CBRE Market Outlook State of Florida Third Quarter 2013
By cnews Date posted: October 29, 2013
CBRE 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
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