While nationally, the vacancy rate is projected to decline from 17% at the end of 2003 to 16% a year later, the Miami-area vacancy rate is expected to remain stable at 15.2% at the end of both 2003 and 2004. The report projects declines in the Miami vacancy rate to 14.3% at the end of 2005 and 14.1% at the end of 2006.

The vacancy rate in the central business district is anticipated to go from 13.3% at the end of last year to 16.8% at the end of this year, then drop to 16.4% at the end of 2004. This is a slightly different pattern than with the suburban vacancy rate, which is forecast to increase from 14.6% at the end of 2002 to 15.2% this year then grow again to 15.5% next year.

Also according to the report, the average gross rental rate in the Miami-area office market is expected to drop by 2% this year to $22.76 per sf. This compares to about $23.20 last year. The rate should increase the next three years, to about $22.90 in 2004, $23.20 in 2005 and $23.60 in 2006.