04:35 am
June 23, 2017

Leasing velocity slows, but rents still rise

While still squarely in positive territory, second-quarter office and industrial leasing velocity continued to slow across Broward and Miami-Dade counties, according to the latest CBRE market data. But demand still outpaces inventory across the board, which drove rents up and vacancies down.

Palm Beach County, whose real estate recovery has lagged, finally broke out with an uptick in office space absorption and an impressive surge in industrial absorption.

Its second-quarter industrial absorption nearly quadrupled year-over-year, with 115,807 square feet of additional empty spaces filled. But when compared to where total absorption was at the midpoint of last year, it was still lower – 477,894 square feet in 2016 vs. 704,114 square feet in 2015.

The county has seen a wave of new industrial facilities during the past two years. Even so, second-quarter rental rates shot up more than 8 percent compared to the previous year, and vacancy tumbled to 3.5 percent, the lowest in the region.

“We have new construction in central and northern West Palm Beach,” says Jeff Kelly, executive vice president of CBRE. “New development requires higher lease rates to justify cost to build. I see users getting sticker shock, but if they have a space they need to fill, the new construction deals are getting done at higher rents than tenants have been used to paying.”

In the office sector, the lack of new construction gave a lift to rent and occupancy across the region. Much of that can be attributed to two major lease deals at the Boca Raton Innovation Campus: MDVIP, a concierge health care provider, leased 49,369 square feet and Avid Technology, a broadcast and film platform provider, leased 23,630 square feet.

“I think we are on a slow but sure downward trend,” Kelly says. “Challenges are the threats of larger vacancies coming on the market.” As a chief concern, he cited the uncertainty swirling around the future of Office Depot and its 600,000-square-foot headquarters in Boca Raton.

“To catch up, we know there will not be any new construction for some time; we just have to be careful of big vacancies coming on the market,” Kelly says. “And we need continued leasing, which has to be a mix of companies expanding and new to market leases.”

In Broward County, second quarter leasing activity was steady, but failed to reverse a slowing first-quarter leasing trajectory, an indicator that post-recession leasing might be peaking. Restrained development and continued job growth still helped push rents higher and office vacancies lower by nearly a full percentage point, compared to 2015.

There were no new openings of industrial buildings in Broward in the second quarter after more than 1.2 million square feet in the past five quarters. But major projects, such as Bridge Sunrise, a 306,855-square-foot development at Interstate 95 and Sunrise Boulevard, are on the way.

So far, steady leasing activity is holding Broward’s industrial vacancy year-over-year to 6.1 percent, and rents rose 3 percent.

Miami-Dade County is where the region’s industrial development pipeline is flowing like a geyser. About 2.5 million square feet of industrial boxes are under construction with nearly 90 percent poised to open this year.

The completion of the Panama Canal expansion has yet to propel Miami-Dade industrial absorption to 2015 levels, which, in the first six months, were about half of the same period last year.

“No noticeable increase as of today,” says Michael Silver, first vice president of CBRE. “In the future, more perishables like fruit and vegetables will come into PortMiami, requiring additional cooler type space within warehouse facilities.”

The county has opened more than 1.5 million square feet of industrial facilities since 2013, but that has not dinged its hearty market. Vacancies fell in the second quarter to 3.6 percent and rents rose 5 percent compared to the second quarter of last year.

Miami-Dade’s office market has seen the most post-recession development in the region, but the construction volume has remained limited. Much of the development has been tucked into larger mixed-use projects. Year-to-date, 2016 office space absorption is down 5 percent compared to last year. Once again, rent and vacancy fundamentals continued to improve.

“Given the tight market conditions in South Florida coupled with employment and population growth, we can expect to see further increases in rental rates and decreases in vacancies,” says Ken Krasnow, executive managing director for Colliers International in South Florida. “We expect the market to quickly absorb new supply in both the CBD [central business district] and major suburban markets. This trend is likely to continue until new inventory balances demand.” 

Freelance writer Darcie Lunsford is a former real estate editor of the South Florida Business Journal. She is the senior VP for leasing at Butters Group and is avoiding a conflict of interest in her column by not covering her own deals.

0916 CommercialREalEstate 2 0916 CommercialREalEstate 3

130 comments

  • you are truly a excellent webmaster. The web site loading velocity is amazing.
    It seems that you’re doing any distinctive trick. Also, The contents are masterpiece.
    you have done a wonderful task on this topic!

    Reply
  • Hello just wanted to give you a quick heads up and
    let you know a few of the images aren’t loading properly.
    I’m not sure why but I think its a linking issue.
    I’ve tried it in two different browsers and both show the same results.

    Reply
  • I absolutely love your blog and find many of
    your post’s to be just what I’m looking for. can you offer guest writers to write content to
    suit your needs? I wouldn’t mind creating
    a post or elaborating on a number of the subjects you write regarding here.
    Again, awesome weblog!

    Reply
  • I do accept as true with all the concepts you’ve
    presented for your post. They’re very convincing and will definitely work.
    Nonetheless, the posts are too short for novices.

    Could you please extend them a little from next time?

    Thanks for the post.

    Reply
  • A person essentially assist to make critically posts I might
    state. That is the first time I frequented your website page and up to now?

    I surprised with the research you made to make
    this particular submit amazing. Wonderful task!

    Reply
  • hey there and thank you for your info – I have definitely
    picked up something new from right here. I did however expertise several
    technical points using this web site, as I experienced
    to reload the website a lot of times previous to I could get it
    to load correctly. I had been wondering if your web hosting is OK?
    Not that I am complaining, but sluggish loading instances times will very frequently affect your placement in google and could damage
    your high quality score if advertising and marketing with Adwords.
    Well I am adding this RSS to my e-mail and can look out
    for much more of your respective fascinating content.

    Make sure you update this again very soon.

    Reply
  • We’re a group of volunteers and opening a new scheme
    in our community. Your web site provided us with valuable info to
    work on. You’ve done an impressive job and our whole community
    will be grateful to you.

    Reply
  • Hmm it appears like your site ate my first comment (it was extremely long) so
    I guess I’ll just sum it up what I had written and say, I’m thoroughly enjoying your blog.
    I too am an aspiring blog blogger but I’m still
    new to the whole thing. Do you have any points for rookie blog writers?

    I’d definitely appreciate it.

    Reply
  • Usually I do not learn post on blogs, but I would like
    to say that this write-up very pressured me to try and do so!
    Your writing taste has been amazed me. Thanks,
    very nice post.

    Reply
  • Just desire to say your article is as amazing. The clearness for your publish is just
    great and that i could think you are knowledgeable on this subject.
    Well along with your permission let me to grasp
    your RSS feed to stay updated with imminent post. Thank you 1,000,000 and please continue
    the enjoyable work.

    Reply
  • you are in point of fact a good webmaster. The website loading velocity is incredible.
    It kind of feels that you’re doing any distinctive
    trick. In addition, The contents are masterwork. you’ve done
    a magnificent process on this topic!

    Reply
  • I have been surfing online more than 3 hours today, yet I never found any interesting
    article like yours. It is pretty worth enough for me.
    In my opinion, if all site owners and bloggers
    made good content as you did, the internet will be a lot more
    useful than ever before.

    Reply
  • I do not know if it’s just me or if perhaps everyone else
    experiencing problems with your website. It appears as though some of the text on your
    posts are running off the screen. Can somebody else please comment and let
    me know if this is happening to them too? This could be a issue with
    my internet browser because I’ve had this happen previously.

    Cheers

    Reply
  • It is appropriate time to make a few plans for the
    future and it is time to be happy. I have read this publish and if I may I desire to recommend you
    some fascinating issues or suggestions. Maybe you could write next articles referring to this
    article. I want to read more things approximately it!

    Reply
  • Yesterday, while I was at work, my sister stole my iphone and tested to see if it can survive a forty foot drop,
    just so she can be a youtube sensation. My apple ipad is now
    broken and she has 83 views. I know this is completely off topic
    but I had to share it with someone!

    Reply
  • I do consider all of the concepts you’ve introduced to your post.

    They are very convincing and can certainly work.
    Nonetheless, the posts are too quick for newbies.
    Could you please lengthen them a bit from subsequent time?
    Thank you for the post.

    Reply
  • Very good site you have here but I was curious about if you knew of any message boards that
    cover the same topics talked about here? I’d really love to be a part of online community where
    I can get suggestions from other experienced individuals that share the same interest.

    If you have any suggestions, please let me know.
    Kudos!

    Reply
  • Attractive section of content. I just stumbled upon your web site and in accession capital to assert that I
    acquire actually enjoyed account your blog posts. Any way I will be subscribing
    to your augment and even I achievement you access consistently quickly.

    Reply
  • I’m amazed, I have to admit. Seldom do I encounter a blog that’s both equally educative and entertaining, and without a doubt,
    you have hit the nail on the head. The problem is something that not enough folks are speaking intelligently about.

    I’m very happy that I came across this in my hunt for something concerning this.

    Reply
  • Pretty nice post. I just stumbled upon your weblog and wanted to say that I have truly enjoyed surfing around your blog posts.
    In any case I will be subscribing to your feed and I hope you write again soon!

    Reply
  • Hi! I could have sworn I’ve been to this website before
    but after browsing through some of the post I realized
    it’s new to me. Anyhow, I’m definitely glad I found
    it and I’ll be bookmarking and checking back frequently!

    Reply
  • My partner and I absolutely love your blog and find the majority of your post’s to be what
    precisely I’m looking for. Does one offer guest writers to write
    content for you personally? I wouldn’t mind creating a post or elaborating on a few of the
    subjects you write about here. Again, awesome web log!

    Reply
  • Yesterday, while I was at work, my sister stole my iphone and tested to
    see if it can survive a 40 foot drop, just so she can be a
    youtube sensation. My iPad is now broken and she has 83 views.

    I know this is totally off topic but I had to share it with someone!

    Reply
  • Hi there! I could have sworn I’ve been to this web site before
    but after browsing through a few of the articles I realized it’s
    new to me. Anyways, I’m definitely happy I came across it and I’ll
    be book-marking it and checking back often!

    Reply
  • Have you ever considered publishing an e-book
    or guest authoring on other blogs? I have a blog centered on the same
    topics you discuss and would really like to have you share some
    stories/information. I know my readers would appreciate your work.
    If you’re even remotely interested, feel free
    to shoot me an e-mail.

    Reply
  • Very good blog! Do you have any hints for aspiring writers?

    I’m hoping to start my own site soon but I’m
    a little lost on everything. Would you recommend starting with a free platform like WordPress or go for a paid option? There are so many
    choices out there that I’m totally confused .. Any suggestions?
    Thank you!

    Reply
  • Fantastic goods from you, man. I’ve understand your stuff
    previous to and you’re just too great. I actually like what
    you’ve acquired here, certainly like what you’re
    saying and the way in which you say it. You make it entertaining and you still take care of to keep it wise.
    I cant wait to read far more from you. This is really a wonderful web site.

    Reply
  • When someone writes an article he/she retains the plan of a user
    in his/her mind that how a user can know it. Therefore that’s why this article is amazing.
    Thanks!

    Reply
  • I absolutely love your blog.. Great colors & theme.

    Did you create this web site yourself? Please reply back
    as I’m looking to create my own website and want
    to find out where you got this from or what the theme
    is called. Many thanks!

    Reply
  • Excellent goods from you, man. I have understand your stuff previous to and you’re just too
    great. I really like what you’ve acquired here, certainly like what you are
    saying and the way in which you say it. You make it entertaining and you still care for to keep it sensible.
    I can not wait to read far more from you. This is actually a terrific site.

    Reply
  • Thank you a lot for sharing this with all of us you really recognize what you’re speaking approximately!
    Bookmarked. Please additionally consult with my website
    =). We could have a link alternate arrangement between us

    Reply
  • After looking over a number of the blog articles on your website, I truly
    appreciate your way of writing a blog. I book-marked it to my bookmark website list and will be checking back soon. Please visit my web site as well
    and let me know what you think.

    Reply
  • You actually make it seem so easy with your presentation but I
    find this matter to be really something which I think I
    would never understand. It seems too complex and very broad for me.
    I am looking forward for your next post, I’ll try to get the
    hang of it!

    Reply
  • Hi! I’m at work browsing your blog from my new iphone 4!

    Just wanted to say I love reading through your blog and
    look forward to all your posts! Keep up the outstanding work!

    Reply
  • Hey would you mind sharing which blog platform you’re
    using? I’m going to start my own blog in the near future but I’m having a difficult time making
    a decision between BlogEngine/Wordpress/B2evolution and Drupal.
    The reason I ask is because your design seems different then most
    blogs and I’m looking for something unique. P.S
    Apologies for being off-topic but I had to ask!

    Reply
  • Heya! I just wanted to ask if you ever have any problems with hackers?

    My last blog (wordpress) was hacked and I ended up losing months of hard work
    due to no data backup. Do you have any solutions to protect against hackers?

    Reply
  • When I originally commented I appear to have clicked the -Notify me
    when new comments are added- checkbox and from now on every time a comment is added
    I recieve 4 emails with the same comment. Is there a way you are able to remove me from that
    service? Cheers!

    Reply
  • Hi there would you mind sharing which blog platform you’re
    using? I’m planning to start my own blog in the near future but I’m having a
    difficult time deciding between BlogEngine/Wordpress/B2evolution and Drupal.
    The reason I ask is because your design seems different then most blogs and I’m looking for something completely unique.
    P.S Sorry for being off-topic but I had to ask!

    Reply
  • Hello! I could have sworn I’ve been to this site
    before but after checking through some of the post I realized it’s new
    to me. Anyhow, I’m definitely delighted I found it and I’ll be book-marking and checking back frequently!

    Reply
  • Pretty portion of content. I just stumbled upon your weblog and in accession capital to claim that I
    acquire actually enjoyed account your weblog posts.
    Anyway I will be subscribing to your augment or even I success you access consistently quickly.

    Reply
  • Thanks for a marvelous posting! I quite enjoyed reading it, you might be
    a great author. I will ensure that I bookmark your blog and definitely will come back someday.
    I want to encourage you to definitely continue your
    great writing, have a nice evening!

    Reply
  • After I originally left a comment I appear to have clicked
    the -Notify me when new comments are added- checkbox and now every time a comment
    is added I get 4 emails with the same comment. Perhaps there
    is a means you are able to remove me from that service?
    Cheers!

    Reply
  • Excellent weblog here! Additionally your website a lot up very fast!

    What host are you the use of? Can I am getting your associate link on your
    host? I wish my website loaded up as fast as yours lol

    Reply
  • What i do not realize is in fact how you are no longer actually much more
    smartly-preferred than you may be now. You are very intelligent.
    You know therefore considerably with regards to this subject, made me in my view believe
    it from a lot of various angles. Its like women and men don’t
    seem to be fascinated unless it is one thing to accomplish with Lady gaga!
    Your own stuffs excellent. At all times maintain it up!

    Reply
  • Aw, this was an exceptionally nice post. Taking the time and actual effort to make a
    really good article… but what can I say…
    I hesitate a whole lot and don’t seem to get nearly anything
    done.

    Reply
  • Hello! Quick question that’s completely off topic. Do you know how to
    make your site mobile friendly? My site looks weird when browsing from my apple iphone.
    I’m trying to find a template or plugin that might be able to resolve
    this issue. If you have any suggestions, please share.
    Thanks!

    Reply
  • Sweet blog! I found it while browsing on Yahoo News.
    Do you have any tips on how to get listed in Yahoo News?
    I’ve been trying for a while but I never seem to get there!
    Cheers

    Reply
  • Hi would you mind stating which blog platform
    you’re using? I’m going to start my own blog in the
    near future but I’m having a difficult time choosing between BlogEngine/Wordpress/B2evolution and Drupal.
    The reason I ask is because your design and style seems different
    then most blogs and I’m looking for something completely unique.
    P.S My apologies for being off-topic but I had to ask!

    Reply
  • I think this is among the most important information for me.
    And i am glad reading your article. But want to remark on some general things, The
    site style is wonderful, the articles is really great : D. Good job, cheers

    Reply
  • It’s amazing to pay a visit this website and reading the views of all mates
    regarding this piece of writing, while I am also zealous of getting know-how.

    Reply
  • Hey! Do you know if they make any plugins to assist with Search Engine Optimization? I’m
    trying to get my blog to rank for some targeted keywords but I’m not seeing very good success.
    If you know of any please share. Cheers!

    Reply
  • hey there and thank you for your info – I have definitely picked up anything new from right here.

    I did however expertise a few technical points using this web site, since I experienced to reload the
    website many times previous to I could get it to load properly.
    I had been wondering if your hosting is OK? Not that
    I’m complaining, but slow loading instances times
    will sometimes affect your placement in google and could damage your high quality score if ads and marketing with Adwords.

    Anyway I’m adding this RSS to my e-mail and could look out for a lot more of your respective exciting content.
    Make sure you update this again soon.

    Reply
  • Somebody necessarily help to make severely posts I might state.

    This is the very first time I frequented your web page and
    to this point? I surprised with the analysis you made to make this particular
    post incredible. Great task!

    Reply
  • Great beat ! I wish to apprentice while you amend your site, how
    could i subscribe for a blog site? The account aided me a acceptable deal.

    I had been tiny bit acquainted of this your broadcast
    offered bright clear idea

    Reply
  • First of all I would like to say terrific blog!
    I had a quick question in which I’d like to ask if you do not mind.
    I was interested to find out how you center yourself and clear your
    mind prior to writing. I have had a hard time clearing my
    thoughts in getting my thoughts out. I truly do take pleasure in writing but it just seems like the first 10 to 15 minutes are usually lost just
    trying to figure out how to begin. Any suggestions or tips?
    Appreciate it!

    Reply
  • I am really enjoying the theme/design of your website.

    Do you ever run into any browser compatibility issues? A number of my blog visitors have complained
    about my blog not operating correctly in Explorer
    but looks great in Opera. Do you have any solutions to help fix this problem?

    Reply
  • I’m not sure where you are getting your information,
    but good topic. I needs to spend some time learning more or understanding more.
    Thanks for magnificent information I was looking for this info
    for my mission.

    Reply
  • You actually make it seem so easy with your presentation but I find this topic to be really something which I think I
    would never understand. It seems too complicated and extremely broad for me.

    I am looking forward for your next post, I will try to get the hang of it!

    Reply
  • Hello, Neat post. There’s a problem with your website in internet explorer, may check this?
    IE nonetheless is the market leader and a large component of folks will omit your
    fantastic writing because of this problem.

    Reply
  • This design is spectacular! You obviously know how to keep a reader entertained.
    Between your wit and your videos, I was almost moved to start my own blog (well, almost…HaHa!) Wonderful job.

    I really loved what you had to say, and more than that, how you presented it.
    Too cool!

    Reply
  • It’s a shame you don’t have a donate button! I’d certainly donate to
    this excellent blog! I guess for now i’ll settle for bookmarking and adding your RSS feed to my Google account.
    I look forward to brand new updates and will
    talk about this blog with my Facebook group.

    Chat soon!

    Reply
  • My developer is trying to convince me to move to .net from
    PHP. I have always disliked the idea because of
    the expenses. But he’s tryiong none the less. I’ve been using WordPress on a number
    of websites for about a year and am concerned about switching to another platform.

    I have heard great things about blogengine.net. Is there a way I can import all my wordpress content into it?
    Any kind of help would be really appreciated!

    Reply
  • I have been browsing on-line more than 3 hours lately,
    yet I by no means discovered any attention-grabbing article like yours.
    It is pretty value enough for me. In my view, if all
    website owners and bloggers made just right content as you probably did, the web shall be
    a lot more helpful than ever before.

    Reply
  • Thank you a bunch for sharing this with all people you
    actually know what you’re talking about! Bookmarked.
    Please also discuss with my web site =). We may
    have a hyperlink change agreement between us

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *