Office market picks up steam, gained strength.

The Office market has gained strength throughout Miami-Dade County and the outlook is bright based on good employment growth, limited new construction, scarcity of premium space and new-to-market tenants. Office vacancy fell to 16.1% in the first three months of 2014 from 16.5% in the fourth quarter of 2013, with an average asking lease rate of $30.72 per square foot in the first quarter, up 29 cents quarter over quarter, with highest asking prices in the Central Business District. Asking rates reached $60 per square foot for Class A sublet space at the Southeast Financial Center in downtown Miami. Miami’s Class A segment has posted a relatively steady reduction in vacancy since midyear 2010, declining from over 22% to the current direct rate of 16.6%. Leasing activity in general continues to be captured by Class A buildings, where two-thirds of the city’s total transactions have occurred” in the past 15 months. As the market continues to improve, with rents rising and vacancy falling, except in Class B buildings in Brickell (fluctuating in the 17% to 18% vacancy range), the vacancy rate for Class B buildings in Brickell might be artificial, possibly due to construction inconvenience in that area and landlords aiming at short-term leases because they plan to tear down buildings, she said. Generally speaking, Miami-Dade has a strong office market, particularly in the Central Business District, since 600 Brickell is just 65% leased. The flight of capital out of Latin America, so many projects being built with 50% cash down and the increased demand. New construction is low for the anticipated demand, with 128,850 square feet of new space expected to open in the Central Business District in 2015 and Brickell City Centre not due to be finished until 2018. Market demand drivers are coming together at the same time in an intricate and positive way that herald the arrival of Miami as a true global destination, said Ken Krasnow, South Florida managing director for CBRE. He said all the sectors – including residential, hospitality and retail – are healthy, and the improving office market is just one part of the equation. (http://www.miamitodaynews.com/2014/04/23/office-market-picks-steam). Lazaro Lopez Fortune Int'l Realty (786) 525-9430 http://www.MiamiPropertyConsultant.com