Florida Office Market Report (Q4 2020)24 Feb 2021
The Covid-19 pandemic has marked a tipping point in the disruption of employment patterns and work styles, forcing companies to adopt solutions that would have normally taken years to reach. Market dynamics are beginning to shift across the state, and not necessarily for the better in the near term. Florida’s office markets weathered the storm that was 2020 for several successive quarters, but the dynamics began to change toward the end of the year. Total vacancy accelerated by 321 basis points (bps) to 13.95% during the trailing 12-month period ending with December, and the expected glut of sublease space has begun to arrive, with total vacant sublease space more than doubling over that period to a current 1.54%, with the highest concentrations in Broward County, Orlando and Jacksonville. \
With that said, it’s not all gloom and doom. With deal activity picking up toward the end of the year and more tenants increasingly willing to sign traditional term deals beyond the short-term renewals that dominated the conversation for two straight quarters, there is optimism that Florida’s office markets will begin to approach a return to normal by the end of 2021.