Market Trend: South Florida’s Office Vacancy Falls to 13.5%
The South Florida Office market ended the third quarter 2013 with a vacancy rate of 13.5%.
The vacancy rate was down over the previous quarter, with net absorption totaling positive 551,507 square feet in the third quarter. That compares to positive 769,100 square feet in the second quarter 2013. Vacant sublease space decreased in the quarter, ending the quarter at 722,903 square feet.
Tenants moving into large blocks of space in 2013 include: Miami Herald Media Company moving into 158,266 square feet at 3511 NW 91st Ave; Management Resources Institute moving into 40,000 square feet at 550 LeJeune Rd; and Aldridge Connors moving into 39,788 square feet at 1615 S Congress Ave.
Rental rates ended the third quarter at $26.04, a decrease over the previous quarter.
A total of three buildings delivered to the market in the quarter totaling 31,512 square feet, with 812,735 square feet still under construction at the end of the quarter.
This trend is compared to the U.S. National Office vacancy rate, which decreased to 11.6% from the previous quarter, with net absorption positive 23.48 million square feet in the third quarter. Average rental rates increased to $21.75, and 244 office buildings delivered to the market totaling more than 12.2 million square feet.
You can access CoStar’s 3rd Quarter Office Market report by clicking on the following link:
South Florida Office Market Report-3rd Quarter 2013