A lack of new construction and strong employment growth is helping Miami-Dade County’s office market chip away at vacancies and raise rents.
The county’s year-over-year office vacancy rate fell from 16.5 percent to 16.1 percent during the first quarter of 2014, according to Miami Today, which cited CBRE data. Year-over-year asking rents increased 29 cents to $30.72 per square foot. Miami’s Central Business District led the way, with asking sublease rates at certain Class A buildings reaching as much as $60 per square foot.
“We’re very bullish on office rents and vacancies poised to decline a couple of percentage points over the next few years before stabilizing in about 2015-2016,” CBRE director of research and analysis Quinn Eddins told Miami Today.
JLL reported steady vacancy declines in Miami’s Class A office sector since mid-2010, when the rate exceeded 22 percent. The current direct vacancy rate is 16.6 percent. [Miami Today] — Eric Kalis