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Office vacancy rates nationwide fell one-tenth of a point at the end of the 3^rd quarter compared with the end of the 2^nd quarter according to REIS, a real estate research firm. "We're in the early innings of a recovery here," Reis economist Ryan Severino said.  While the vacancy rate fell, the average effective office rents increase by a factor of 5 (+.5%) from the drop in the office vacancy rate to $22.39 per square foot. This is up 1.6% from a year earlier.

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This year continues to be a long, slow road towards recovery for your landlord.  Some buildings are out-performing their competition while others continue to falter.

The market in general continues to be flat.  Most of the lease transactions are renewals and we are seeing very few new companies moving into Miami.  Those that are moving into Miami are modest in size.  Expansions are equally modest if at all.

Tenants are continuing to be savvy and if they elect to move, they are headed to the nicest building they can afford.  Many landlords are continuing to quietly provide generous packages of both free rent and tenant improvements.

The statistics show a lackluster year for the Miami Airport submarket.  Although Class A absorption for 2Q is almost 48,000 sf,  the Class B and C product had 38,000 sf of negative absorption.

Coral Gables, although a smaller submarket, has slowly been recovering.  It's vacancy peaked in 2008.  Once 396 Alhambra is completed at the end of this year, it will add another 172,000 sf  (3%) of Class A space to Coral Gables' inventory.

Every lease transaction that I am involved in has unique elements to be considered during the process.  I offer my clients thoughtful, strategic guidance during this process.  Contact me today so we can discuss your specific situation.

Guest Post by our Miami Office Space Tenant Representative  (contact)

With an increase of 80 points from 1Q2011 and a rank of 86th out of 132 U.S. metro markets nationwide the Ft. Lauderdale office market has not changed much throughout the second quarter. The vacancy rate currently sits at 19.9% similar to the rates of Oakland/East Bay CA at 19.3%, Denver, CO 19.8%, Naples, FL at 20.2%, and Cincinnati, OH at 20%.

We believe the state of the office market will remain at its current position throughout the upcoming years even as the economy improves. Reason being is because as businesses become more efficient through advances in automation and technology they are able to run with few employees; and given the reduced amount of employees there is less demand for office space. There has also been a trend of businesses lowering their occupancy costs by choosing office designs with less square feet of occupancy per employee.

For additional information on the South Florida office market including offices for sale or lease, as well as tenant representation Contact Us.

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