South Florida Region Market Reports | Third Quarter 2019
Broward County/Fort Lauderdale
Positive Market Fundamentals Driving Strong Leasing Activity and Rent Growth as New Supply Comes Online
Broward County's industrial market continued to experience significant growth during the third quarter of 2019 as national concerns began to increase regarding a global economic slowdown and deteriorating trade relations. The market recorded significant gains in net absorption, totaling just under 1 million sf for the year-to-date, and the overall vacancy rate remains below 4.0% despite 1.9 million sf of industrial space delivering to the market so far during 2019. Rental rates continue to climb in Broward County as the average asking rental rate for bulk distribution space increased to $8.70 per sf, a substantial 10.8% increase from the third quarter of 2018. Fundamentals are expected to remain in check as strong population growth and robust port activity continue to drive demand for logistics space.
Click Here to Download the Full Report: Broward County Industrial Market Report | Third Quarter 2019
Leasing Activity Remains Strong in the Suburban Submarkets as Rental Rates Experience Healthy Growth and New Supply Delivers
Broward County's office market continued to experience moderate, positive gains during the third quarter of 2019. Sound economic fundamentals continue to drive demand for high-quality office space throughout the county. Leasing activity remained solid throughout the third quarter with the most significant leases signed occurring in highly sought-after submarkets outside of the CBD. Top performing submarkets for the year-to-date include Cypress Creek, Sawgrass Park, and Southwest Broward. Class A assets have consistently outperformed class B assets as tenants continue to seek out premium, highly-amenitized spaces.
Click Here to Download the Full Report: Broward County Office Market Report | Third Quarter 2019
Miami's Industrial Market Experiences Robust Leasing Activity and Rising Vacancy Rates Amid New Construction Deliveries
Miami's industrial market continues to outperform other asset classes as the U.S. economy entered into its longest expansion period in history during the third quarter of 2019. Robust population growth, largely fueled by migration from high-tax states in the northeast, as well as the rapid growth of e-commerce continue to propel demand for logistics space near growing population centers. Although leasing activity has been strong throughout 2019, net absorption has slowed in the latter half of 2019 as speculative space continues to be absorbed into the market. Since the beginning of 2018, Miami-Dade County has had 6.8 million sf of speculative development deliver, of which 83% has already been leased. Average asking rental rates continue to surge higher as demand continuously outpaces supply.
Click Here to Download the Full Report: Miami Industrial Market Report | Third Quarter 2019
Miami Office Market Strong Amid Growing Construction Pipeline
As of July 2019, the U.S. economy reached its longest expansion period in history. As a result of slowing global economic growth and worsening trade tensions, the Federal Reserve announced two interest rate cuts during the quarter, lowering the benchmark rate range between 1.75 to 2%. Nevertheless, Miami's office market remained steady as it recorded positive net absorption, strong leasing activity, and an influx of capital investment. Although an abundance of supply will be hitting the market over the next few years, confidence still persists that Miami has established itself as a mature corporate center and will remain consistent for years to come.
Click Here to Download the Full Report: Miami Office Market Report | Third Quarter 2019
Palm Beach County/Boca Raton/West Palm Beach
Palm Beach County's Industrial Market Experiences Gains In Net Absorption As New Developments Take Shape
After a lackluster start to 2019, Palm Beach County's industrial market made considerable gains in the latter half of 2019. For two straight quarters, year-to-date net absorption for Palm Beach County has remained in negative territory, but strong employment growth and healthy leasing activity helped bolster demand as net absorption grew to positive 131,366 sf by the end of the third quarter. The overall vacancy rate declined over the quarter to 3.07%, a 41-basis point drop from the second quarter of 2019 and is now the lowest vacancy across the tri-county area.
Click Here to Download the Full Report: Palm Beach County Industrial Market Report | Third Quarter 2019
Strong Market Fundamentals Translate Into Continued Rent Growth as Leasing Activity Remains Steady
Economic fundamentals remain strong in Palm Beach County and a pro-business environment continues to draw tenants from the financial and legal services and healthcare job sectors. The overall vacancy rate ticked down to 11.57%, a slight 19-basis point (bps) decrease from the third quarter of 2018. Pent-up demand for large blocks of office space has fueled the development of several new office towers in the CBD, as well as a significant class A development in Palm Beach Gardens that is expected to deliver by the end of 2019. The large block of premium class A office space coming back online also translated into a significant increase in rental rates with the average asking rental rate reaching $36.84 per sf, a sizeable 8.5% increase over the trailing 12 months ending September 2019.
Click Here to Download the Full Report: Palm Beach County Office Market Report | Third Quarter 2019