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.
There were some significant changes this quarter: three of the four markets we cover saw negative absorption of at least 200,000 s.f. and increasing vacancy. Still, rents continued to grow. Was this a sign of a market turnaround, or just an aberration? One quarter will not tell us, but it’s something to watch for the rest of the year. Read on to see how the Broward and Palm Beach County markets performed so far in 2019.
The Palm Beach County office market has seen strong rent growth and high absorption (positive 239,106 s.f.), as well as a decrease in the vacancy rate – now down to 9.30%. Among the largest office lease signings in the first quarter were FlexShopper, LLC’s lease of 21,622 s.f. at 901 Yamato Rd., Boca Raton; and Saxena White PA’s 12,798 s.f. lease at 7777 Glades Rd, Boca Raton. Among the largest sale between joint venture Mainstream Capital Partners and CarVal Investors of two office buildings totaling 352,043 located in Boca Raton, FL to a joint venture between Mainstreet Capital Partners and Partners Group AG for $68.35 million.
Review the full Palm Beach Market Office Report by clicking here.
The Palm Beach County industrial market had a slight increase in vacancy (now up to 3%), 50 basis points higher than the previous quarter. Rent is higher this quarter at $8.85/s.f., but absorption is down significantly, at negative 213,030 SF. Among the largest industrial lease signings in the first quarter were Quantachrome Instruments’ 52,505 s.f. warehouse lease renewal at 1900-1920 Corporate Dr., Boynton Beach; and PLOT Freight Services 51,296 s.f. lease of warehouse space at 401 N Cleary Rd., West Palm Beach.
Review the full Palm Beach Market Industrial Report by clicking here.
Asking rents in the Broward County office market continue to climb, up $.85/SF from the previous quarter. The vacancy rate is at 8.2%, 30 basis points higher than the previous quarter, and there was a significant decrease in the net absorption at negative 215,196 s.f. Among the largest office lease signings in the first quarter were Universal Property & Casualty Insurance Company’s 45,778 s.f. lease at 5341 NW 33RD Ave, Fort Lauderdale; and Infinity Behavior Health’s 28,608 s.f. lease at 4620 N State Road 7, Lauderdale Lakes.
Review the full Broward Market Office Report by clicking here.
The Broward County industrial market is still very strong, with asking rental rates increasing by $0.32/SF this quarter, up to $8.76/s.f. But vacancy rates are up 90 basis points to 3.80%, and net absorption was negative 304,904 s.f., both probably due to the 751,421 s.f. of new construction in the first quarter. Among the largest industrial lease signings in the first quarter were Blue Dog Chemical’s 121,978 s.f. lease at 1971 N. Powerline Rd. Pompano Beach; and Propulsion Technologies 124,280 s.f. lease at 15301 SW 29th St., Miramar. Review the full Broward Market Industrial Report by clicking here.