South Florida Office Market Report
| Average Asking Rent (Price/SF) | $37.88 |
| Vacancy Rate (%) | 14.7% |
| Net Absorption (SF) | 283,821 |
The region felt its first recovery since the impacts from the pandemic began, with over 283,000 square feet of positive net absorption recorded during the third quarter of 2021. This was the first time all three markets in South Florida, along with all three class segments, saw demand outpace supply since the effects from the global shutdown began to surface during the same period one year ago. Palm Beach County continued to lead the region in demand growth, while Miami-Dade and Broward Counties lagged behind with modest improvements. The Class A segment recorded most of the growth, with approximately 177,000 square feet of absorbed space, while the Class B sector followed, with over 100,000 square feet of positive net absorption. The lower-tier Class C office segment saw its second consecutive quarter of demand growth, but still at moderate levels. Asking rents continued to hold, with a slight increase from the previous quarter and an increase of 5.4% from one year ago, to $37.88/SF. The Class A segment did see a slight dip from the previous quarters rate of $43.40/SF, but still remained $1.38/SF higher from the rate recorded one year ago. This can be attributed to the decrease in available space from newer Class A office space delivered as more available space in second-tier Class A buildings have more of an impact on the average rate. Development remained disciplined, with only one building completed in South Florida for the third quarter and another 2.0 million square feet remaining under construction. Healthy pre-leasing of new construction has taken place and should limit significant increases to overall vacancy throughout the region.
Leasing activity has noticeably picked up from the start of second-quarter 2021, as the previous quarters saw a noticeable drop in lease deals in relation to the economic downturn as a result from the global shutdown from COVID-19. South Florida saw approximately 7.0 million square feet of activity since the beginning of the year. This is a significant improvement from the 4.2 million square feet leased during the same time one year ago. Investment sale also improved dramatically, with approximately 8.0 million square feet sold at the close of third-quarter 2021 for a combined total of $2.7 billion in comparison with the 2.3 million square feet sold one year ago for $609.3 million. Miami-Dade continued to lead the region in tenant demand and sales as Palm Beach County followed closely in the number-two spot for both; Broward County remained in the third spot in leasing and investment activity.
Download South Florida Office Market Report 3Q21
South Florida Industrial Market Report
| Average Asking Rent (Price/SF) | $9.74 |
| Vacancy Rate (%) | 4.0% |
| Net Absorption (SF) | 3,488,807 |
South Florida experienced its strongest quarter in demand ever recorded, with approximately 3.5 million square feet of positive net absorption, surpassing the 3.4 million square feet reported during the second quarter of 2010, after the region began its recovery from the global financial crisis. Over 8 million square feet of industrial space was absorbed during the first three quarters, already breaking the 7.0 million square feet of total net absorption record seen during 2015. All three counties saw improvements from previous quarter performances, with Miami-Dade continuing to lead South Florida in overall demand. 3.2 million square feet of absorbed space came from the warehouse/distribution segment, while general industrial space moved into the number-two position with 418,000 square feet, just beating out the R&D/flex segment with 358,000 square feet of positive net absorption.
Download South Florida Industrial Market Report 3Q21