A July 23, 2014 article from The Broward Daily Business Review reported that office vacancy rates in South Florida hit a 5-year low. The rebounding market is driven by rebounding employment and post recession surges. While the review article is available for subscribers only, it is also available courtesy of our friends at CRE-Sources
Rental rates in Downtown Miami have risen by 10 percent in the past year. Vacancies are down to 14.4 percent in Miami Dade County. In Broward County vacancies were reported to be 12 percent and 10 percent in Downtown Fort Lauderdale.
Fort Lauderdale’s Cypress Creek market was cited as a submarket that hasn’t yet felt the recovery with vacancies at 18.8 percent. Brenner’s Reese Stigliano is quoted in the article “Cypress Creek is losing tenants to Western Broward locations”
While the recovery is well underway, new office space inventory has been slow to materialize according to the article and Stigliano. “The market is stable and growing.” Stigliano said “The trend is going to continue, but nobody’s going to build speculative buildings until it’s more robust."
With space getting absorbed and minimal new construction, we can expect vacancies to continue to decline and rental rates to continue to rise.
Here at Brenner we are also expecting a turnaround in the Cypress Creek market. We are already seeing an uptick in activity at our property Cypress Commons at 1500 West Cypress Creek Road. I-95 remains the primary business corridor for South Florida. Historically, whenever vacancies have fallen in Downtown Fort Lauderdale and rents have risen, tenants have been drawn to the value and convenience of the uptown market. Firms like Citrix, Nipro and Zimmerman Advertising are currently expanding their Cypress Creek Headquarters. With the creation of “Envision Uptown,” a new group seeking to create a live-work environment along the Cypress Creek and Commercial Boulevard corridors we believe that Cypress Creek is an area to watch for the balance of 2014 and beyond.