Miami-Dade Office Market Has Reasons to Celebrate
The office market in Miami-Dade County continues to gain ground in terms of occupancy and rental rates. It ended the second quarter 2017 with a vacancy rate of 8.8 percent, according to Costar’s latest office market report. The vacancy rate was down over the previous quarter, with net absorption totaling positive 280,022 square feet in the second quarter. Vacant sublease space increased in the quarter, ending the quarter at 239,541 square feet. Rental rates ended the second quarter at $33.99, an increase over the previous quarter. A total of four buildings delivered to the market in the quarter totaling 109,145 square feet, with 2,077,495 square feet still under construction at the end of the quarter.
Net absorption for the overall Miami-Dade County office market was positive 280,022 square feet in the second quarter 2017, according to CoStar. That compares to positive 423,657 square feet in the first quarter 2017, positive 275,566 square feet in the fourth quarter 2016, and positive 390,896 square feet in the third quarter 2016. The Class-A office market recorded net absorption of positive 26,833 square feet in the second quarter 2017, compared to positive 156,671 square feet in the first quarter 2017, positive 96,278 in the fourth quarter 2016, and positive 157,917 in the third quarter 2016.
The Class-B office market recorded net absorption of positive 174,513 square feet in the second quarter 2017, compared to positive 216,948 square feet in the first quarter 2017, positive 79,051 in the fourth quarter 2016, and positive 149,399 in the third quarter 2016, according to CoStar.
The Class-C office market recorded net absorption of positive 78,676 square feet in the second quarter 2017 compared to positive 50,038 square feet in the first quarter 2017, positive 100,237 in the fourth quarter 2016, and positive 83,580 in the third quarter 2016. Net absorption for Miami-Dade County’s central business district was positive 17,744 square feet in the second quarter 2017. That compares to positive 29,818 square feet in the first quarter 2017, positive 44,107 in the fourth quarter 2016, and positive 42,676 in the third quarter 2016.
Net absorption for the suburban markets was positive 262,278 square feet in the second quarter 2017. That compares to positive 393,839 square feet in first quarter 2017, positive 231,459 in the fourth quarter 2016, and positive 348,220 in the third quarter 2016.
The office vacancy rate in the Miami-Dade County market area decreased to 8.8 percent at the end of the second quarter 2017. The vacancy rate was 9 percent at the end of the first quarter 2017, 9.3 percent at the end of the fourth quarter 2016, and 9.6 percent at the end of the third quarter 2016, according to CoStar.
Class-A projects reported a vacancy rate of 12.4 percent at the end of the second quarter 2017, 12.5 percent at the end of the first quarter 2017, 12.7 percent at the end of the fourth quarter 2016, and 13 percent at the end of the third quarter 2016. Class-B projects reported a vacancy rate of 9.2 percent at the end of the second quarter 2017, 9.4 percent at the end of the first quarter 2017, 9.9 percent at the end of the fourth quarter 2016, and 10 percent at the end of the third quarter 2016. Class-C projects reported a vacancy rate of 4 percent at the end of the second quarter 2017, 4.3 percent at the end of first quarter 2017, 4.6 percent at the end of the fourth quarter 2016, and 5 percent at the end of the third quarter 2016.
CoStar provides encouraging data and highlights a well-performing office market with a growing demand for office space in Miami-Dade.