Airport Submarket Activity Continues
MIAMI-Tenant demand continues in the city’s Airport West-Dade submarket with the signing of two office leases totaling more than 19,000 sf. With the new leases vacancy in the submarket, which is the city’s largest, has reached its lowest levels in five years.
Home Service USA, Inc. signed a 13,500 sf lease at 5301 Waterford. The building was represented by Stephen Smith, of Hogan Group. APC Latin America leased 5,700 sf at 703 Waterford. The building was represented by Richard Neve, of Hogan Group.
CB Richard Ellis senior associate Susan Thomas represented the tenant in each transaction. “Vacancies in the Airport West-Dade submarket have reached their lowest level in five years making it increasingly more difficult to find space in this submarket,” Thomas says. “As more tenants compete for the available space, rents will continue to rise and landlords will continue to gain more leverage in lease negotiations. By understanding these market dynamics, we were able to successfully represent both the tenants with favorable terms and conditions.”
According to a CB Richard Ellis first quarter report, there is 9.5 million sf of office space in the Airport West-Dade submarket. The vacancy rate has been on the decline for the past three years. The vacancy rate was 19.9% in the first quarter 2003 and 13.5% during the first quarter of this year. Average asking rates have been rising, from $20.20 per sf during the first quarter 2003 to $22.63 for the first quarter of this year. There has been a total of 111,757 sf of net absorption during the first quarter, according to the report.