Office Market Hits Bottom; Recovery is Six Months Away

MIAMI-A dramatic rise in sublease space and speculative construction completions have pushed overall vacancy rates in Miami’s office market to 16%, up 4.6% over the last 12 months, according to a third quarter office market report from Cushman & Wakefield of Florida Inc.

The central business district vacancy level is at 14% as average rents dip to about $23 per sf. Outside the CBD, rents are in the $22 per-sf range.

Only 39% of the 1.1 million sf of the space completed since the beginning of the year is occupied. Another 1.9 million sf is under construction, most of which is expected to be completed in the next 12 to 18 months. Sublease space has risen more than 50%, to 675,000 sf.