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: 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 rest of the market.
The Palm Beach County office market has reversed direction, with vacancy decreasing by 10 basis points and net absorption back in positive territory for the first time since Q3 2017. Direct asking rental rates have increased by $0.26/SF to $29.52/SF. Among the largest office sales this quarter was RAIT Financial Trust’s sale of its 171,490 square foot office building at 1501 Yamato Road, Boca Raton, to a joint venture between Pebb Enterprises and Tortoise Properties for $42.05 million, or approximately $245/ SF. The property is 100% occupied by ADT, with a portion subleased to another tenant. Review the Palm Beach Market Office Report by clicking here.
The Palm Beach County industrial market is getting even tighter, with vacancy rates dropping 30 basis point to 2.6%! This is being fueled by net absorption of more than 120,000 s.f., and no new construction deliveries this quarter, as well as increasing demand for distribution space related to online commerce. Among the largest industrial sales this quarter was Exeter Property Group’s multi-state portfolio sale, which included 6400-6500 Park of Commerce Blvd., Boca Raton. The two-building property totals 148,426 SF and sold for $19.1 million ($128.68/SF). Review the Palm Beach Market Industrial Report by clicking here.
The Broward County office vacancy rate remained unchanged this quarter, sitting at 8.5%. Despite the negative net absorption of nearly half a million square feet in the previous quarter, absorption was positive this quarter and rental rates are steadily increasing, jumping $.95/SF from Q1. Significant market activity included Aetna’s 78,605 s.f. lease at the newly renovated Plantation Walk Office, 300 NW 82nd Ave, Plantation; and Cigna’s 49,868 s.f. lease at 1571 Sawgrass Corporate Parkway in Sunrise. Review the Broward Market Office Report by clicking here.
The Broward Industrial market showed a much different trend than its Palm Beach counterpart, with an increase in vacancy rates to 3.8% and a continued decrease in rental rates – now down to $8.39/SF NNN. This may indicate an equilibrium or peak in the Broward industrial market, at least for the short term. Among the largest sales this quarter were Supervalu Inc.’s sale of 1141 SW 12th Ave, Pompano. The 21,948 SF distribution center sold for $66,410,000 or approximately $91.99 sf (a sale leaseback, and part of a larger $483 million portfolio sale of eight properties in multiple states). Review the Broward Market Industrial Report by clicking here.