Demand for office space is growing in South Florida

Demand for office space is growing in South Florida

The South Florida commercial property market is noticeably rebounding after a little slump in winter months. The VTS Office Demand Index surged by 31.3% from February to March.

Major players in the local market also report greater activity. Kevin Will, Senior Associate at Foundry Commercial, says that the office vacancy rate in Winter Park, a neighbourhood to the north of Downtown Orlando, fell to a historic low of 2.6%. Kevin explains the demand in this area with its proximity to premium residential development for top managers and the small-town charm of this location with a chain of picturesque lakes. At the same time, a drive to the centre of Orlando takes only 10 minutes.

Adrian Rahimi, CIO at Tricera Capital, confirms that the office rental market is energizing in South Florida, specifically in West Palm Beach and Boca Raton. According to him, both tenants and landlords are now more prepared to sign long-term lease contracts.

The office property market in Miami-Dade County shows record-breaking performance in terms of net absorption, rental activity, the number of new properties, and the growth of rent prices. Miami is still one of the most in-demand US destinations for real estate investment, so the demand for office space has become more competitive, there are fewer vacant properties, and tenants’ activity has surged in all submarkets, shares Tere Blanca, Founder, Chairman and CEO at Blanca Commercial Real Estate.

Daniel Chaberman, Developer and Leasing Broker at Grupo Eco, says that this company has developed a high-end office product (Atlantic Village, a complex of restaurants and office spaces in Hallandale Beach) specifically to satisfy the growing demand. Some offices in the suburbs leave larger markets behind at both local and international level because of the influx of wealthy clients from other parts of the USA, Latin America, Russia, etc., Daniel explains. According to him, such clients wish to lease top-notch brand-new office premises close to their homes, their children’s schools, five-star restaurants, and entertainment venues, not in the very centre of a large city: no one enjoys the traffic.

This could launch a new trend in the commercial property market.

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