The Real Deal Miami

South Florida office prices plunge as incentives surge

February 15, 2010 04:41PM

Incentives are part and parcel of any South Florida commercial sale,
but bottom line lease rates are really moving in the region. Steven
Coutts, senior vice president of national research at Studley, a
tenant representation firm, said the region is likely to be a tenants’
market for some time and that recovery will lag the rest of the
country. For as long as the next 24 months, he said the deals
will abound depending on the amount of space required, the length of
the lease and tenant creditworthiness. In Miami, Studley research
showed tenants willing to sign a 10-year lease were typically getting
perks on the order of 10 months of free rent and $35 a square foot for
interior buildouts. In Fort Lauderdale, the average incentive package
included five months of free rent, with $30 a square foot in
interior allowances on a seven-year lease. In West Palm Beach, the
deals were best of all: up to 12 months free for the same term with
$35 a square foot in interior allowances. [SFBJ]