Links to our CIASF Market Reports

On June 13th, real estate brokers, Tony Puente, Robert Meneses and I presented the first Annual South Florida Office Market Report to over 120 members of the “CIASF” Commercial Industrial Association of South Florida. This report provides a snapshot of the Office Market Conditions for the year. For research purposes Miami-Dade County is divided into 7 regions and information for each region was provided. This information includes a description of the region, office rental rates, example of a typical lease, a typical office building sale and a typical condominium office sale. Included with each example was a complete description of the building and a photo.

Here from the report is the summary of Office Market Conditions for 2008:

· The office leasing and investment sales market is healthy, but there is a yellow (cautionary) flag waving in the wind. Demand/absorption of new space is expected to be flat or negative for 2008 with some tenant growth in legal, accounting and insurance companies, but a significant decline in demand from financial, mortgage and real estate companies.

· With no significant deliveries of office space in 2006 and 2007 up to 4 million SF of office space will be delivered over the next 12-30 month with three large buildings in the Downtown/Brickell corridor and eight in the Doral and surrounding areas. Adding to the rental supply are some condo office buildings reverting to “for lease” buildings creating a hybrid-building ownership situation.

· The leasing market will remain active with up to 20% of leases expiring in the next two years. Also, as rental rates rise to $50/RSF large tenants will seek less expense alternative locations. In addition, the “for sub-lease” market will continue growing and offer alternatives to tenants.

· Demand for office investments by institutions remains strong and will continue. However, price expectation by buyers has changed significantly with higher capitalization rates, difficult debt and finance markets resulting in lower prices.

After the information on transactions in each region was presented, I provided my analysis of the future “Supply and Demand for Office Space” for Miami-Dade. For the current demand analysis I multiplied the number of employees in the Department of Labor categories, information, finance and insurance, real estate, professional services and management by a factor of 325 SF per employee. This represents an indicator of the demand. For future demand I projected a 2,000 per year increase in employee in these categories. For the existing supply analysis I totaled the adjusted area of all office buildings in Miami-Dade over 5,000 SF. This information was from the Public Records available at the office of the Property Appraiser. For future supply I projected an annual increase in office space of 500,000 SF except for 2009 when 3,500,000 SF is expected to be put on the market. The difference between supply and demand is the vacancy rate. This rate is projected to increase above 12% in 2009 and if the assumptions are correct decline in future years to a more typical rate of 8% to 9%.

If you would like to view the entire presentation in a downloadable and printable format you can go to and click on the CIASF Office Market Report in blue at the bottom of the page or you can go directly to the report if you click on this link:

2008 South Florida Office Market Report Link

For information to join the Commercial Industrial Association of South Florida contact Nick Kallergis Executive Director at 305-443-6233.


by Tom Dixon

With the beginning of the New Year it is time to look back at what has happened in the real estate market and to project what to expect for the coming year. The “Industrial Association of Dade County” (IADC) has become the “Commercial Industrial Association of South Florida” (CIASF) with an emphasis on all aspects of commercial real estate including office buildings, shopping centers and industrial/warehouses. This year’s Industrial Market Report contains the same emphasis as prior years. For reporting purposes, Miami-Dade The following is a summary of the information in that report. County is divided into seven areas based on typical properties in each area.

Supply of Industrial Space: For the year 2006 industrial space increased by 2,174,000 SF as compared to the prior year of 1,783,000 SF. This represents a moderate increase in the annual supply of new industrial space.The area of Northwest/Medley had the greatest growth 599,000 SF.

Industrial Employment: 2007 industrial employment in manufacturing, trucking/warehousing and wholesale trading increased to 185,100 from 182,500 in 2006. This increase was primarily in wholesale trading.

Total Freight: Cargo movement through the Port of Miami decreased to 7,835,131 tons down from 8,654,000 while cargo at the Airport increased to 2,038,000 up from 1,662,000 tons.

Demand/Supply for Industrial Space: Based on industrial properties available for lease vacancies rates ranged from a low of 2% to a high of 10% in the seven regions described in our report. This variation is the result of additional supply and changes in demand. The highest vacancy rate was 10% in Hialeah.

Rental Rates/Sales Prices: With over 419 properties having a total of 11,316,000 SF for lease, rental rates ranged from $8.50/SF to $11.25/SF. This variation results from the variety of product type from large older, street level warehouses to 100% AC flex space with office and warehouse areas.

Sales for the year of 2007 through November for buildings over 10,000 SF totaled 144 with a total of 5,711,900 SF. Sales prices ranged from $72/SF to $106/SF; again, the wide variation results from the different property types.

Summary: As in years past our industrial market report provides a snapshot of conditions and influences for 2008:  Tenants are “right-sizing”, this is a trend to examine realistic needs and consolidate their operations into smaller spaces. Although the number of businesses in the area remains constant, they are consuming less square footage.  One effect of Miami’s increase in traffic congestion is the need for distribution companies to have distribution hubs in Miami. State government has not been able to reduce real estate taxes or insurance. These continue to discourage companies to relocate to South Florida. As a result of the downturn in local and national economies, rental rates for properties have stabilized and are trending downward. With stable rental rates, property values in the coming year will be based more on rental income rather than resale value at a future date.

If you’d like more information about the “Commercial Industrial Association of South Florida” send an e-mail to [email protected] or you can view the entire Market Report on our website