South Florida Region Market Reports | First Quarter 2019
Surge in Leasing Activity as Coworking Tenants Continue to Saturate the Miami Office Market and Development Spikes in the CBD
After experiencing solid growth in 2018, Miami-Dade County's office market made additional gains during the first quarter of 2019 as the market recorded healthy leasing activity and continued job and population growth. Vacancy rates inched higher this quarter due to the delivery of new speculative projects including CUBE Wynwd in the Biscayne Corridor submarket and Crescent Pointe in the Miami Lakes submarket. After reaching a peak of rental rate growth in 2018, average asking rental rates appear to have stabilized and remained flat over the quarter. The non-CBD continued to outperform the CBD during the quarter as emerging niche markets outside the urban core such as Wynwood, Airport-Doral, and Coral Gables continue to attract tenants seeking shorter commutes.
Click Here to Download the Full Report: Miami Office Market Report | First Quarter 2019
Robust Leasing Activity and Strong Positive Net Absorption Set the Tone for 2019 Amid New Industrial Deliveries
Following one of the most successful years for Miami-Dade County's industrial market, 2019 is already off to an impressive start as the market continues to be propelled by persistent population and job growth, positive investor sentiment, and strong leasing activity. Net absorption experienced a significant gain during the first quarter, recording 1.15 million sf of positive net absorption, a notable 45% increase from the net absorption recorded for the first quarter of 2018. The delivery of several mostly pre-leased speculative developments this quarter contributed to the spike in net absorption. Despite an influx of new industrial product, vacancy rates continue to remain low and relatively flat indicating the strength of demand in Miami's industrial market.
Click Here to Download the Full Report: Miami Industrial Market Report | First Quarter 2019
Broward County/Fort Lauderdale
New Development is Beginning to Stabilize Demand as Investment Activity Heats Up in Broward County
Broward County's office market grew at a moderate pace during the first quarter of 2019 as economic fundamentals remained positive and investment activity accelerated. Healthy leasing activity took place during the first quarter and moderate positive net absorption of 97,254 sf was recorded. A slow development pipeline in recent years has helped to keep market fundamentals in check, however a tightening supply of high-quality office product has sparked new development in Downtown Fort Lauderdale, Hallandale, and Southwest Broward. While rental rates have seen significant growth over the course of the cycle due to the limited supply of space, average asking rates are beginning to level off and remained flat over the quarter at $31.66 per sf (+$0.04) as supply is now catching up with demand.
Click Here to Download the Full Report: Broward County Office Market Report | First Quarter 2019
Low Vacancy Rates Hold Steady in Broward County as New Development Continues to Deliver Throughout the Market
The positive momentum created in 2018 carried over into the beginning of 2019 as Broward County's industrial market recorded moderate gains during the first quarter. Population growth, job creation, and robust demand for logistics space continues to drive the market as consumer expectations continuously evolve. Vacancy rates remain near record lows and well below the national average despite the county experiencing record-breaking new development deliveries throughout 2018.
Click Here to Download the Full Report: Broward County Industrial Market Report | First Quarter 2019
Palm Beach County/Boca Raton/West Palm Beach
Palm Beach County's Office Market Surges with New Development to Meet Tenant Demand for High-Quality Class A Space
Palm Beach County's office market maintained healthy growth during the first quarter of 2019 as population growth and the county's dedication to attracting new businesses continue to drive the market. Limited supply of class A office space has sparked a wave of development in Downtown West Palm Beach as well as in Palm Beach Gardens and Delray Beach. The overall average asking rate inched upward over the quarter to $35.13 per sf (+$0.70) as tight office supply remains favorable for landlords. New development deliveries on the horizon in 2019 may cause upward pressure on vacancy rates, but space is likely to be leased quickly due to demand for larger blocks of space.
Click Here to Download the Full Report: Palm Beach County Office Market Report | First Quarter 2019
Net Absorption Takes a Dip in the First Quarter as Investors Continue to Move Forward with New Development Projects
After reaching record-low vacancy rates in 2018, Palm Beach County's industrial market cooled slightly during the first quarter of 2019 as the very tight market experienced a handful of large tenant move-outs upon lease expiration. Despite net absorption dipping into negative territory (-78,852 sf ) for the first time in eight years, healthy leasing activity continued throughout the market and investment activity picked up significantly. Demand for class A industrial space remains strong as the flight to high-quality industrial product resulted in a few tenants relocating to newly delivered industrial buildings in neighboring markets.
Click Here to Download the Full Report: Palm Beach County Industrial Market Report | First Quarter 2019