The office vacancy rate in the Broward County office market decreased in the third quarter of 2008. But lease rates and sales declined as economic conditions worsened, according to the CB Richard Ellis third-quarter report for Broward County, released today.
On the upside, the third-quarter office vacancy rate was 12.1 percent, a decrease from the second quarter. It was an increase, however, over the same three-month period last year, the report said. Net absorption in the market overall increased over both the second quarter and the third quarter in 2007.
Statistics were grim when it came to sales and leasing in the office market, with sales decreasing compared to last year and lease rates declining from last quarter. By the third quarter of last year, 1.5 million square feet of office space had been sold. So far this year, less than half that amount has been sold, the report said. The average lease rate of $18.13 per square foot is a decline from last quarter’s average rate but an increase of 47 cents over last year’s.
Net absorption for Class B and Class C space was negative, the report said, suggesting that the financial downturn may be having more of an impact in those submarkets. The report characterized the demand for Class A space as “healthy.” TRD