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 is gaining speed, with over 70,000 SF of new office construction delivered in Q4. We saw the highest net absorption of 2018, a slight increase in asking rates, and a slight decrease in the vacancy rate. With vacancy at 9.4%, the overall market is still healthy. Among the largest office leases signed this quarter was TherapeuticsMD’s lease of 55,164 SF at 951 Yamato Rd, Boca Raton. Review the Palm Beach Market Office Report by clicking here.
The Palm Beach County industrial market seems to be in a good state of equilibrium. Supply has been keeping up with demand, with vacancy rates at 2.60%. However, for the first time in 2018, asking rates have dropped, now at $8.84/SF NNN, just one penny higher than the asking rate in Q1. Among the largest industrial sales this quarter was McCraney Property Company’s portfolio sale of three properties totaling 172,811 SF for $25.8 million ($149.00/SF). Review the Palm Beach Market Industrial Report by clicking here.
The Broward County office vacancy rate remained at 8.2% and absorption has decreased substantially. Nonetheless, quoted asking rental rates increased by $1.87/SF over the previous quarter to $30.61/SF! Significant market activity included Ivy Realty Services LLC’s sale of the 351,705 SF office building located at 1 E Broward Blvd, Fort Lauderdale to joint venture NAI/Merin Hunter Codman, Inc / PCCP LLC for $108.5 million ($309/SF). Review the Broward Market Office Report by clicking here.
The Broward Industrial market showed signs of stabilizing this quarter, with vacancy rates rising 20 basis points to 3.2%, and asking rents rising after two straight quarters of dropping rates. Asking rates ended the year up $.04 at$8.34/SF NNN, still $.10/SF less than Q1. Net absorption remains strong, even with nearly 500,000 s.f. of new product delivered this quarter. Among the largest industrial sales was Fortress Investment Group LLC’s sale of 778,816 SF at 1141 SW 12th Ave, Pompano Beach to CenterPoint Properties for $95 million ($122/SF). Review the Broward Market Industrial Report by clicking here.