South Florida Office Market Report
3Q22
| Average Asking Rent (Price/SF) | $41.58 |
| Vacancy Rate (%) | 14.0% |
| Net Absorption (SF) | 101,175 |
The Tri-County area saw a moderate increase in tenant demand growth with over 101,175 square feet of positive net absorption at the close of the third quarter of 2022, resulting in a region-wide vacancy rate of 14.0%. Of the three South Florida markets, only Broward County landed in positive absorption territory, with 197,000 square feet. Miami and Palm Beach experienced contractions in absorption but were buoyed by several large lease transactions. Citadel put boots on the ground in Miami with a 97,000-square-foot lease for a five-year term until its permanent headquarters is completed. Chicago-based law firm Sidley Austin will be joining Citadel in the same building with a 57,000 square foot satellite office, marking Sidley’s first foray into the local market. Vacancies in the Palm Beach office market remain well below the 14.0% regional average, at 11.8%, followed by Broward and Miami at 14.0% and 15.0%, respectively. A breakdown by office segmentation reflects South Florida’s Class A properties lead, with 126,000 square feet of net positive absorption and a corresponding decrease in vacancy to 18.4% from 18.7% in the prior quarter. Class A average asking rents climbed to $47.31/SF, up from $45.54/SF in the second quarter of 2022 and $43.82/SF one year ago. South Florida’s Class B properties experienced a modest contraction in absorption of 8,800 square feet, yet vacancy held steady at 11.8%. Despite two straight quarters of negative absorption, Class B asking rents increased to $34.63/SF, up from $33.81/SF in the second quarter of 2022, and $32.58/SF one year ago.
Download South Florida Office Market Report 3Q22
South Florida Industrial Market Report
3Q22
| Average Asking Rent (Price/SF) | $12.06 |
| Vacancy Rate (%) | 3.5% |
| Net Absorption (SF) | 1,755,612 |
Infrastructure development and growth serving the Tri-County region, as it relates to industrial inventory and space needs, signals continued strength in the market. For example, Miami International Airport (“MIA”) witnessed its international freight increase 2.7% year-over-year, while domestic tonnage similarly grew 5.8%.Cargo shipments demonstrate a positive trend for the region and advantageous for warehousing space in particular. Miami-Dade commissioners are set to vote on several large cargo-related leaseholds at MIA. This development is being monitored by Newmark. Additional infrastructure news is reported on within this report, as it impacts South Florida’s industrial market.