As the residential real estate market in South Florida continues an unbroken streak of good months, most of our readers would probably expect to see more office buildings and retail locations filling up with tenants. After all, it goes without saying that where there’s paying customers to be found a company will usually try to get a foothold in that area. So, is commercial real estate in South Florida beginning to reflect some of the positive news coming out of the residential side of things? A recent report suggests that just might be the case.
According to the report, three particular areas in South Florida are seeing top-dollar rates for office rent. And by top-dollar, the report means that these three particular streets are among the top 20 most expensive areas for office rent in the country – not just Florida.
Royal Palm Way in Palm Beach is the highest of the three, ranked ninth most expensive in the country. That street sees office rents at a very pricey $58.52 per square foot. By comparison, the second of the three, Brickell Avenue, in Miami, is seeing rates of $39.09 per square foot. That is good for fourteenth highest in the country. Lastly is East Las Olas Boulevard in Fort Lauderdale, which, with rates of $36.84 per square foot, places that area at nineteenth most expensive in America.
Rising rates usually means rising demand. As more people flock to South Florida to maintain residence, the businesses were always sure to follow. This report is just the latest indication that commercial property may be starting to keep pace with the red-hot residential property market, which only means more good news for sellers of all types of property in the local area.
Source: Sun Sentinel, “Palm Beach, Fort Lauderdale streets among priciest office rents,” Paul Owers, Oct. 1, 2013