ORLANDO—The asking rental rates for class A office space across Florida increased 5% year-over-year thanks to strong leasing activity and absorption. In fact, all major markets posted solid boosts in asking rents.

That's according to Cushman & Wakefield's Year-End 2015 Florida Statewide Rental Report (FLRR). The report shines a light on current office asking rates in major markets across Florida and compares them to rates documented at the height of the last real estate cycle in 2008 and 2009.

“The office markets in Florida ended 2015 on a high note,” Larry Richey, Cushman & Wakefield senior managing director and Florida market leader, tells GlobeSt.com. “Rents grew across the board with the vacancy rates approaching levels not seen since before the financial crisis. New construction, particularly in South Florida, is being fed by strong confidence in the positive market fundamentals. Rents in South Florida and the Tampa CBD are comparable or slightly higher than what we saw during the last cycle, while in Orlando and Jacksonville, there is still significant upside.”

Specifically, asking rents in Miami-Dade and Broward had the highest percentage jumps year-over-year with rents rising by 6.3% in both markets. According to the report, asking rates in Miami-Dade continue to rise and ended the year 7% higher than the high water mark for rents in the last real estate cycle. Vacancy for class A office space has dropped 7 percentage points over the past five years.

Meanwhile, rents in markets in the northern part of the state continue to improve but have yet to surpass the rent peaks from the last cycle. Tampa, Orlando, and Jacksonville were off by 4.2%, 8.1%, and 5.3%, respectively. Additional occupancy increases on limited new construction suggest demand going forward could potentially move rental rates higher in the short term.

“Across the state, we are seeing new projects on the heels of rising tenant demand and a lack of functional high-tech space that tenants today desire,” Cushman & Wakefield Florida research manager Chris Owen, who believes the market will remain positive in 2016, tells GlobeSt.com. “New office construction started in markets that have largest increases in rents, and it's starting to trickle to other markets as vacancy drops to pre-recession levels.”

ORLANDO—The asking rental rates for class A office space across Florida increased 5% year-over-year thanks to strong leasing activity and absorption. In fact, all major markets posted solid boosts in asking rents.

That's according to Cushman & Wakefield's Year-End 2015 Florida Statewide Rental Report (FLRR). The report shines a light on current office asking rates in major markets across Florida and compares them to rates documented at the height of the last real estate cycle in 2008 and 2009.

“The office markets in Florida ended 2015 on a high note,” Larry Richey, Cushman & Wakefield senior managing director and Florida market leader, tells GlobeSt.com. “Rents grew across the board with the vacancy rates approaching levels not seen since before the financial crisis. New construction, particularly in South Florida, is being fed by strong confidence in the positive market fundamentals. Rents in South Florida and the Tampa CBD are comparable or slightly higher than what we saw during the last cycle, while in Orlando and Jacksonville, there is still significant upside.”

Specifically, asking rents in Miami-Dade and Broward had the highest percentage jumps year-over-year with rents rising by 6.3% in both markets. According to the report, asking rates in Miami-Dade continue to rise and ended the year 7% higher than the high water mark for rents in the last real estate cycle. Vacancy for class A office space has dropped 7 percentage points over the past five years.

Meanwhile, rents in markets in the northern part of the state continue to improve but have yet to surpass the rent peaks from the last cycle. Tampa, Orlando, and Jacksonville were off by 4.2%, 8.1%, and 5.3%, respectively. Additional occupancy increases on limited new construction suggest demand going forward could potentially move rental rates higher in the short term.

“Across the state, we are seeing new projects on the heels of rising tenant demand and a lack of functional high-tech space that tenants today desire,” Cushman & Wakefield Florida research manager Chris Owen, who believes the market will remain positive in 2016, tells GlobeSt.com. “New office construction started in markets that have largest increases in rents, and it's starting to trickle to other markets as vacancy drops to pre-recession levels.”