According to a Studley first quarter 2006 South Florida office market report, decreasing availability and increasing rents is a trend that has been occurring for 11 quarters. During the first quarter, the vacancy rate was 11.2%, down by 1.2 percentage points for the quarter and by 3.5 percentage points for the year. South Florida's class A availability rate was 13.2%, which reflects a decrease for the both the quarter and the year, the report notes.

According to the CB Richard Ellis Florida market perspective for year-end 2005, all six Florida markets tracked posted suburban vacancy rates well below the US rate of 14.6% for fourth quarter 2005. Much of the development and leasing activity is in the suburbs where lower rents and more expansion room can be found. Central business districts are also strong, with Miami experiencing a 12.7% vacancy rate, which is below the US average.

Brokers note that the real estate fundamentals are strong in South Florida, with continued demand for space and little product on the market. They add that many available development sites are being acquired for residential, rather than commercial use. "Broward County is going like gangbusters," says Jeff Holding, managing director of the Broward County office for CB Richard Ellis. "Over the next few months it's going to be a tough road for tenants."