South Florida Commercial Office Market (Third Quarter 2020)

COVID-19 continues to weigh on the commercial real estate market in South Florida.  While there are some positive signs in specific markets and sectors, overall the market has been adversely impacted by the pandemic. 

Following are the latest statistics for the commercial office market in South Florida (Palm Beach, Broward and Miami-Dade counties).

Click here to see more third quarter 2020 stats for all sectors of the commercial real estate market in South Florida.

The Palm Beach County Office Market

The 57 million square foot Palm Beach County commercial office market reports a third quarter 2020 vacancy rate of 10.6% (up from 10% in the Q2), an availability rate of 13.8% (up from 13.2% in Q2) and more than 1.17 million square feet of space under construction. 

The average rental rate across all classes of office properties was reported to be $35.15 per square foot which is an increase from the Q2 amount of $34.38.  Net absorption during the quarter was negative 768,000 square feet. 

Within the past 12 months there have been 239 commercial office transactions in Palm Beach County. The average sale price was reported to be $256 per square foot with an average capitalization rate of 6.7%. 

The Broward County Office Market

The 71 million square foot Broward County commercial office market reports a vacancy rate of 9.9% (and an availability rate of 14.8%) with more than 1.9 million square feet of space under construction. The average rental rate across all classes of office properties was reported to be $30.69 per square foot.  Net absorption during the quarter was negative 68,046 square feet. 

Within the past 12 months there have been 273 commercial office building sales in Broward County. The average sale price was reported to be $206 per square foot with an average capitalization rate of 7.0%. 

The Miami-Dade County Office Market

The 109 million square foot Miami-Dade County commercial office market reports a vacancy rate of 10.1% (and an availability rate of 14.7%) with more than 3.6 million square feet of space under construction. The average rental rate across all classes of office properties was reported to be $39.70 per square foot.  Net absorption during the quarter was negative 75,932 square feet. 

Within the past 12 months there have been 453 commercial office building sales in Miami-Dade County. The median sale price was reported to be $229 per square foot with an average capitalization rate of 6.0%.  

Click here to see more third quarter 2020 stats for all sectors of the commercial real estate market in South Florida.

 

About Quantum Realty Advisors, Inc.

Our firm differs from “traditional” real estate companies as we specialize in working not only with individuals and families but with professional advisors including attorneys, accountants, investment managers, trust officers and financial institutions to assist their clients with all their real estate needs.

The top three reasons to work with Chris and Amy are:

  • HONESTY, INTEGRITY AND TRUST.   In the last 10 years, more than 80% of our business comes from referrals or repeat clients showing that we develop trustworthy relationships with our clients.
  • EXPERIENCE.  Having successfully closed more than 2,000 real estate transactions, we know what it takes to get the job done properly, and in a timely manner.
  • WE GET MAXIMUM VALUE FOR OUR CLIENTS. While most real estate professionals say they get the best price for their clients, there is little that can prove that claim.  However, based on a study of home sales from 2012 to 2019 where an independent appraisal was conducted in advance, Chris & Amy achieved an average of 104.5% of value on more than 350 residential sales.
No matter where the property is located, the price point or the individual situation, Chris and Amy should be your first call for any real estate matter.

Contact us at 561.584.8555 or via email at info@quantumcos.com.

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