A new report from Newmark Grubb Knight Frank shows positive net absorption for 18 consecutive quarters in Miami, an occupancy rate of nearly 85 percent and a market where demand continues to outpace supply.
“The rents have finally escalated enough that they can justify new construction,” said Patrick Duffy, a vice chairman in Newmark Grubb Knight Frank’s Miami office. “Usually in the past, new construction compressed pricing a little bit because we had new supply. But I don’t think we’ll see that this cycle.”
In Broward County, the resurgence rested on a spike in investment transactions. Buyers picked up 1 million square feet in the sale of six major office complexes, including the $119.5 million trade of the Royal Palm at Southpointe complex in Plantation and the $32.55 million sale of the Cypress Financial Center to Steelbridge Capital in September.
“Investment activity was in full swing,” Newmark Grubb reported.
Palm Beach County‘s office sector is at its strongest in two years with falling vacancy rates and rising demand. Tenants leased more than 405,000 square feet in 131 transactions at average asking rents of $28.12 per square foot. That pushed the vacancy rate to 19.2 percent, down from 20.3 percent a year earlier.
To download Newmark Grubb Knight Frank‘s complete reports, click on the following links:
Newmark Grubb Knight Frank-3Q14 Fort Lauderdale Office Market Report
Newmark Grubb Knight Frank-3Q14 Palm Beach Office Market Report
Newmark Grubb Knight Frank-3Q14 Miami Office Market Report
Source: DBR
