Florida office rents have increased to near-record highs based on solid demand for space that provided confidence for developers to build speculative construction. Average rent growth YOY in Florida was 4.5%, and rents are now on average 18% higher than previous cycle highs.

Most Florida office markets, however, are still a relative value compared to historic highs. Only Tampa and Palm Beach have asking rents higher both numerically and on an inflation adjusted basis. According to the BLS’ Consumer Price Index, prices in 2019 are 19.17% higher than average prices since 2009, which equates to an average inflation rate of 1.77% per year. While office rents in Florida are up almost 18% on a numerical basis, this cycle they are still down -4.5% on an
inflation-adjusted basis.