Class A office rents rise in Q2 across much of South Florida: report

Miami-Dade County was the exception, with asking rents declining 2.7%, year-over-year

Miami /
Jul.July 30, 2018 04:45 PM

West Palm Beach skyline (Credit: Wikipedia)

Class A office rents across most of South Florida rose in the second quarter due to a strong economy and new construction, according to a new report by Cushman & Wakefield.

The exception was Miami-Dade County, where asking rents declined 2.7 percent year-over-year to $44.96 per square foot.

But Cushman & Wakefield’s Florida research director Chris Owen said this drop does not appear to be a trend or a result of waning demand from tenants. Instead, Owen said this was a result of some tenants taking higher priced property off the market. 

“We are very bullish,” about Miami’s office market,” Owen said. “The amount of tenant demand is still high.”

In addition, the county has 582,000 square feet of Class A office space under construction at the end of the second quarter that was 55.0 percent pre-leased, according to the report.

Among all of Florida’s major markets, Palm Beach County leads in rent growth since the last cycle. The county’s Class A office rents at the end of the second quarter were 20.5 percent above peak rents in the last cycle, according to the report.

On a year-over-year basis, asking rents in Palm Beach County rose 2.9 percent to $44.45 per square foot. Palm Beach is predominantly a small office tenant market, “which allows landlords to push rates more aggressively,” the report said. Downtown Boca Raton’s asking rates increased 1.6 percent year-over-year to $37.82 per square foot. In West Palm Beach, the overall asking rate rose by 1.9 percent in 12 months to $56.62 per square foot.

In Broward County, rents increased 1.7 percent year-over-year to $37.79 per square foot at the end of the second quarter. Demand for office space remained strong as vacancy rates for Class A office space decreased to just more than 10 percent. Fort Lauderdale’s central business district remained relatively unchanged year-over-year at $46.25 per square foot, even as overall vacancy dipped 190 basis points to 10.8 percent, according to the report.


Related Articles

arrow_forward_ios
Trump Plaza’s condo board votes to remove ex-president’s name from West Palm towers
Trump Plaza’s condo board votes to remove ex-president’s name from West Palm towers
Trump Plaza’s condo board votes to remove ex-president’s name from West Palm towers
BridgeInvest's Alex Horn and Rieber Developments' Bernardo Rieber with a rendering of the project 
Rieber lands $15M loan for Aventura mixed-use project
Rieber lands $15M loan for Aventura mixed-use project
Make-A-Wish South Florida CEO Norman Wedderburn and 350 Northwest Sixth Street (Getty, Google Maps)
Make-A-Wish pays $8M for Overtown dev site
Make-A-Wish pays $8M for Overtown dev site
Phillips Point office towers with Related’s Stephen Ross (JLL, Getty)
Related Cos. closes on West Palm office towers for $282M
Related Cos. closes on West Palm office towers for $282M
Saeed Amidi and Moishe Mana (Getty, iStock)
Plug and Play to open downtown Miami office
Plug and Play to open downtown Miami office
(iStock)
Empty cubicles: Vacancies up in South Florida office market in Q4
Empty cubicles: Vacancies up in South Florida office market in Q4
(iStock)
South Florida resi sales jump in Q4: Elliman
South Florida resi sales jump in Q4: Elliman
Sagi Shaked and 201 North Pine Island Road (Shaked Law, Google Maps)
Former Plantation fertility clinic sells for $8M
Former Plantation fertility clinic sells for $8M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...