MIAMI—Office vacancy rates continued to decline in most major US markets during the fourth quarter of 2013. So says CBRE.
“The Q4 2013 results for Miami's office market are very encouraging,” says Mary Jo Eaton, executive managing director of CBRE Florida. “While office has lagged other markets during the recovery, we are finally beginning to see signs of positive growth in this sector and a return to equilibrium that places landlords and tenants on equal footing.”
Nine of the 13 largest markets showed lower office vacancy, and 11 of the 13 markets saw higher average asking rents. Miami experienced the largest quarter-over-quarter decline in office vacancy of all the major US markets, shedding 80 bps to arrive at 16.6%. That's the lowest since 2010.
“The steady recovery of the US office market continues,” says Brook Scott, CBRE's Interim Head of Research, Americas. “As economic activity improves, investors have had an opportunity to increase rents in most markets. The US industrial market offers particular opportunity for investors seeking to capitalize on improving international trade and a resilient domestic consumer.”
The US industrial market also continued to show improvement in the fourth quarter 2013, according to CBRE. Eight of the 12 largest industrial markets had lower vacancy, fueled by demand from third-party logistic companies, the food service sector, home construction and manufacturing.
Miami held its position as the third-strongest industrial market in the US, with an availability rate of 7.8%. Roughly 3.5 million square feet of industrial space in Miami was absorbed in 2013.
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