Prior to COVID-19 disruption, asking rents continued to push upwards, likely to reverse in coming quarters

Ahead of any COVID-19 related market disruption, asking rents in South Florida saw a significant uptick. In the first quarter of 2020, the overall average office rent stood at $37.04 per square foot (psf), reflecting an annual increase of 9.1% and 1.7% over the quarter. Rents ranged from a low of $26.18 psf in Cypress Creek/Fort Lauderdale and $26.72 psf in North Broward, to $48.26 psf in Brickell and $46.16 psf in Coral Gables/Grove. Class A rents increased by 10.8% year over year and by 2.2% over the quarter, to $42.62 psf. Central Business District rents increased year over year through the first quarter by 6.0%, to $44.37, while suburban rents rose by 9.3%, to $33.67, over the same period. As uncertainty stemming from the ongoing pandemic situation looms, activity is sure to drop - and as options return to market, rent growth is likely to stall or reverse.

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