South Florida Office Vacancy Decreases To 14.5%

The South Florida Office market ended the fourth quarter 2011 with a vacancy rate of 14.5%.

The vacancy rate was down over the previous quarter, with net absorption totaling positive 849,415 square feet in the fourth quarter. Vacant sublease space decreased in the quarter, ending the quarter at 721,771 square feet.

Tenants moving into large blocks of space in 2011 include: ADT Security Services, Inc. moving into 171,490 square feet at 1501 Yamato Rd; Amadeus North America, L.L.C. moving into 105,137 square feet at One Park Square at Doral; and Keiser University moving into 90,000 square feet at Keiser University – Crossroads.

Rental rates ended the fourth quarter at $26.55, an increase over the previous quarter.

A total of one building delivered to the market in the quarter totaling 10,600 square feet, with 513,489 square feet still under construction at the end of the quarter.

This trend is compared to the U.S. national office vacancy rate, which decreased to 12.3% from the previous quarter, with net absorption positive 21.73 million square feet in the fourth quarter.

Source:  CoStar