SFL Pulse360 | Page 27

art 4. REAL ESTATE OVERVIEW // OFFICE // SUBURBAN OFFICE While vacancy hasn’t declined as sharply as South Florida’s CBDs, the vacancy rate is at prerecession levels. 1,000,000 // OFFICE SUBURBAN HISTORICAL VACANCY Miami West Palm Beach FT. Lauderdale 30% Miami FT. Lauderdale West Palm Beach 800,000 25% 600,000 20% In 2014, the Suburban office markets collectively had their best year in terms of absorption gains in nearly a decade 400,000 15% 200,000 10% 0 5% -200,000 0% -400,000 -600,000 -800,000 Historical Rental rate chart Miami 30% FT. Lauderdale 25% Miami FT. Lauderdale West Palm Beach Miami FT. Lauderdale West Palm Beach West Palm Beach 20% $35 15% $30 10% $25 // OFFICE SUBURBAN HISTORICAL ABSORPTION 1,000,000 600,000 600,000 400,000 200,000 5% $20 0% $15 -200,000 $10 -400,000 0 // OFFICE SUBURBAN HISTORICAL RENTAL RATES $0 Miami FT. Lauderdale 800,000 800,000 400,000 $5 Rental rate chart Historical 1,000,000 Miami -600,000 Miami FT. Lauderdale 200,000 0 -200,000 -400,000 -600,000 -800,000 -800,000 West Palm Beach $35 Miami $30 FT. Lauderdale West Palm Beach $25 $20 Suburban asking rents have been steadily increasing since their low points in 2010/2011 $15 $10 $5 $0 // 27 FT. Lauderdale West Palm Beach West Palm Beach