Although widely perceived to be dominated by the tourism sector, Miami-Dade and Broward counties have grown into more diverse economies, which have driven activity in the commercial real estate market. Integra-Miami's latest survey of the commercial sectors of South Florida's market, as of the end of 2007, reflect the following observations.
In the tricounty area, rental rates are up to an average $28.88 per square foot compared to 2006 ($31.18 in Miami Dade, $25.86 in Broward). The overall vacancy rate has declined to a feasible 8.7 percent in Miami-Dade, 9.5 percent in Broward, and positive absorption of rental space totaled a healthy 528,781 square feet in both counties. Palm Beach was softer, however, with a year-end office vacancy rate of 12.7 percent and negative absorption of 845,178 square feet.
The condo-office (new and conversions) is trying again to compete with traditional rentable office space. The overall vacancy rate was 4.1 percent through 2007, tighter in Miami-Dade and Broward, with rates of 3.6 percent and 3.7 percent respectively. Lease rates have increased to $24.28 per square foot (triple net), topping an average of $30 in Miami-Dade. Positive absorption totaled about 2.6 million square feet over the last year in Miami-Dade and Broward.
Demand should continue for commercial uses that cater to the office use and industrial/distribution uses for expanding businesses that have established in South Florida and companies moving to South Florida that are in international commerce, financial services, life sciences, IT and telecommunications, film and entertainment, agriculture, professional services, aviation, and the visitor industries.
Vanessa Arellano Doctor
http://miamirealestateinc.com
