South Florida office rents rise in Q4

In Miami, average asking rents increased to $43.40, up from $39.10 in Q4 2018

TRD MIAMI /
Jan.January 22, 2020 03:30 PM
Miami Beach (Credit: iStock)

Miami Beach (Credit: iStock)

South Florida businesses looking to catch a break on their rent may have to wait another year. Office rental leasing rates rose in the tri-county area in the fourth quarter, year-over-year, according to a newly released report.

Miami’s office rents rose for the eighth quarter in a row, increasing to $43.40 from $39.10 in the fourth quarter of 2018, according to JLL’s Office Insights report. More office space is being delivered as well, including 3310 Mary Street, a Class A building in Coconut Grove with 95,000 square feet.

The news comes as some office markets across the country face headwinds after the co-working giant WeWork saw its valuation drop significantly, and it reportedly could back out of 100 leases in major U.S. markets. The co-working firm is the largest office tenant in New York City.

In Miami, demand for office space remained greater than supply, with net absorption of 120,470 square feet in 2019, according to JLL.

Broward and Palm Beach counties’ office markets also fared well in the fourth quarter. Almost 1.5 million square feet of office space is expected to be delivered in the next 12-24 months in Broward and Palm Beach, combined, according to JLL.

In Fort Lauderdale, net absorption surpassed 500,000 square feet in 2019 for the first time since the recession. Average office asking rents were $34.76 per square foot, up from $34.31 in the fourth quarter of 2018. One of the biggest leases of the year was Ultimate Software’s expansion into a 100,000-square-foot building in Sawgrass Park in Sunrise, where the company signed a 10-year lease earlier this year.

In West Palm Beach, office rents rose to $36.84 from $32.64 in the fourth quarter of 2018. Four office projects are expected to deliver nearly 800,000 square feet over the next 12-24 months – the highest amount of development activity since 2007, according to JLL.


Related Articles

arrow_forward_ios
Banyan Street Capital CEO Rudy Prio Touzet and the two towers (Credit: Google Maps)

Banyan Capital buys Doral office towers for $43M

Banyan Capital buys Doral office towers for $43M
Rishi Kapoor with Forum Coral Gables

Co-working virtually: Coral Gables space rolls out memberships

Co-working virtually: Coral Gables space rolls out memberships
Scott Schoenlank, Andor Kovacs and 6041-6047 Kimberly Boulevard, North Lauderdale (Linkedin, Google Maps)

Restoration 1 franchise founder buys North Lauderdale office and retail center for $6M

Restoration 1 franchise founder buys North Lauderdale office and retail center for $6M
Scott Brenner, Joe Tuttle, and 225 North Federal Highway (Credit: Google Maps)

Addiction treatment firm Banyan buys Pompano Beach office tower for $6M

Addiction treatment firm Banyan buys Pompano Beach office tower for $6M
Charles Cohen and a rendering of the project (Getty, Pelli Clarke Pelli Architects)

Billionaire Charles Cohen proposes 338-foot tall office tower in West Palm

Billionaire Charles Cohen proposes 338-foot tall office tower in West Palm
4700 North Congress Avenue and Velocis Managing Partner Fred Hamm (Google Maps)

Private equity firm sells West Palm medical offices at discount

Private equity firm sells West Palm medical offices at discount
Swire president Kieran Bowers and Brickell City Centre (Google Maps)

Swire sells Brickell City Centre office buildings for $163M

Swire sells Brickell City Centre office buildings for $163M
As resi brokers in South Florida report an uptick in sales and rentals largely fueled by homeowners fleeing dense markets like New York, office brokers say they’re starting to see a similar trend play out among tech firms. (iStock)

More tech firms eye Miami as Covid carries on

More tech firms eye Miami as Covid carries on
arrow_forward_ios

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

Loading...