Labor markets are improving, keeping upward pressure on office space creation and development. An area hit particularly hard by the recession, office space has seen a dramatic uptick in demand in recent months. When the recession hit, many business had to either downsize, leaving an abundance of commercial office space vacant, or shut down entirely, forcing them to vacate the property they had previously occupied. Since then, the space has slowly but surely begun to be refilled. This year there’s been a 26 percent gain in office space under construction, and the highest number of occupancies filled in eight years in the third quarter.
Job growth has led to falling vacancies, leading to higher rents. This upward pressure on prices will likely continue as long as more labor is added to the market, but more likely, if wages begin to rise in the coming years. As America’s private sector continues to rebound, look for strengthening in demand for office space. “Developers are hustling now to get new product to the market, given the stronger absorption trends, particularly for newer, high-quality space,” says Kevin Thorpe, Cassidy Turley’s chief economist. This year 86 million square feet of high-end office space is under construction, the highest reading since 2008.
Areas like Downtown Miami have seen the result of this pickup in demand for office space, as prices have begun to rise from historic recession lows. If you’re interested in capitalizing on competitive prices in the Miami office and commercial space, please contact a RE/MAX agent today!