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CBRE Market Outlook State of Florida Third Quarter 2013

CBRE Market Outlook State of Florida Third Quarter 2013

CBRE_logo_white_BGCBRE Research is pleased to release the Third Quarter 2013 MarketViews covering office, industrial and retail property types for the State of Florida.

Below are key findings of the reports:

Office Properties(Read full report)

  • Statewide vacancy decreased 140 basis points from Q3 2012 when it was 20.3% compared to a Q3 2013 vacancy of 18.9%.
  • Asking lease rates increased by $0.39 in Q3 2013 with the current average rate for the state of $23.77 per sq. ft.
  • Florida’s CBD office markets are trending positive in terms of vacancy at 18.1% in the current quarter compared to 19.2% in Q3 2012, however lease rates have slipped $0.29 per sq. ft.
  • Florida’s sales activity for Q3 2013 was greater than 2.1 million sq. ft., with 19 transactions and sales volume greater than $261.8 million. Comparatively, in Q3 2012 the state posted more than 1.8 million sq. ft. in 19 transactions totaling $186.1 million.
  • Florida office deliveries year-to-date totaled approximately 450,000 sq. ft., with just over 400,000 sq. ft. under construction.
  • The year-over-year unemployment rate of change for Florida is negative 1.6%. Florida retains the lead in unemployment decline from a national perspective.

Industrial Properties(Read full report)

  • At the close of Q3 2013, approximately 2.2 million sq. ft. was delivered year-to-date statewide with 1.75 million sq. ft. coming from the Miami, Broward and Palm Beach markets.
  • Statewide vacancy is declining at a similar pace. Vacancy rates in North and South Florida decreased 30 basis points over Q2 2013.
  • Rents are trending stable from a state perspective. North Florida rates are flat year-over-year. South Florida rates grew by $0.05 per sq. ft. in Q3 2013.
  • Absorption continues to be positive for the state, with approximately 7 million sq. ft. leased year-to-date. Florida’s sales activity for Q3 2013 was greater than 5 million sq. ft., with 45 transactions and sales volume greater than $262.9 million.

Florida’s employment by industry shows moderate year-over-year gains in wholesale trade and transportation/ warehousing/ utilities of 1.5% each.

Retail Properties (Read full report)

  • Statewide vacancy decreased 10 basis points from Q3 2012, when it was 8%, compared to a Q3 2013 vacancy rate of 7.9%.
  • Asking lease rates increased by $0.64 in Q3 2013 year-over-year with the current average rate for the state of $18.27 per sq. ft.
  • Florida’s sales activity for Q3 2013 covered more than 3.8 million sq. ft. with 25 transactions and sales volume greater than $565.7 million. Transactions are up in the current quarter compared to Q2 2013, when 2.6 million sq. ft. changed hands in 28 transactions valued at $431.5 million.
  • Florida retail deliveries year-to-date total 1,058,310 sq. ft. with 2,315,441 sq. ft. under construction.

All CBRE Research reports are available at www.cbre.com/research