In Miami-Dade county, the vacancy rate for offices fell from 18.6% to 16.8%, which is the lowest it has been since 2009. 10 years ago there was very little land because real estate developers bought it all. Now with firms downsizing and going out of business, a recovery has begun.
This year there are signed leases for 1.3 million square feet. This time last year, there was only 1.2 million square feet signed. During the first quarter of this year, 888,633 square feet were signed and leased. In the second quarter, only 450,988 square feet were leased. Buildings like 600 Brickell will most likely have increased vacancy later this year due to the market.
Rent for offices hasn’t changed much. During the second quarter, rent was $30.10 per square foot which was an increase from $29.99 during the first quarter of this year.
It may take some time before the growth of rent can be seen in the market. Some people are optimistic, while others seen buildings dropping rates because they have lost tenants.
For more information on this topic on real estate trends, visit the Morris Southeast Group.
Tags: commercial real estate, CRE, Morris Southeast Group, South Florida, technology, workplace trends
