Many signs in the report point toward a potential recovery by the end of the year. They include a drop in the overall vacancy rate, significant leases and expansions, absorption of subleases in several submarkets and a slowing down of new construction.

The Broward office market, which has absorbed a lot of its space, ended the quarter with a 75,915-sf positive overall absorption. This compares to a negative absorption of 124,962 sf a year earlier.

The overall vacancy rate for office space in the county decreased some, from 20% in second quarter 2002 to 19.6% the same time this year. The largest decline in vacancy rate was seen in the Northeast Broward submarket, where the vacancy rate was nearly cut in half from 16% at the end of second quarter 2002 to 9.2% the same time in 2003. The significant drop is attributed in part to that submarket's posting the county's lowest direct rental rate, $19.18, adding to the area's leasing appeal.