The Real Deal Miami

Cushman sees solid market for Vero Beach offices

The brokerage sees the market for medical office space as a particularly promising market

October 03, 2015 01:00PM

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Vacancy at this Vero Beach medical building fell to 13% from 70% within 8 months.

2801 Ocean Drive, Vero Beach.

Growth in the Vero Beach office market is likely to persist, according to research by commercial brokerage Cushman & Wakefield.
“The Vero Beach office market, including space specifically targeting medical use, has steadily improved since the third quarter of 2013, dropping 5.9 percentage points overall,” said Chris Owen, Cushman’s Florida research manager.
“Coming out of the recession and continuing today, Vero Beach has been a magnet for retirees and service businesses that cater to that demographic,” Owen said. “Coupled with the limited new construction, the city’s core fundamentals should remain positive for the next 18 to 24 months.”
Illustrating the trend, Cushman has brokered leases for an oceanfront medical building in Vero Beach that lowered its vacancy rate to 13 percent from 70 percent in fewer than eight months.
Vero Spine and Rehab is the newest tenant, with 1,066 square feet in the three-story, 14,060-square-foot building at 2801 Ocean Drive, owned by Amalgamated Realty.
Michael J. Gerrior, the Cushman senior associate who brokered the lease with Vero Spine and Rehab, said office demand in the area is supported by a decline of nine percentage points in the Vero Beach unemployment rate in the last five years.