South Florida Office Vacancy Falls To 13.2%

The South Florida Office market ended the fourth quarter 2013 with a vacancy rate of 13.2%.

The vacancy rate was down over the previous quarter, with net absorption totaling positive 737,966 square feet in the fourth quarter. That compares to positive 507,171 square feet in the third quarter 2013. Vacant sublease space decreased in the quarter, ending the quarter at 702,499 square feet.

Some of the most notable move-ins of 2013 include: Miami Herald Media Company moving into 158,266 square feet at 3511 NW 91st Ave; OneBlood, Inc. moving into 75,000 square feet at 3000 W Cypress Road; and Northern Trust moving into 64,820 square feet at 600 Brickell.

Rental rates ended the fourth quarter at $26.29, an increase over the previous quarter.

A total of two buildings delivered to the market in the quarter totaling 43,750 square feet, with 862,525 square feet still under construction at the end of the quarter.

This trend is compared to the U.S. National Office vacancy rate, which decreased to 11.5% from the previous quarter, with net absorption positive 25.62 million square feet in the fourth quarter. Average rental rates increased to $22.06, and 177 buildings delivered to the market totaling more than 11.7 million square feet.

Source:  CoStar