Class A office rental rates in Miami-Dade County and Broward each jumped 6.3 percent in 2015, to $41.48 and $33.34, respectively, marking the highest increase among major markets statewide, according to a new report released Wednesday by Cushman & Wakefield.
Miami-Dade County asking rents were 7 percent higher at year-end 2015 than the high of $38.76 during the peak of the last real estate cycle in 2008-2009. And vacancy for Class A space dropped 7 percentage points over the past five years, Cushman & Wakefield‘s Year-End 2015 Florida Statewide Rental Report shows.
Palm Beach County Class A asking rents also rose in 2015, by 5.5 percent in 2015 to $37.45, the report said.
Statewide, asking rental rates for Class A office space increased 5 percent over the past year, on strong leasing activity and absorption, according to the report. All major markets had solid increases in asking rents.
While rents in markets in the northern part of the state continue to improve, they have yet to surpass the rent peaks from the last cycle. Tampa, Orlando and Jacksonville were off by 4.2 percent, 8.1 percent and 5.3 percent, respectively.
“The office markets in Florida ended 2015 on a high note, ”Larry Richey, Cushman & Wakefield’s senior managing director and Florida market leader said in a statement. “Rents grew across the board with the vacancy rates approaching levels not seen since before the financial crisis. New construction, particularly in South Florida, is being fed by strong confidence in the positive market fundamentals.”— Ina Cordle
Check out a map of fourth quarter office rents in Florida below:
A map of office rents in Florida (Credit: Cushman & Wakefield)