Avison Young's Year-End 2019 CRE Market Reports | South Florida
SOUTH FLORIDA | Year-End 2019
Net Absorption Experiences a Significant Jump Amid Record High Construction Completions
Miami-Dade County's industrial market reported yet another year of robust expansion in 2019. Economic fundamentals remained strong and the rise of e-commerce alongside solid international trade continue to fuel Miami's industrial market despite a slowing of the global economy. Leasing activity remained strong during the fourth quarter of 2019 as demand continues to outpace supply. Following a prolific year of construction completions, 2019 completions still managed to surpass the all-time record high set in 2018. During 2019, over 5.6 million sf of industrial product was added to the market, expanding the local inventory by nearly 3%. Due to much of the new construction being pre-leased, net absorption made a significant jump during the fourth quarter, ending the year with 3.4 million sf being absorbed.
Click Here to Download the Full Report: Miami Industrial Market Report | Year-End 2019
Office Fundamentals Solid with Global Headwinds on the Horizon
Miami's office market held steady at the end of 2019 despite the slower momentum of U.S. economic growth and global uncertainty. The overall employment outlook remains positive as the U.S. added 202,000 private sector jobs during the month of December. In Miami, the unemployment rate reached a new all-time low of 2.7% in November 2019, a solid 60-basis point (bps) drop from the trailing 12-month period ending November 2018. Leasing activity remained stable during the fourth quarter of 2019 with some of the most significant deals of the quarter being signed in Coral Gables, Brickell, and Coconut Grove. Net absorption ended the year in positive territory at 760,615 sf, and the overall vacancy rate declined to 11.63% (-0.24%) over the previous year.
Click Here to Download the Full Report: Miami Office Market Report | Year-End 2019
Broward County/Fort Lauderdale
Market Fundamentals Remain Solid as a Massive Amount of New Industrial Product Comes Online
Broward County's industrial market experienced moderate growth during 2019 as strong employment, continued population growth, and robust port activity supported the market amid a decelerating global economy. Leasing activity remained solid during the fourth quarter with notable leases being signed in the Southeast Broward and Pompano Beach submarkets. Coming off of an already impressive year in 2018, construction completions during 2019 set a new all-time record delivering a total of nearly 2.7 million square feet of new industrial space, the largest amount completed in a single year since 2002. Moving into 2020, Broward County's industrial market is positioned for continued growth as demand for well-located premium quality logistics space persists.
Click Here to Download the Full Report: Broward County Industrial Market Report | Year-End 2019
Leasing Activity Remains Strong in the Suburbs as New Office Deliveries Reach a 10-Year High
Broward County's office market ended the year with another quarter of solid growth amid a decelerating global economy. Expanding business development and strong growth in office-using employment continue to bolster demand for office space. For several consecutive quarters, Broward County has outpaced both Miami-Dade and Palm Beach Counties in rates of job creation with the unemployment rate reaching a new low of 2.6% in November 2019. Leasing activity remained solid during the fourth quarter of 2019, with six new leases over 20,000 sf taking place, most of which were located in suburban submarkets. Net absorption remained healthy at 408,745 sf at the end of 2019, up from the 291,000 sf recorded at the end of 2018. During 2019, Broward delivered 313,816 sf of new office product, the largest amount in a decade.
Click Here to Download the Full Report: Broward County Office Market Report | Year-End 2019
Palm Beach County/Boca Raton/West Palm Beach
Slower Growth Amid a Decelerating Manufacturing Sector, New Logistics Space on the Horizon
Palm Beach County's industrial market experienced slower growth in 2019 when compared to 2018 as the global economy continued to decelerate. After experiencing consistent 5% annual job growth in the manufacturing sector throughout 2019, growth declined to 1.4% in November 2019, however the decline is less severe than the 1.7% and 5.9% decline in Broward and Miami-Dade County respectively. Net absorption remained relatively flat, but ended the year in positive territory of 211,039 sf. Vacancy rates have been at historic lows for the last few years due to a limited construction pipeline, however the vacancy rate began trending upward in 2019, rising to 3.52% in the fourth quarter with the delivery of 220,000 sf of speculative space at the Palm Beach Park of Commerce.
Click Here to Download the Full Report: Palm Beach County Industrial Market Report | Year-End 2019
Economic Growth Mirrors National Trend as It Decelerates Amid Global Headwinds and Significant New Development on the Horizon
Palm Beach County's office market ended 2019 lagging slightly behind the growth set in 2018. A decelerating global economy alongside ongoing trade wars, tension in the Middle East, and uncertainty surrounding the upcoming political season have all played a role in creating weaker demand for office space. That said, there has been an office development boom, particularly in Downtown West Palm Beach, after years of keeping supply in check with a subdued construction pipeline. Two major class A office towers totaling 497,000 sf are underway downtown with a third on the horizon with the approval of the Related Companies' One Flagler Tower totaling 270,000 sf. Net absorption ended the year relatively flat, but in positive territory at 186,787 sf.
Click Here to Download the Full Report: Palm Beach County Office Market Report | Year-End 2019
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