 |
| Larry Richey |
ORLANDO, FL – Cushman
& Wakefield announced the release of its Mid-Year 2016 Florida Statewide
Rental Report (FLRR).
This report highlights current office asking rates in
major markets across the state and compares them to rates documented at the
height of the last real estate cycle (2008–09).
Key findings in the
Mid-Year 2016 FLRR include:
The latest jobs report
shows that Florida added 244,500 new jobs over the past year, an increase of
3.0 percent. Office-using employment increased by more than 60,000 jobs,
driving demand for office space.
Statewide, full-service
asking rental rates for Class A office space increased 6.6 percent over the
past year to $32.27 with four of six markets posting rental gains of more than
$2.00 per square foot (PSF) over the past four quarters.
Statewide, full-service
asking rents for Class A space have surpassed rent peaks from the last cycle.
Since the end of 2009,
Florida’s Class A office market has seen 11.3 million square feet of available
space absorbed by new and existing tenants, representing a 6.8 percentage point
drop in the direct vacancy rate through the first half of 2016.
Cushman & Wakefield
continues to be bullish on the office market statewide,” said Larry Richey, Managing Principal and
Florida Market Leader. “In the short term, rents jumped significantly on
ever-tightening availability options.
“We are acutely challenged
in several markets in providing space options for larger tenants, especially in
Class A space in the CBDs. The shift in demographics to more urban,
live-work-play environments and tenant demand should build confidence with
developers and lenders for new construction.”
 |
| Chris Owen |
“Supply side constraints
in most markets are pushing office market fundamentals close to the record
highs from the previous decade,” Owen said.
“Besides Miami and some smaller
projects across the state, the bulk of new major office construction has been build-to-suits.
The steady lease up of new construction in Miami indicates, that with the right
project, space will be leased.”
The Florida Statewide
Rental Report is intended to provide market intelligence for property owners,
occupiers and prospects.
The report documents the gross average asking rate for
the market and a short-term indicator noting the year-over-year change in that
rate.
Historical market performance is depicted by a clear and concise up or down indicator. This indicator shows rental rate growth as a percentage as well as the highest asking rent achieved in each market during the last real estate cycle.
Historical market performance is depicted by a clear and concise up or down indicator. This indicator shows rental rate growth as a percentage as well as the highest asking rent achieved in each market during the last real estate cycle.
Rates are full-service and
based on Class A properties. The index gives a macro view of the overall
markets and how they compare. It also provides a statewide rental figure and
its fluctuation over the past 12 months.
For a complete copy of the company’s news release,
please contact:
David A. Meyer
Owner
Meyer Media
+ 1 407 489 7488
@CushWake on Twitter
