X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

MIAMI-A dramatic rise in sublease space and speculative construction completions have pushed overall vacancy rates in Miami’s office market to 16%, up 4.6% over the last 12 months, according to a third quarter office market report from Cushman & Wakefield of Florida Inc.

The central business district vacancy level is at 14% as average rents dip to about $23 per sf. Outside the CBD, rents are in the $22 per-sf range.

Only 39% of the 1.1 million sf of the space completed since the beginning of the year is occupied. Another 1.9 million sf is under construction, most of which is expected to be completed in the next 12 to 18 months. Sublease space has risen more than 50%, to 675,000 sf.

“Hopefully, we have hit the bottom of the market,” Cushman & Wakefield Senior Marketing Director Pete Harrison, tells GlobeSt.com. “But I think we will be there for awhile. Corporate America will continue sitting on the sidelines until the end of first quarter next year. We hope for renewed activity in the second half of next year.”

Harrison says the current market can be compared to 1991 in many respects, except it’s not as bad. In 1991, he noted, vacancy rates were at the 25% to 30% level.

Harrison says the Downtown, Brickell and Coral Gables submarkets are in relatively good shape and should rebound next year. But the West Airport submarket, which has a lot of product available, could take two years to get its feet back on the ground. He noted that 40% of the sublease space is in the West Airport submarket.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.