SOUTH FLORIDA OFFICE MARKET OVERVIEW
The South Florida office market, comprising Miami-Dade, Broward and Palm Beach counties, is well on its way to recovery. The market is experiencing very healthy employment and economic fundamentals, and average rental rates remain a significant amount of new office construction and record investment sales pricing are promising signs of investors and occupier confidence in the market.
South Florida Office Market Supply & Demand
Market signals in Miami-Dade , Broward County and Palm Beach hint toward potential stabilization for the region With each market showcasing positive net absorption at the end of Q4-21, market fundamentals seem to be alleviating vacancy rates. Both Palm Beach and Broward County experienced a decline in vacancy rates during Q4-21, with Palm Beach experiencing the steepest decline of 15.7% YoY.
Among the three major office markets in the MSA, Palm Beach also ended
Q4 with the lowest vacancy, at 8.9%, while Miami-Dade and Broward County remained above 10%. It is also important to note that the slight uptick in vacancies seen in Miami-Dade is in part due to over 380,000 square feet of new office inventory being delivered to the market.
South Florida Office Investment
The South Florida office market broke several records in 2021 when it comes to sales activity.
Miami-Dade, Broward and Palm Beach achieved average per square foot pricing of $448.53, $238.23, and $307.93, respectively. With these record breaking quarters, the YoY growth for sale price per square foot was 5.72% for Miami-Dade, 3.05% for Broward County and Palm Beach at 7.92%.
The Palm Beach office market experienced a historical quarterly sales volume of $686 million, bringing the total for 2021 to $2.3 billion. Additionally, Miami-Dade experienced a record high total sales volume in 2021 of $2.5 billion.
View or download Franklin Street’s Q4-21 South Florida Office Market Report below: