Office rental prices in Florida’s cities have finally bottomed out, according to data from Jones Lang LaSalle cited by GlobeSt.com. Further, the markets’ growth should surpass that of the nation as a whole for the next six months to a year.
“A diversification of the economy is helping to fuel the resurgence in Florida,” said John Sikaitis, senior vice president of Research at JLL. “Healthcare operations, call centers in Central Florida markets like Tampa, a return of tourists primarily in Orlando and Miami, and South Florida’s growing influence as a global trade center and base of operations for Latin America are all contributing to the upturn.”
Absorption rates in the region are closing in on 2 percent. Much of the professional service job gains are coming from Jacksonville and Tampa, but Miami’s 1.9 percent annual increase remains above the national average.
Though many businesses were hesitant to expand in Florida during the depths of the recession, it no longer carries the perception of being a region in decline, thanks largely to Latin American growth.
Though rents remain well below pre-2007 levels, JLL said the freefall in prices has officially stopped. [GlobeSt]