Here’s why office rents are going up in South Florida

In Miami-Dade County, rents rose to $38.30 psf in Q3 from $35.93 psf in the same period of 2018

TRD MIAMI /
Nov.November 07, 2019 05:30 PM
Office rents rise across SoFla

Office rents rise across SoFla

Three things in South Florida seem certain: death, taxes and rising office rents.

In Miami-Dade County, rents rose to $38.30 per square foot in the third quarter from $35.93 per square foot in the same period of 2018. Vacancy rates dropped slightly to 9 percent from 9.1 percent, according to a report by Colliers International South Florida. Rents are rising partly as a result of new Class A office space being built across the county.

Homebuilder Lennar Corp. signed the largest new lease of the quarter for 156,000 square feet at 5505 Blue Lagoon Drive in the Miami Airport submarket. It was followed by BAC Florida Bank leasing 63,000 square feet in Coral Gables.

More office buildings are on the way with 570,000 square feet breaking ground in the third quarter, according to the report. Much of the new office space will be Class A, as Class A rents shot up to $45.18 per square foot in the third quarter from $42.92 per square foot in the third quarter of 2018.

Broward County office rents rose 8 percent, year-over-year, to $31.74 per square foot in the third quarter, while vacancy rates dropped to 9.0 percent from 9.7 percent, according to the report.

The largest lease in Broward was for doctor staffing firm Hayes Locums, which signed a 77,000-square-foot lease at Cypress Financial Center that will serve as the company’s new headquarters, according to Colliers. In Broward County, demand continues to remain strong for office buildings in downtown Fort Lauderdale. In the third quarter, Philadelphia- based Alliance HSP bought the One Financial Plaza in downtown Fort Lauderdale for $117 million.

In the northernmost part of the tri-county region, Palm Beach County rents grew to $31.81 per square foot, year-over-year, from $29.92 per square foot, driven by new office space in downtown West Palm Beach. Vacancy rates fell to 10 percent compared to 10.4 percent in the same period of the previous year, according to Colliers.

Related Group’s 360 Rosemary, a planned 300,000-square-foot Class A office building in West Palm Beach, has already started pre-leasing. The law firm Lewis, Longman & Walker signed a lease for 12,366 square feet.

The largest lease in Palm Beach County was for Kroger Co.’s online health and wellness business, Vitacost.com, for 43,000 square feet at Boca Raton Innovation Campus.


Related Articles

arrow_forward_ios
NAI/Merin Hunter Codman Chairman Neil Merin and Golden Bear Plaza

Golden Bear Plaza office complex in Palm Beach Gardens sells for $50M

Golden Bear Plaza office complex in Palm Beach Gardens sells for $50M
Luis Castillo, Eric Williams, Danny Finkle and 6701 Red Road

Whole Foods-anchored retail in Coral Gables sells for $47M

Whole Foods-anchored retail in Coral Gables sells for $47M
Anabella Smith, Louis Archambault, Scott Goldstein

“There’s a lot of concern about going back to an office”: how companies are returning to work in South Florida

“There’s a lot of concern about going back to an office”: how companies are returning to work in South Florida
Jeff Greene and a rendering of 550 North Quadrille Boulevard (Credit: Arquitectonica International via Facebook)

Billionaire Jeff Greene battles with WPB mayor over unfinished office building

Billionaire Jeff Greene battles with WPB mayor over unfinished office building
Mayor of Miami Beach Dan Gelber (Credit: Nicholas Hunt/Getty Images)

Miami Beach creates $550K rent relief fund

Miami Beach creates $550K rent relief fund
23 Tahiti Beach Island Road and 4965 Southwest 82nd Street

Cuban coffee mogul trades waterfront Tahiti Beach mansion for Ponce-Davis estate

Cuban coffee mogul trades waterfront Tahiti Beach mansion for Ponce-Davis estate
(Credit: iStock)

Here’s how South Florida’s office market is changing in the coronavirus era

Here’s how South Florida’s office market is changing in the coronavirus era
Chandler Joel Reedy, 300 Casuarina Concourse (Credit: Google Maps)

Private equity investor buys Gables Estates waterfront home

Private equity investor buys Gables Estates waterfront home
arrow_forward_ios

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

Loading...