Vacancy rates are beneath the 10% threshold and rents are risingat a robust pace. The vacancy rate was forecast to end the year at8.5% and asking and effective rents are projected to climb 8.7% to$28.88 per sf and $24.84 per sf respectively in 2007. During theyear, the median price of office properties climbed 10% to $243 persf, according to a Marcus & Millichap Real Estate InvestmentServices report.

DTZ Rockwood Miami office managing director John Bell is equallybullish on the Miami office market. "Despite the housing marketheadlines, South Florida continues to grow at roughly double thenational pace and is forecast to do so in the foreseeable future,"Bell says. "While a slight housing-induced dip in growth isforecast in 2008, job growth is expected to accelerate over thenext five years."

Miami continues to lead Fort Lauderdale in low office vacancyrates. In addition, given the five-year forecast of 50,000 newoffice jobs, 12 million sf of demand will need to be met. The stateof the residential housing market and an abundance of options nearurban job hubs may support growth in key office submarkets, Bellsays.