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Market Report

South Florida Office Market Report

Second Quarter 2019

Vacancies and Rents Improve Even as Development Expands in Some Southeast Florida Markets


After moderated period, construction ramps up in West Palm Beach and Fort Lauderdale while fundamentals carry momentum. A subdued development pipeline and consistent demand for space has substantially improved office operations in West Palm Beach over the past several years. The market’s vacancy rate has dropped from a cycle high of 20.7 percent in 2010 to under 14.0 percent this year, the most substantive recovery in the region. Availability will decline sharply again in 2019 despite a year-over-year rise in deliveries, as the metro’s largest completions are already fully leased. A similar expansion to the construction pipeline in Fort Lauderdale will hold vacancy flat this year but not impede rent growth. Monthly rates are appreciating at a rapid clip here as biotech and business development companies like Ultimate Software absorb more space.

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