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Q3 2020 Market Reports – Palm Beach and Broward Counties

Berger Commercial Realty has analyzed the office and industrial markets in both Palm Beach and Broward Counties, to help you keep track of key data.  This information has proved valuable for our clients: tenants, investors, and landlords 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: both the Palm Beach and Broward County office markets saw an increase in both available sublease space and overall vacancy rates. Still, rental rates continued to grow. Leasing activity in the Palm Beach and Broward County industrial markets remained strong and both saw an increase in positive net absorption. Read on to see how the Broward and Palm Beach County markets performed this quarter.

The Palm Beach County office market has seen an increase in sublease inventory with nearly 100,000 s.f. of new sublease space coming to market, as well as an increase in vacancy by 50 basis points (now at 9.9%) over the previous quarter. Among the largest office lease signings this quarter were South University’s 40,000 s.f. lease at 9801 N Belvedere Rd, West Palm Beach and JFK Medical Center’s 15,000 s.f. renewal at 4685 Congress Ave, Palm Springs. Among the largest sales in the Palm Beach office market were Gardens Corporate Center, LLC’s sale of both 3835  PGA Blvd, Palm Beach Gardens, a 109,286s.f. multi-tenant office building and 3825 PGA Blvd, an 111,972s.f. multitenant office building. Review the full Palm Beach Market Office Report by clicking here.

The Palm Beach County industrial market has seen rental rates and absorption improving over the last quarter, with absorption now at positive 229,357 s.f. Vacancy decreased 10 basis point from the previous quarter to 3.9%. Among the largest industrial lease signings in this quarter were IM Management’s 23,613s.f. lease at 15188 Park of Commerce Blvd. S. Jupiter. Among the largest sales this quarter were Serta Simmons Bedding’s sale-leaseback of their 208,000 s.f. industrial warehouse at 3774 N Interstate Park Rd North in Riviera Beach. In addition, Easton & Associates sold an 86,400 square foot industrial warehouse at 501 103rd Avenue in Royal Palm Beach to Cabot Properties Inc. Review the full Palm Beach Market Industrial Report by clicking here. 

The Broward County office market has seen rental rates rising even with vacancy going up to 9.3%, and with nearly double the negative absorption of last quarter (-326,326 s.f. for the quarter). Among the largest office signings in the third quarter were Greenspoon Marder’s 65,922 s.f. lease renewal/expansion at 200 E Broward Blvd, Fort Lauderdale as well as the GSA’s 64,582 s.f. lease at 1248 N. University Drive, Plantation. Among the largest sales in the Broward office market this quarter were Bridge Investment Group’s sale of 413,426 s.f. Bayview Corporate Tower at 6451 N Federal Highway, Fort Lauderdale to a venture between Somerset Properties and Ten Capital Management for $82.5 million. Review the full Broward Market Office Report by clicking here.

The Broward County industrial market has seen vacancy rise 60 basis points from the previous quarter. Leasing activity remained strong, with over 1.3 million s.f. leased this quarter, while net absorption is positive (+83,823 s.f.) for the first time in 2020. Among the largest industrial lease signings in the third quarter were Vital Pharmaceuticals, Inc’s 270,767 s.f. at 20311 Sheridan Street, Pembroke Pines; and US Cabinet Depot’s 103,356 s.f. lease signed at 6301 Lyons Rd, Coconut Creek. Among the largest sales in the third quarter were Elion Partners portfolio sale off 88,000 s.f. industrial building at 2121 NW 15th Ave, Pompano Beach for $15.2 million and the 36,420 s.f. industrial building at 1800 N Commerce Pkwy., Weston for $12.7 million. Review the full Broward Market Industrial Report by clicking here.