LEASING HOLDS STEADY
Transaction volume fell slightly, decreasing from 1.5 million square feet (msf) to 1.4 msf, but was on track with the market’s long-term average. Tenants have leased 6.0 msf in 2018, down slightly from 6.1 msf leased in 2017.
AVAILABILITY UP SLIGHTLY
South Florida’s overall availability rate posted a slight increase, rising by 30 basis points to 17.5% in the fourth quarter. The Class A availability rate rose by 10 basis points to 18.7%.
RENT INCHES HIGHER
The overall average asking rent in South Florida ticked up by 0.2% to $33.80 and has jumped by 6.4% year-on-year. The Class A average rent increased by 0.6% to $38.53 and has registered a 5.8% year-on-year spike.
Office property sales during the first eleven months of 2018 totaled $2.6 billion, a 13.1% decrease compared to the same period of 2017.
"Steady demand for space in livable/walkable settings has sparked steady leasing in Downtown Fort Lauderdale and the Wynwood Arts District. Elevated labor and land costs have kept development restrained relative to prior cycles. In turn, leasing conditions are challenging for many tenants."Bob Orban, Senior Vice President