This newsletter analyzes the office market in Florida. With the exception of land, the office market suffered some of the largest drops in value during the real estate depression and has faced some of the stiffest headwinds during the recovery. Office demand was particularly hard hit by Florida employment losses.
Further, while much of the focus has been on the internet's impact on bricks and sticks retail, no property category has been more directly affected by technology than the office sector. Computer rooms, file rooms, word processing stations and law libraries have been either eliminated or significantly reduced. These trends along with shrinking workspaces, tele-commuting, office hoteling and collaborative workspaces are further decreasing square feet per employee. These dramatic changes will benefit office buildings with large open workspaces and generous parking ratios. Older buildings with fixed column partitions and lower parking ratios will suffer.