MIAMI—Market fundamentals have remained relatively steady over the past quarter across South Florida. So says Newmark Grubb Knight Frank's (NGKF) 2013 State of the Market report.

The office vacancy rate fell slightly across the board, with Broward County ending the quarter with the lowest level in the region at 16.1%. The industrial sector also performed well, with vacancy inching downward in both Broward County and Palm Beach. Miami recorded quite a bit of activity. However, vacancy remained relatively flat due to the delivery of the 335,000-square-foot Miami International Distribution Center.

“Across South Florida, over 1.1 million square feet of office leasing activity was tracked in the first quarter,” says Jon Bourbeau, vice chairman in NGKF's Miami office. “The majority of deals came from tenants already in the market in the form of expansions, renewals, relocations and, in some cases, contractions, but the pendulum appears to have swung with demand outpacing supply.”