"Over the next decade, the entire CBD will be dramatically changed--both physically and demographically, as significant construction and planned development is now under way within and around the Downtown area, stretching north to the Omni and south to Brickell," says Jones Lang LaSalle senior vice president Scott Strickland. He points to the second quarter's 8.74% vacancy in the six-million-sf Downtown submarket and the 11.5% vacancy in the 5.35-million-sf Brickell submarket, both of which reflect sublease space. Class A vacancy Downtown is 6.32%; Brickell's class A space is 8.23% empty. Total vacancy was more than 11% a year ago.

Average class A rents Downtown are $31.46 per sf. Brickell's average quoted rents for class A space are $36.12 per sf. The highest second-quarter quote was $41 per sf at Courvoisier Centre. "If current market conditions prevail, rent growth will continue over the next two years, with larger users being forced to accept creative solutions in their existing buildings," Strickland predicts.

"For the near term, existing landlords will not be facing the threat of new competing office development, setting the stage for further rent growth," Strickland says. No new projects have started in the first half and only 559,000 sf of new product is under way in the seven suburban submarkets totaling 24 million sf.