Ft. Lauderdale Office Market Conditions
August 15, 2011
The Ft. Lauderdale office market changed very little in the second quarter this year and increased 80 basis points from 1Q2011, with the overall vacancy rate hovering at 19.9%. Ft. Lauderdale’s office market ranks 86th nationwide based on the vacancy factor, out of 132 U.S. metro markets monitored by the New York data gathering company, REIS. We’re in similar company with Oakland/East Bay CA (19.3%), Denver, CO (19.8%), Cincinnati, OH (20%) and nearby Naples, FL (20.2%).
It is our view that these market conditions are likely to remain for several years to come, even when the national economy emerges from its current malaise. Why? The continued advance of business automation and technology has made our workforce more efficient and businesses are commonly run with fewer people. Reduced or flattened headcount does not create demand for office space. Further, there is a 10+ year trend of businesses designing office space with fewer square feet of occupancy per employee – for the obvious reason of lowering their occupancy costs.
Property owners should be vigilant about lowering operating costs to the degree possible, work harder than ever at tenant retention and when they have vacant space, hire the very best broker and invest in marketing to fill availabilities.
To learn more about the Broward County office market, Miami offices for lease or sale or South Florida tenant representation, contact Ken Morris, principal of Morris Southeast Group/CORFAC International at 954.474.1776 ext. 1.