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South Florida Market Reports

South Florida Office Market Report

Average Asking Rent (Price/SF)       $34.11
Vacancy Rate (%)       11.2%
Net Absorption (SF)       52,103

South Florida's office market performed modestly in 2019, as demand just outpaced supply in the fourth quarter to bring year-to-date net absorption to more than 585,000 square feet. This was a slight decrease from the 636,000 square feet of net absorption from 2018. Broward County led South Florida in demand, contributing to 75.0% of total net absorption, while Palm Beach County's office market experienced its first year-over-year correction. The region's vacancy rate rose 20 basis points from the previous quarter, but fell 30 basis points year-over- year to 11.2%. The office market showed signs of continued growth, marking a full decade of improved fundamentals after the Great Recession. The market's lower vacancy rate and limited speculative construction continued to strengthen the influence of landlords during lease negotiations. The overall average asking rent increased $1.32/SF year-over-year, exceeding $34.00/SF for the first time in recorded history. The region's asking average for high-end Class A space also broke new ground, pushing past $40.00/SF at the close of fourth-quarter 2019. Two construction completions during the fourth quarter added 243,000 square feet of new office inventory, bringing year-to-date projects to just under 500,000 square feet finished during the year. Another 14 buildings combining for more than 3.0 million square feet of new office product were under construction at year-end. Miami-Dade led with half of all new construction, as Broward County trailed with 885,000 square feet of construction activity. Palm Beach County had three buildings totaling approximately 622,000 square feet underway.

South Florida Industrial Market Report

Average Asking Rent (Price/SF)           $8.99
Vacancy Rate (%)             4.6%
Net Absorption (SF)        364,571

The past year saw demand outpace supply to close out the decade with 10 years of consecutive positive absorption, a feat the region has never seen before. More than 2.2 million square feet of positive net absorption was posted for all of 2019, as the industrial sector appeared to show signs of deceleration from the 4.7 million square feet absorbed one year ago. This was the most modest annual growth since the recovery began in 2010, with the newest inventory delivered during a 12-month period. New industrial product completed throughout the region in 2019 totaled 5.9 million square feet, pushing vacancy rates up 90 basis points to 4.6% from this time last year. Notably, overall vacant space remained below the 5.0% mark to signal continued tight market conditions.



South Florida Office Market Report
4Q19
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South Florida Industrial Market Report
4Q19
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