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Office Space Filling Up Quickly but Sales Prices of Buildings are Heading South

MIAMI-Locally based Terranova Corp. estimates overall office vacancies dropped in 13 submarkets to 10.56% in 2000 from 10.7% in 1999. The average asking rent increased to $22.04 per sf from $21.38 per sf. Average prices paid for office assets dipped by 2% to $80.46 per sf from $82.18 per sf.

By David R. Corder | Updated on February 16, 2001

MIAMI-Demand for office space in Miami-Dade County pushed vacancy rates down and average asking rents up last year, a new Terranova Corp. survey shows. The estimated 10.56% vacancy rate for the year ended Dec. 31 still shows a continuing decline from the peak of 17.9% that the locally based real estate advisory firm recorded in 1993. Rates averaged 10.7% in 1999.

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.

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