The latest trend in our commercial real estate market is a move toward smaller spaces as some businesses increase their cost cutting efforts. Some business owners are downsizing into smaller warehouses and offices until their business picks up. Other factors changing our market are rising rent prices in other office markets and high gas prices. These new conditions are providing companies incentive to relocate to where their employees live.
According to CBRE's latest quarterly market report "More tenants are considering moving from Coral Gables and the Central Business District (CBD) as rental rates have increased over the past several years. More companies are looking at Airport West and the eastern portion of the Kendall Submarket as alternatives."
In addition to influencing factors from other markets, we are now seeing local landlords beginning to relent on their sale and lease prices in an effort to stand out from the growing inventory. As a result of the lower lease prices (for warehouses in particular) the market is starting to absorb the 600-1,500 sq. ft. units, although the inventory remains relatively high.
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