At the end of the quarter, the vacancy rate was 8.72%, the lowest vacancy rate since the 2Q 2001. There was 241,588 sf of positively absorbed space in the second quarter, the report states. "Space continues to be absorbed and new product is not coming on line quickly," CB Richard Ellis senior associate Susan Thomas tells GlobeSt.com.

Average asking rents have increased across the board in Miami, with lease rates increasing 1.3 percentage points from last quarter for an average rate of $25.88 per sf. Class A office space experienced a 2.2% increase, class B a 3.4% increase and class C a 2.2% increase during the quarter.

There are several factors that are having a positive influence of the market. First, there is only 130,000 sf under construction in Miami-Dade County. This is buoyed by tenant demand, which has continued to remain strong. In fact, Citibank and UBS Swiss Bank still have a need for an excess of 100,000 sf in Miami's CBD. "Area landlords have taken advantage of market conditions while having no adverse consequences, by either raising their asking lease rates or by becoming less flexible in allowing rental concessions," according to the report.

Top lease transactions during the quarter included Chevron Texaco's 33,000-sf lease at 2333 Ponce de Leon, Nokia's 25,550-sf lease at 703 Waterford and Invention Technologies' 21,000-sf lease at Doral Center. Top sales transactions included Triple Net Properties' $73.7-million purchase of 18851 NE 29th Ave., Andalex Group's $62-million purchase of 1601 Washington Ave. and Tamach Gables Square LLC's $23.4-million acquisition of 75 Valencia.

"It's a landlord's market and I think that will continue for the foreseeable future," Thomas says.