Fort Lauderdale office insight - Q2 2018
In addition, while rent growth remains positive, quarter-over-quarter, it grew 1.3 percent to $31.95 per square foot (f.s) - there is not much room to grow. Currently, all of the actively tracked submarkets already have an average asking rent at or above the peaks seen in the last cycle – with Class A assets performing best.
In the CBD, Class A rents are now 43.5 percent over peak rates seen in 2008 at $47.14 per square foot (f.s.). This comes as new product is expected to come online which should propel the average rate upward. In the CBD, 201 East Las Olas (not yet under construction but expected to break ground soon and deliver in late 2020) and the 550 Building (expected to deliver in 2019) are asking $40.00 per square foot (NNN) and $28.00 per square foot (NNN), respectively. So while the rates are high, and the average will likely rise, some buildings may start giving higher concession packages to retain tenants, shifting the net effective rents.