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.
The Palm Beach County office market is steady, with average direct asking rate unchanged from Q2 2018 at $29.49/SF. A very slight increase in vacancy rates, 10 basis points, has not been enough to lower asking rates. Among the largest office leases signed this quarter was Intech’s lease of 25,678 s.f at 250 S Australian Ave, West Palm Beach. Review the Palm Beach Market Office Report by clicking here.
The Palm Beach County industrial market continues to be tight, with vacancy rates holding at 2.70%! With very little construction delivered in the past three quarters, asking rental rates keep climbing, now at $8.88/SF – up $.20 from the previous quarter. Among the largest industrial sales this quarter was Baron Signs Manufacturing’s sale of the 35,829 SF manufacturing building at 900 W. 13th St., Riviera Beach. The property sold for $3.6 million ($100.48/SF). Review the Palm Beach Market Industrial Report by clicking here.
The Broward County office vacancy rate is at its highest in the past year, now at 8.6%. However, since this is still a very healthy vacancy rate (sub 10%), asking rates have continued to increase. Quoted asking rental rates increased $0.66/SF over the previous quarter to $28.74/SF. Significant market activity included CalSTRS/CBRE Global Investors’ sale of the 261,676 square foot multi-tenant office building at 2400 E. Commercial Blvd., Fort Lauderdale, to Cardinal Point Real Estate for $47.5 million, or approximately $174.28/s.f. Review the Broward Market Office Report by clicking here.
The Broward Industrial market is trending against the rest of the South Florida market, with a continued decrease in asking rental rates, now down to $8.26/SF This is surprising given that net absorption is up and the vacancy rate is down from Q2. This may indicate that this trend could reverse in the next quarter and prices will start to climb again. Among the largest industrial lease signings in the third quarter were USL Cargo Services’ 230,600 s.f. lease at Meridian Business Campus, 3245 Meridian Pky., Weston. Review the Broward Market Industrial Report by clicking here.