Avison Young has released its second-quarter 2020 South Florida office and industrial market reports:
SOUTH FLORIDA REGION MARKET REPORTS | SECOND QUARTER 2020
Record E-Commerce Sales and Demand for Cold Storage Fuel Growth for Miami's Industrial Sector
As the industrial sector positions itself as the commercial real estate sector most insulated from the current pandemic, Miami's industrial market has continued to perform well through mid-year. Net absorption ended the second quarter in positive territory, although significantly down from the same time last year, and vacancy remained below 5% despite new speculative deliveries during the second quarter.
Click Here to Download the Full Report: Miami Industrial Market Report | 2nd Quarter 2020
Miami's Office Market Dips Into Negative Territory Amid Suspended Leasing Activity
After several quarters of consistent growth, suspended leasing activity during the second quarter pushed Miami's office net absorption into negative territory while vacancy rose 74 basis points (bps) to 12.14%. Although there was an uptick in vacancy during the second quarter, most of it was attributable to already-planned midyear move outs. Sublease space only accounted for an increase of 8 bps quarter-over-quarter, faring better than many expected.
Click Here to Download the Full Report: Miami Office Market Report | 2nd Quarter 2020
Broward County/Fort Lauderdale
Leasing Activity Remains Steady While Vacancy Rises Amid New Speculative Deliveries
Broward's industrial market held steady during the second quarter of 2020 with net absorption trending positive at 206,105 sf at the close of the quarter. Vacancy continued on an upward trajectory, a trend present prior to the outbreak of COVID-19, as large speculative deliveries came online. A record-breaking 2.8 million sf delivered during 2019, and nearly 1 million sf has delivered so far at mid-year 2020.
Click Here to Download the Full Report: Broward County Industrial Market Report | 2nd Quarter 2020
Office Vacancy Rises in Broward As Leasing Slows While Sublease Space Remains Under Control
Broward's office market began to feel the effects of the COVID-19 outbreak during the second quarter as leasing velocity dropped dramatically with total volume for the year-to-date down 44% when compared to the same time last year. Although many expected a spike in vacancy and a glut of sublease space during the second quarter, much of the space that returned to the market has been attributable to already planned mid-year move-outs.
Click Here to Download the Full Report: Broward County Office Market Report | 2nd Quarter 2020
Palm Beach County/Boca Raton/West Palm Beach
Palm Beach County's Industrial Market Remains Tight with Record Deliveries Expected Later in the Year
Palm Beach County's industrial market remained tight and market fundamentals held steady during the second quarter of 2020 with net absorption trending positive at the close of the quarter. While vacancy has hovered around 3% for the last few years, it rose slightly by 30 basis points (bps) quarter-over-quarter. With several large deliveries planned by the end of the year and a weaker demand outlook as a result of the pandemic, vacancies are expected to rise by year-end.
Click Here to Download the Full Report: Palm Beach County Industrial Market Report | 2nd Quarter 2020
Palm Beach County's Office Market Shows Resiliency Amid Decelerated Leasing Activity
Palm Beach County's office market showed resilience during the second quarter of 2020 as leasing activity decelerated significantly. Net absorption remained in positive territory at the end of the quarter, faring better than both Broward and Miami's office markets which both trended negative. Although overall vacancy rose by 117 basis points (bps) year-over-year, a significant uptick in sublease vacancy has not yet emerged.
Click Here to Download the Full Report: Palm Beach County Office Market Report | 2nd Quarter 2020