The office market in Miami-Dade County had a steady start with a vacancy rate below 10 percent and a positive net absorption. Compared to first quarter 2016, vacancy is 90 basis points lower and absorption is 3 times higher, which is indicative of the demand for office space in Miami-Dade County.
Broward County’s suburban office markets fared better than the CBD this quarter. Overall, Broward County vacancy rates decreased by 10 basis points and rental rates increased by 50 basis points to $26.66 per square foot. A softening of the Downtown Fort Lauderdale office market is indicative of a shift toward the suburban office market as soaring rents
have become too expensive for some tenants that do not have a necessity to be in Downtown.
Market indicators this quarter reflect a slow but stable office market in Palm Beach County. Limited new development has helped maintain steady vacancy levels at 12.2 percent and has put upward pressure on gross rental rates, particularly at Class A buildings. Class A rental rates increased by 200 basis points to $33.50 per square foot quarter-over-quarter and overall rates increased by 50 basis points to $28.16 per square foot.
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