Cushman & Wakefield reports that asking rental rates for Class A office space throughout the state increased 5.4 percent over the past year on strong leasing activity and absorption. Demand for space has pushed the direct vacancy rate in Miami/Dade down by 5.3 percentage points over the past five years. Jacksonville had the lowest askings rate of all the major metros at $19.79 per square foot, followed by Orlando ($23.50), Tampa-St. Petersburg ($25.97), Broward ($32.28), Palm Beach ($37.45) and Miami-Dade ($40.75).
“Growth in rental rates across the state since the last cycle have been driven mostly by gains in the suburban markets,” said Larry Richey, senior managing director at Cushman & Wakefield. “For the South Florida and Tampa central business districts, rents are comparable or slightly higher, while in Orlando and Jacksonville, there is still significant room to grow.” Richey also stated, “Overall, limited new inventory and strong economic fundamentals increase the likelihood of positive momentum for the office sector across the state.”
