joins national trend toward record year
reports show Miami-Dade's office market is riding high on the wave
of high-tech industries, with 2000 shaping up to be a record-breaking
year a prospect that seems likely for most North American markets.
first half of 2000 clearly defined South Florida's emergence as the
high-tech, Internet capital of Latin America, a status that is fueling
demand for office space across Miami-Dade County," says Cushman
& Wakefield's MarketBeat Update.
& Wakefield's numbers show 728,615 square feet of office space has
been absorbed to date a 52% increase over mid-year 1999 figures.
to RealData Information System's second quarter report, the largest
absorptions were in Airport West (359,481 square feet); the central
business district, not including Brickell (167,739 square feet), and
Coral Gables (137,714 square feet).
a result, Cushman & Wakefield reports, the countywide vacancy rate
dropped 2.6 percentage points to 11.3% over the past 12 months
the lowest registered in more than a decade.
activity in the central business district" which, for
Cushman & Wakefield, includes Brickell "driven by tenant
expansions and space requirements within the telecommunications industry
aided the decline in vacancy," says MarketBeat Update.
West continues its long reign at the top of the charts among the county's
suburban markets. An overview prepared by Insignia-ESG reports Airport
West has captured almost a quarter of total year-to-date absorption.
America continues to fuel businesses in this location," the Insignia-ESG
report says, "much of which is centered around e-commerce, distribution
and the general telecommunications industry."
West also remains the center of office construction activity outside
the central business district, Cushman & Wakefield reports, with 595,500
square feet under way, including Opus South's Doral Concourse I, a
240,500-square-foot development, and The Hogan Group's 247,000-square-foot
703 Waterford building.
Insignia-ESG notes, all of the space now under construction in Airport
West is class A, showing an overall trend of users looking for quality
quoted full-service lease rate of $28.50 a square foot for 703 Waterford
is the highest yet for the class A sector, Insignia reports.
demand from multinationals has lessened vacancies in Coral Gables,
Cushman & Wakefield reports, but several projects in construction
should offer relief.
statistics show year-to-date absorption in Coral Gables has already
reached 82% of the annual rate.
picture is much the same in Miami Beach, where Cushman & Wakefield
says the entertainment and Internet industries are creating most of
the demand and construction activity is "in full force."
with a number of mixed-use projects offering new office space at intervals
over the next several years, shows the highest jump in rental rates
over the past 12 months, according to RealData 5.98%, with
the mean quoted rent now at $26.05 a square foot and the highest at
report on the North American office market from Oncor International
puts Miami squarely in the middle of the national scene. At $69 a
square foot, class A rates are highest in San Francisco. Philadelphia
weighs in with the lowest at $18.08.
throughout North America particularly their central business
districts are growing fat on leases signed by technology and
dot-com companies," Oncor reports, adding that volatility within
these industries "could unsettle markets with the force of a
if the market can remain strong, this report concludes "and
Oncor analysts think it will then the year 2000 will indeed
be a record-breaker."