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Statewide Trends: Florida Net Absorption (Millions of SF)
Statewide Trends: Florida Net Absorption (Millions of SF)
Statewide Trends: Florida Net Absorption (Millions of SF)
Net absorption in Floridas office markets recorded nearly 6.5 million sq. ft., significantly outpacing 2014 levels by over 3.8
million sq. ft. Four office occupier sectors that led 2015 leasing activity in Florida included: insurance carriers and
insurance-related activities, legal services, businesses support services and financial activities. Vacancy rates stood at 14.9%
at the close of the fourth quarter, tightening considerably year-over-year by 240 basis points (bps). Strong leasing activity
pushed the statewide average asking lease rate to $25.22 per sq. ft., up nearly 3% year-over-year.
Florida Net Absorption (Millions of SF)
Miami
Job growth in office-using sectors (i.e. professional and business services) has increased demand for space, while minimal
construction has limited the amount of new space available. As a result, vacancy has declined and asking lease rates have
increased for existing space. Vacancy declined to 12.7% in Q4 2015, a reduction of 190 (bps) year-over-year. Average
asking lease rates for Class A space increased year-over-year with a 5.1% improvement in the CBD and a 6.3% gain in the
suburban markets. Year-to-date net absorption totaled over 1 million sq. ft.
Miami Net Absorption -vs- Total Vacancy
Broward County
Broward Countys office market finished 2015 with net absorption of 763,691 sq. ft. The most active office occupier sectors
during the year included software publishers, insurance carriers, business support services and legal services, which
predominately occupied space in the suburban submarkets. Fourth quarter vacancy was 15.5%, a year-over-year decrease of
80 bps. Lease rates in the Downtown CBD increased 4.2% and suburban rates increased 1.0% year-over-year.