Cost of renting commercial space in S. Florida creeps up toward New York rates

When Jim Cahlin looks at commercial real estate in South Florida, he's starting to see New York.

"We're getting closer and closer to rental rates in major metropolitan markets," said Cahlin, a broker for Cushman & Wakefield.

At year-end 2006, the average rental rate for luxury downtown office space in Palm Beach County was $40.69 a square foot, up from $36.42 at year-end 2005, according to a Cushman report. Broward's rental rate for comparable digs was $31.08 a square foot, up from $29.29.

Rents in the Big Apple and other large cities are north of $50, Cahlin said.

Why are South Florida landlords charging so much? Because they can.