Why Decision Makers Are Crossing Their Fingers

MIAMI—The reality right now is that the Miami office market has been rather flat although optimism is high. That's where Donald Cartwright, senior vice president with JLL, exclusive leasing agent for Southeast Financial Center located in the heart of Miami's CBD, started our conversation.

“Last year was fueled by companies that weathered the economic storm, placing a stake within their current locations as renewals and expansions dominated the deal flow,” Cartwright tells GlobeSt.com “I wouldn't view this as a slowdown but rather a slight market correction.”

As Cartwright sees it, there are still numerous unknown variables lurking in our economies. Although everyone remains bullish on Miami, he says they are on the sidelines temporarily until the landscape becomes clearer.

“There have been a lot of deals but not a lot of positive absorption,” Cartwright says. “Although current vacancy rates seem low, there appears to be a lot of space about to come online.”

Even still, he says, we are better today than we were three years ago. He points to the appeal of Miami and our economic conditions as still highly favorable.

“It's true that volume has decreased a bit, but deals are getting done—and at strong rental rates, we simply have not yet felt the effect of those deals,” Cartwright says. “The focus certainly has seemed like musical chairs as renewals, expansions and 'flight' have been the drivers, but I see this as creating a galvanized foundation to attract new to market tenants and a higher demand for growth.”

As it should be, he says, the current economy is the main factor driving current decisions in Miami's commercial real estate market. From where he sits, he sees decision makers crossing their fingers hoping that there won't be any further huge dip.

“The stock market continues to fluctuate, interest rates are going to rise and we are choosing a new president next year,” Cartwright says. “These factors could end up being positive, but currently, no one's crystal ball can clearly say for certain.”