In the plus column, the Brickell and Coral Gables submarkets are showing improvement, according to the report. In Brickell, declining sublease space is putting less downward pressure on direct rental rates, the report states. And while the direct vacancy rate is 19.4%, class A space is very desirable. And direct vacancy rates should start to drop as new product is well-received. In Coral Gables, leasing activity is focused in the class A product, which previously had experienced declining average asking rates. This submarket also is attracting attention of tenants in other submarkets that are willing to move if it makes sense economically.

Elsewhere, the Downtown and airport submarkets are in a holding pattern, the report adds. Leasing is flat Downtown, where there is little new absorption. In the airport submarket, class A average asking rates remain stable. Attractive rates and large spaces available have helped the submarket experience the most leasing activity in the county.

The softest submarket, the report states, is Miami Beach, due to the fall of the dot.com and entertainment/tourism firms and a supply-and-demand imbalance.