Berger Commercial Realty has once again analyzed the office and industrial markets in both Broward and Palm Beach Counties to help you keep track of significant stats and activity. This information has proved valuable for our clients: investors, landlords, and tenants can all follow their respective markets to understand the leverage they have in negotiations, and whether their property is outperforming (or under-performing) the market as a whole.
The Palm Beach County office market leasing seems to be stabilizing, with vacancy rates holding at 10.4% for the second consecutive quarter, and average asking rents rising to $29.10/s.f. gross. The investment sale market remains hot, though, with the 50,017 s.f. office building at 125 Worth Avenue on the Island of Palm Beach selling for $30.7 million, or $614 per s.f.! Review the Palm Beach Market Office Report by clicking here.
The Palm Beach County industrial market is gaining momentum, with vacancy rates dropping to an astounding 2.5%! Asking rental rates increasing by $0.15/s.f. in the final quarter. One of the largest sales was 1101 Clint Moore Road, an 84,834 industrial property, which sold for $16 million, or $190/s.f. Review the Palm Beach Market Industrial Report by clicking here.
The Broward County office market remained strong, with vacancy rates holding at 8% since the third quarter. Significant market activity included Sheridan Helathcare’s 88,716 s.f. lease in Plantation, the S. Florida Bible College’s 50,000 s.f. lease in Deerfield Beach, and TA Realty’s sale of 200 East Broward Blvd., a 225,761 s.f. Class A downtown office building, for $81.5 million, or $361/s.f. Review the Broward Market Office Report by clicking here.
The Broward Industrial market tightened, with vacancy dropping 20 basis points to 3%. Woodfield Distribution’s (represented by Michael Feuerman of Berger Commercial Realty) signed for over 80,000 s.f. in Prologis Centerport in Pompano Beach. In addition, Principal Global Investors sold the 151,389 square foot Port 95 Industrial Center at 2800 SW 42nd Street, Fort Lauderdale, to TA Realty for $21 million, or approximately $139 per square foot. The reported cap rate was 4.7%! The sale market is still favorable for sellers. Review the Broward Market Industrial Report by clicking here.
There are no signs of a downturn for these office and industrial markets, thanks to South Florida’s strong and growing economy.