Net migration in Florida is still positive according to theCensus Bureau, which estimates that the statewide population hadincreased by an annual average of about 310,740 residents between2000 and mid-2007, to 18,251,243 residents. However, Florida hassuffered heavily from the housing bust, and Florida's populationgrowth was only slightly ahead of the national rate last year, atjust above 1%.

Vacancy rates in Broward County have risen substantially overthe past year, ending 2007 just below 6%, and another slightincrease is forecast throughout 2008. But South Florida is lessproblematic than other parts of the country, where vacancy rates insecondary markets regularly exceed 10%.

The occupancy trend will make it difficult for owners to pushrents higher and, more realistically, owners will have to work tosustain their current tenant mix. However according to Marcus &Millichap's 2008 Real Estate Investor Outlook, the asking rents inFort Lauderdale are forecasted to grow by 2.5% to $19.90 per sf,while effective rents advance 2.2% to $17.83 per sf.