The vacancy rate in Fort Lauderdale was 20.3%, up 1.8 percentage points.

Miami managed best, with a 16.1% vacancy rate on Miami office space, up just 0.4 percentage points.

All three Florida areas were higher than the national average of 13.7%.

Maria Sicola, executive managing director and head of America’s research for Cushman & Wakefield said in a news release, “With unemployment at a 26-year high and nearing 10 percent, that inevitably translates into reduced demand for available Miami office space, which has been reflected in the vacancy rate, leasing activity and absorption statistics year-to-date.” Also saying, “One bright spot is that the rate of negative absorption started to slow in the second quarter, and leasing activity picked up in June, two trends that seem to indicate that tenants are beginning to act on opportunities to lock-in value in the current environment in advance of a rebound.”

In June, Florida’s unemployment rate rose to 10.6%.

And while there was a 3.2% decline in overall national average rents to $38.25 a square foot, the asking rates in Miami and Fort Lauderdale rose.

The average asking rate for Miami office space was up 2.1% to $34.53, while the Fort Lauderdale rate was $32.55, up 0.2% from the previous quarter.

At $40.27, up 0.3%, Palm Beach’s rate was above the national average. 

Sicola said recent rental rate increases are “primarily attributable to the delivery of new construction,” which tends to raise the overall average asking price for available space”.


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