Total vacancy rate Average asking rent
Miami Office Market
Source: Cushman & Wakefield
Miami office market
Cushman & Wakefield reported that 330,000 square feet of new construc-
tion was completed in the Miami-Dade County office market during 2017.
About two-thirds of that space had been preleased. There was another
800,000 square feet under construction at the start of 2018, with 54 per-
cent of the space already leased.
Overall lease rates in fourth-quarter 2017 increased 6 percent year over
year, to $38.16 per square foot, and Class A spaces topped $46 per square
foot. The overall vacancy rate continued to dip, reaching 12.1 percent as
of year-end 2017, Cushman & Wakefield said.
A CBRE report from this past third quarter said employment growth, rent
growth and access to capital were fueling a surge of investor confidence
in Miami’s office market. Miami’s population and job growth were outpacing larger markets, such as Chicago, Houston and Washington, D.C.,
What the locals say
“While there is a decent pace of apartments continuing to
come on line, they seem to be leasing, as are other categories like self-storage. Most of the retail sector seems to
be project-specific and tenant-driven in nature, hence we
are not seeing much in the way of spec building for retail.
… The demand for well-located buildings has been strong.
The downtown cores of both St. Petersburg and Tampa have
continued to progress, as have other major MSAs (metropol-
itan statistical areas) in Florida.”
By Neil Pierson
The Sunshine State is growing by leaps and bounds.
Florida, commonly called the Sunshine State, became the 27th state in March
1845. Slavery quickly become a contentious issue as African-American slaves
comprised nearly half of the state’s population by 1850, and Florida was one
of the first states to secede from the Union in 1861.
Prior to statehood, Florida became a U.S. territory in 1822 and Tallahassee
was chosen as the state capital in 1824. The home of Florida State Universi-
ty, Tallahassee has grown considerably over the past three decades, nearly
quadrupling its footprint to 103 square miles between 1980 and 2016.
According to U.S. Census Bureau data, Florida ranked fifth among the fastest-
growing states between July 2016 and July 2017, boosting its population by
1.6 percent to nearly 21 million. Florida is the third most-populous state in
the U.S. behind only California and Texas.
Florida cities locked down four of the top five spots on a 2017 Forbes list of
the nation’s fastest-growing metropolitan areas. They included Cape Coral/
Fort Myers; Orlando/Kissimmee/Sanford; Deltona/Daytona Beach/Ormond
Beach; and Jacksonville. The Forbes rankings were based on a combined
measurement of growth in population, employment, wages, gross metro
product and home values.
Jacksonville is Florida’s largest city, with 880,000 residents as of July 2016,
and its metro area has a population of almost 1.5 million. The Port of Jacksonville provides many transportation-related jobs, and multiple U.S. Navy
facilities give Jacksonville the third-largest military presence in the nation
behind San Diego and Norfolk, Virginia.
Tourism is a key industry in the Sunshine State, supporting more than
875,000 jobs in 2016, according to a report from business-consulting com-
pany Oxford Economics. Tourism accounted for 9. 5 percent of the state’s
gross domestic product (GDP) and 17.1 percent of total employment in 2016.
Spending by out-of-state visitors in 2016 grew by 2.7 percent, to $112 billion.
The state’s tourism industry — particularly in the Florida Keys — is trying to
recover after Hurricane Irma hit this past September. Monroe County, which
encompasses Key West and surrounding islands, generates $2.7 billion
annually in tourism-related economic activity and 54 percent of the jobs in
the area are generated through tourism.
Florida’s real GDP of $815.1 billion in 2016 ranked fourth in the nation behind
California, Texas and New York. Its GDP grew by 3 percent in 2016 — twice
the national average and the fifth-highest figure in the nation behind Wash-
ington, Oregon, Utah and New Hampshire.
According to U.S. Department of Labor statistics, the state’s largest employ-
ment sectors as of this past November were trade, transportation and utili-
ties; professional and business services; education and health services; and
leisure and hospitality. n
Principal, Monroe & Giordano, Tampa