South Florida’s office space market continues to heat up with practically no end in sight. It’s a trend that reflects the area’s increasing demand for tech, finance, and other business space as well as the ebb and flow of the economy. And this increase in office construction and renovation puts building owners in a powerful position.
According to Miami’s real estate publication, The Real Deal, “Hundreds of thousands of square feet” were leased out in the first quarter of 2016. If the trend continues, competition for available space and the accompanying rents are likely to soar.
New Office Construction and Vacancies are Down
Competition for available office space continues to climb as more businesses move and expand into an area where new construction hasn’t kept up with demand. In turn, leasing costs have increased throughout the market. Miami-Dade rents for Class A office space reached $47.16 per square foot in the first quarter, an increase of 0.4 percent.
About 611,312 square feet of office space was leased in the early part of 2016, bringing the total vacancy rate down to 12.5 percent. That’s a 1.7 percent drop for the quarter. Broward and Palm Beach counties, while not as in-demand as Miami-Dade, are also enjoying a more robust leasing market. In Broward, rents rose 6.5 percent; Palm Beach rents nudged slightly higher as well, and both markets saw vacancies dip.
InFort Lauderdale, businesses are inching out of the suburbs and moving into major downtown skyline properties around the Las Olas Boulevard area, such as New River Center and Tower 101. New investors also have a keen eye turned toward the local leasing environment. Some commercial buildings are sold as much as 95 percent stabilized. With rents climbing higher, it’s a good time to be a building owner or developer.
While new construction is still an option in Broward and Palm Beach, space is very limited in Miami. This means that for building owners, now’s the time to renovate your building.
Office Renovation Makes a Good Thing Better
Renovation builds on what’s already a great opportunity for property owners. New growth in office construction might be stagnant, but improvements make existing properties even more appealing. GSD Contracting has been at the heart of South Florida commercial construction and renovations for years, and we’re recognized as an industry leader.
With experience in building new office buildings and transforming prime real estate, our projects strive to meet the aesthetic needs of the community and the changing technical needs of the business and its customers. For example, co-working space, such as the DaskLux luxury office suites project that we managed, maximizes rental occupancy. It honors the integrity of each business that occupies the office while facilitating collaboration. And the Citrix Systems project in Fort Lauderdale illustrates the way that renovations can forge ahead without disrupting day-to-day business operations.
Demand for South Florida office space shows no signs of slowing down. And where some businesses had shifted out into the suburbs during the recession, many of them are finding their way back to more prestigious locations. For property owners, the time is ripe for maximizing a good thing.
Trust Your Office Construction and Renovation Projects to GSD Contracting
GSD Contracting has the proven experience to lead your project from beginning to end. We create workspaces that fit an evolving company culture, the aesthetic needs of the community and the evolving way that South Florida does business. If you have an office construction or renovation project, we want to learn more. Contact us online or call 954.961.4222.