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What does South Florida’s sublease market say about tenants?/833/miami-4-9-18-what-sublease-market-says-about-tenants<img alt="" src="/united-states/en-us/PublishingImages/Snapshots/building-exterior-ocean-palm-trees.jpg?RenditionID=6" style="BORDER:0px solid;" />/united-states/en-us/research/snapshots/833/miami-4-9-18-what-sublease-market-says-about-tenantsWhat does South Florida’s sublease market say about tenants?The chart above combines sublease vacancy rate and sublease net absorption to tell the story.
South Florida office cap rates among lowest in nation/818/miami-4-2-18-office-cap-rates-lowest<img alt="" src="/united-states/en-us/PublishingImages/Snapshots/abstract-steel-industrial-office.jpg?RenditionID=6" style="BORDER:0px solid;" />/united-states/en-us/research/snapshots/818/miami-4-2-18-office-cap-rates-lowestSouth Florida office cap rates among lowest in nationMiami has some of the lowest Class A office cap rates in the nation, with rates for Class A buildings ranging between 4.50 percent and 5.25 percent on average – on par with markets like New York, Boston, and Atlanta.
Center of gravity for office deliveries shifting to suburban and emerging markets./722/miami-2-27-18<img alt="" src="/united-states/en-us/PublishingImages/Snapshots/building-tree.jpg?RenditionID=6" style="BORDER:0px solid;" />/united-states/en-us/research/snapshots/722/miami-2-27-18Center of gravity for office deliveries shifting to suburban and emerging markets.In terms of future office deliveries, Miami’s submarkets remain clouded in uncertainty.
Relative supply and demand most aligned in the 10,000 to 30,000 square foot range/693/miami-2-19-18-relative-supply-and-demand<img alt="" src="/united-states/en-us/PublishingImages/Snapshots/abstract-modern-urban-architecture-abstract-background-jll.jpg?RenditionID=6" style="BORDER:0px solid;" />/united-states/en-us/research/snapshots/693/miami-2-19-18-relative-supply-and-demandRelative supply and demand most aligned in the 10,000 to 30,000 square foot range​Relative supply and demand (the distribution of supply and demand across submarkets) align most closely in the middle segment of the office market (10,000 to 30,000 square feet), with the CBD supplying the lion’s share of space.
As vacancy rises in Downtown and rents skyrocket in Brickell, tenants may gravitate North of the Miami River/654/miami-2-5-18-tenants-gravitate-north<img alt="" src="/united-states/en-us/PublishingImages/Snapshots/building-exterior-high-rise.png?RenditionID=6" style="BORDER:0px solid;" />/united-states/en-us/research/snapshots/654/miami-2-5-18-tenants-gravitate-northAs vacancy rises in Downtown and rents skyrocket in Brickell, tenants may gravitate North of the Miami River​Ever since the redevelopment of Brickell in the 1970s from a low-density enclave of Miami’s elite to a high-density urban neighborhood, Miami’s CBD has been split north-south across the Miami River.
Largest leases are getting larger in land constrained Miami, and having to rely on BTS options as of late/614/miami-1-22-18-large-leases-are-getting-larger<img alt="" src="/united-states/en-us/PublishingImages/Snapshots/building-office-block-windows-bangkok.jpg?RenditionID=6" style="BORDER:0px solid;" />/united-states/en-us/research/snapshots/614/miami-1-22-18-large-leases-are-getting-largerLargest leases are getting larger in land constrained Miami, and having to rely on BTS options as of late​Large leases (100,000 – plus square feet) are a rarity for the market, yet large deals are only getting larger.