As leading experts in Brevard County's commercial real estate for over 15 years, we at Reach Commercial stay on top of the latest happenings in our local market. I wanted to share some observations and insights into the current state of the office sector here in the Melbourne and broader Space Coast area.
The office rental market has shown resilience over recent years, despite economic ups and downs. Vacancy rates have actually held steady around 7% - far lower than statewide or nationwide averages. New construction has been modest as well - focused on quality over quantity. We're tracking major projects like The View at Palm Shores, but developers aren't overbuilding.
The space and defense contractors still drive so much business here. With NASA, Blue Origin, Northrop Grumman, and more based locally, the STEM job market just accelerates. As these sectors grow, especially privatized space exploration, they bring continuous demand for not just engineers but support staff too - purchase order specialists, HR pros, accountants.
That steady job growth keeps office rental rates climbing slowly. Asking rents recently hit $22 per square foot in some buildings - a new record high. We expect the trend to continue near-term, then likely moderate to 2% annual growth long-term. That type of projection helps clients like you make smart leasing decisions.
As we advise both property owners and tenants here locally, we believe the office market is entering a gradual shift toward equilibrium. Strong demand remains but rapid rent spikes may ease. With our finger on the pulse, we help clients navigate the nuances of an evolving landscape.
Reach Commercial is always happy to discuss the latest intel and forecasts in more depth. Let me know if you need any specialized insights on the Brevard County office sector to inform your real estate plans.