The Real Deal Miami

Office market still making gains

Higher rents may justify new construction
October 24, 2014 05:15PM

Patrick Duffy

Patrick Duffy

Leading indicators for Miami-Dade County’s office sector point to strong gains that could support new construction.

According to the Daily Business Review, a report from Newmark Grubb Knight Frank shows that the sector has achieved its highest occupancy in five years.

The report noted that the area’s office market has experienced positive net absorption for 18 consecutive quarters, an occupancy rate of nearly 85 percent.

Rents have also increased enough to support new construction. “Usually in the past, new construction compressed pricing a little bit because we had new supply. But I don’t think we’ll see that this cycle,” said Patrick Duffy, a vice chairman in Newmark Grubb Knight Frank’s Miami office. There are just three new office projects are in the pipeline for Miami-Dade. [Daily Business Review]