MIAMI—What can we expect in Broward County's office market in 2016? GlobeSt.com turned to Greg Martin, a principal with Avison Young specializing if office leasing, to get some predictions—and he has plenty.
"In 2016, expect to see continued increases in rental rates in Broward and throughout South Florida as new ownership groups implement their underwriting assumptions and vacancies decrease," Martin tells GlobeSt.com. "The market will experience mostly internal, organic growth and absorption from the existing tenant base due to relocation expenses and business interruption costs associated with a move steadily rising."
As Martin sees it, employee density and increased parking needs are current challenges that landlords and tenants will still face in the coming year while companies seek to lower overhead costs by leasing with more efficient facilities. The burden on landlords to provide efficient building systems and more parking, he says, will impact property asset values.
"In terms of new product, construction within the office sector will be limited as developers continue to struggle with increasing construction costs and return requirements," Martin says. "Factors such as pending interest rate hikes and residential development seeming to be the preferred product type for the market's most desirable land parcels will also have an impact on construction."
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