MIAMI—The Miami-Dade office market continues its growth at a steady and significant pace, where demand is increasing coupled with limited new construction, leading to increasing rental rates overall. So says Donna Abood, principal and managing director of Avison Young.
What else does she see for the fourth quarter? Abood tells GlobeSt.com three sectors have been active in leasing office space in Miami-Dade: legal, financial, and health care. She anticipates this will be consistent in the fourth quarter of 2015.
“From first quarter 2015 to second quarter 2015, vacancy declined from 11.7% to 11.2%, demonstrating increasing demand for space, even as rental rates continue to rise,” Abood says. “We anticipate the vacancy to decline at the same pace by end of the fourth quarter.”
Abood also has her finger on the pulse of rental rates, which she says grew 1.8% from first quarter 2015 to second quarter 2015. That puts rents at $30.58 per square foot per year. She predicts an additional 2% growth in rental rates by the end of 2015.
“Construction of new office space is ramping up during 2015, though there have been few deliveries as of mid-2015,” Abood says. “There have been a total of 6 buildings completed during the first half of 2015, with approximately 131,000 square feet delivered.”
As a point of reference, she notes, there is over 98 million square feet of office space throughout the entire Miami-Dade market. With that, she offers a final word:
“The end of 2015 is likely to see occupancy continue to improve as will rental rates,” Abood says. “Demand is anticipated to outpace new supply.”
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