Q1 2020 Market Reports – Broward and Palm Beach Counties
Berger Commercial Realty has analyzed the office and industrial markets in both Broward and Palm Beach Counties, to help you keep track of key data. This information has proved valuable for our clients: tenants, investors, and landlords can all follow their respective markets to understand the leverage they have in negotiations, and whether their property is outperforming (or under-performing) the rest of the market.
In March of this year, we were just beginning to see the effects of the COVID-19 pandemic. We anticipate significant changes in the office markets in the coming months, but as of March 31, 2020, the close date for our Q1 report, the market indicators were not showing significant impacts. Read on to see how the Broward and Palm Beach County markets performed so far in 2020.
Asking rents in the Broward County office market continued to climb despite the increase in vacancy (+50 basis points from Q4 2019) as well as an increase in negative absorption (negative 237,219 sf for the quarter). Among the largest office lease signings in the first quarter was New York Life Insurance Company’s 25,662 sf renewal at 1801 NW 66th Ave, Plantation. Among the largest sales this quarter was Aztec Group Inc’s sale of the 132,092 sf office building in Miramar to Bankers Healthcare Group for $29 million ($220/sf). Review the full Broward Market Office Report by clicking here.
The Broward County industrial market
Vacancy increased 50 basis points to reach 5.75%, but rents continued to climb, now as $9.25/sf Among the largest industrial lease signings in the first quarter was Bang Energy’s 249,005 sf lease at Florida Distribution Center in Fort Lauderdale. Among the largest sales this quarter was Core5 Industrial Partners’ sale of a 249,005 sf industrial building in Fort Lauderdale to Vital Pharmaceuticals for $40.377 million, or $162/sf. Review the full Broward Market Industrial Report by clicking here.
The Palm Beach County office market
Experienced increased absorption, which helped to keep vacancy rates low – down 10 basis points from the previous quarter to 8.9%. Among the largest office lease signings in the first quarter was the IRS’s 32,503 sf lease at 1700 Palm Beach Lakes Blvd. Among the largest sales was The Greenfield Group’s sale of the 75,690 sf medical office building at 1601 Clint Moore Rd., Boca Raton, to AW Real Estate Management LLC for $34 million, or $449/sf Review the full Palm Beach Market Office Report by clicking here.
The Palm Beach County industrial market
Had a 50 basis point increase in vacancy, now up to 3.4%. Asking rates were down $0.16 per sf to $9.13/sf after two straight quarters of negative absorption. Among the largest industrial lease signings in the first quarter was Niagara Bottling’s 114,536 sf lease at Palm Beach Park of Commerce in Jupiter; and Home Depot’s 77,760 sf lease at Prologis Airport Center in West Palm Beach. Among the largest sales this quarter was Leder Realty and Management’s sale of a 175,625 sf flex building in Boca Raton to Brookfield Asset Management for $31.4 million, or $179/sf. Review the full Palm Beach Market Industrial Report by clicking here.