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Q1 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 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 has been stable for the past 7 quarters, currently sitting at 10%, and partly due to very little construction delivered recently. Direct asking rental rate has increased by $0.16/SF from the previous quarter to $29.27/SF.   Review the Palm Beach Market Office Report by clicking here.

The Palm Beach County industrial market has remained hot, with vacancy rates staying under 3% for the past three quarters!   500,000 SF of new construction deliveries this year will only slightly affect the vacancy rate.  Consistent with the last quarter, asking rental rates have increased by $0.15/SF this quarter.  Net absorption was negative for the first time in 5 years, at -21,250 SF!  Review the Palm Beach Market Industrial Report by clicking here. 

The Broward County office market has seen its first increase in vacancy rates in 19 quarters, now sitting at 8.6%.  This, along with a highly negative net absorption, may lead to a short-term dip in rental rates. Significant market activity included CCRE SEF Sawgrass, LLC’s sale of 13450 W Sunrise Blvd, Sunrise, a 239,373 SF Class “A” suburban office building for $57,400,000.00, or $239.79/SF.  Review the Broward Market Office Report by clicking here.

The Broward Industrial market showed a similar trend to the office market, with an increase in vacancy rates ow at 3.5%. Unlike office, the rental rates have already started to drop slightly, currently at $8.43/SF. Feeding South Florida signed a lease at Seneca Industrial Park (22501 SW 32nd Terrace Pembroke Park) for a 72,199 SF space. Overall, we’ve seen a strong indication of a slow down in the industrial market. Review the Broward Market Industrial Report by clicking here.