Overall net absorption totaled about 1.1 million per sf. In office property sales last year, the Miami company found some weakness. Sales of office buildings (at least 40,000-sf) totaled about $407 million, a decrease from the $530 million that Terranova surveyed for the prior year. The price paid per square foot also dropped last year by about 2% to $80.46 from $82.18 in 1999.
Results of the survey compare with an estimated vacancy rate of 10.9%, which Cushman & Wakefield of Florida Inc. published in a recent report; and 9.19%, which the Miami offices of Trammell Crow Inc. also previously reported.
Market demand pushed the overall average asking rental rate to $22.04 per sf last year, up from $21.38 per sf recorded the prior year. In comparison, Trammell Crow estimated the overall asking rate at about $22.36 per sf last year.
In its survey, Terranova found that office vacancies decreased in six of 13 county submarkets. Vacancies in those 13 submarkets ranged from a low of 2.6% in the Coconut Grove section of Miami to 17.31% in South Miami.Average asking rents increased in eight of the 13 submarkets. Rates ranged from a high of $26.99 per sf on the Brickell Avenue financial district in Miami to a low of $17.02 per sf along the Biscayne Boulevard submarket. The largest increase in asking rents occurred in Miami Beach--$23.47 per sf, up $4.67 per sf.
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