According to CB Richard Ellis office market reports for the third quarter 2007, the Palm Beach County vacancy rate rose to 11.9% during the quarter, up from 8.4% recorded during the third quarter of 2006. In Broward County, the vacancy rate was 9.5% during the quarter, up from 8.3% a year ago. Despite the rise in vacancies, rental rates are on the rise or stabilizing. In Palm Beach County, average asking rental rates increased from $18.93 to $19.90 per sf from the third quarter of 2006 to the third quarter of 2007. In Broward County, the overall direct average asking rates for class A properties remained stable at $17.71 per sf and, for class B properties, dipped slightly to $14.98 per sf.

Despite the shifting conditions, experts are predicting that job growth will continue to buoy demand for office space, although at a slower pace than recent years. According to a Marcus & Millichap Real Estate Investment Services office research report, employers in Palm County were expected to have generated 17,700 jobs in 2007, reflecting a 3% increase over the previous year. In Broward County, experts were predicting the creation of 7,900 jobs during the year, reflecting a 1% increase.

According to the Bureau of Labor Statistics, the national unemployment rate increased 0.6 percentage points to 4.9%. Unemployment in the state of Florida is 4.2%, which is a full percentage point increase from record low unemployment earlier in the year. Palm Beach County's unemployment rate rose to 4.7%, up from 3.3% and Broward County's rate rose to 3.8% up from 2.9%.