The lack of new office construction in Miami is allowing area landlords to chip away at the market’s vacancy rate, a new report from CBRE shows.
Miami’s office sector finished the second quarter of 2014 with a 15.5 percent vacancy rate, down from 16.2 percent during the first quarter and 17.3 percent during the second quarter of 2013. Landlords completed 160 lease transactions totaling 877,000 square feet during the quarter. The market’s average asking rental rate was $30.83 per square foot, an increase of 12 cents from the first quarter.
The largest transactions completed during the second quarter included Pricewaterhouse Coopers’ lease for more than 43,000 square feet at Wells Fargo Center and Prestige Health Choice’s deal for 49,230 square feet at 9250 Northwest 36th Street in Doral.
Only 280,103 square feet of office space is under construction in the entire Miami market. CBRE’s report predicts the eventual return of office development, but at a “more moderate and drawn-out” rate than past cycles.