Home > Research > U.S. Leasing Market Reports Detail

South Florida Market Reports

South Florida Office Market Report

Average Asking Rent (Price/SF)     $33.83
Vacancy Rate (%)       11.1%
Net Absorption (SF)       2,247

The second half of 2019 was off to a slower start than usual, as Broward and Palm Beach County's positive absorption was negated by Miami-Dade County's negative absorption. The region saw a balance between supply and demand with positive net absorption totaling 2,247 square feet during the third quarter of 2019. Vacancy increased 10 basis points from the previous quarter while dropping 60 basis points from one year ago to settle at 11.1%. The modest positive absorption in third-quarter 2019 brings year-to-date absorption to just over 457,000 square feet. This is a 35.6% decrease from the 710,000 square feet recorded one year ago. Although market fundamentals remained in the black, the region's office sector appeared to be slowing, as vacancies held level over the past three quarters. The need for higher-end and second-tier space fell during the quarter, as the Class C sector accounted for more than 10,000 square feet of positive net absorption, whereas the supply of Class A and Class B properties just outpaced demand in both segments. However, the Class A sector led in year-to-date total demand with more than 267,000 square feet of positive net absorption, compared with Class B properties' combined total of 149,729 square feet. Asking rents also slowed, as the overall average asking rate ticked up $0.96/SF year over year to $33.83/SF, another record level but the smallest annual gain in five years. Class A properties inched just shy of the $40.00/SF mark, increasing $0.26/SF only to $39.93/SF from one year ago. Class B properties recorded the strongest year-over-year improvement, as their average asking rate climbed $1.24/SF from the third quarter of 2018 to $29.88/SF.

South Florida Industrial Market Report

Average Asking Rent (Price/SF)           $9.05
Vacancy Rate (%)             4.2%
Net Absorption (SF)       376,306

The third quarter of 2019 marked almost nine consecutive years of growth for South Florida's industrial market, as demand outpaced supply for the 38th consecutive quarter, the longest growth streak recorded. Although market fundamentals remained strong, market conditions continued to slow, as demand fell by almost half from the previous quarter to 376,000 square feet of positive net absorption. Year-to-date, net absorption totaled 1.7 million square feet. Demand still outpaced supply during the third quarter. However, new industrial developments completed throughout the region pushed vacancy up to 4.2%, an increase of 30 basis points from the previous quarter and 60 basis points from 3.6% one year ago. The robust development of the past 24 months has created approximately 9.5 million square feet of new industrial inventory, but strong demand during this time has kept market occupancy above 95.0%. Most of this demand has come from new tenants and healthy expansions by existing companies already in the market. The warehouse/distribution segment dominated the market with more than 2.0 million square feet of year-to-date absorption, while the general industrial sector trailed far behind with 54,000 square feet of absorbed space. R&D/flex space saw a return of supply with more than 434,000 square feet of negative net absorption so far for the year. Tight market conditions translated into record-level asking rental rates that pushed past the $9.00/SF mark for the first time in the region's history, increasing $0.55/SF from one year ago to $9.05/SF.



South Florida Office Market Report
3Q19
Download the PDF
South Florida Industrial Market Report
3Q19
Download the PDF

Local Market Contact:

General Research Inquiries: