Miami's office market on the mend
June 21, 2012
By: Scott Blake
A newly released report and a panel of local commercial real estate professionals agree: Miami-Dade County's giant office market is on the mend. ...
... Although vacancy rates are declining in much of the area, it could be two more years before substantial recovery and the market tilts back in favor of landlords instead of tenants, according to the Commercial Industrial Association of South Florida's annual Office Market Report.
The group released the report Friday during a luncheon at the recently opened Town Center One office tower in the Dadeland section of Kendall.
The event featured a panel on the issue, with the big question: When will the lingering effects of the real estate crash of past years dissipate?
... The Office Market Report, which covers the first quarter of the year, also tabbed the turnaround at about two years.
"The office market remains a tenant's market, however concessions are less generous than they were a year ago for Class A space," the report states. "Class B and C properties are still mired deep in a tenant's market." Class A is considered the most luxurious space. ...
... It's not that there aren't deals out there for tenants, said panelist Gregory Katz, executive vice president at Studley.
"We're still seeing good deals in the trophy properties," Mr. Katz said.
What tenants are looking for, he added, is either "efficiency of space" — meaning they don't want to lease more space than they absolutely need — or they're seeking "flexibility of space for the future," meaning they want to be able to possibly expand someday. ...
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