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Q4 2019 Market Reports – Broward & Palm Beach Counties

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: 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.

All markets have shown negative absorption during this quarter and increasing vacancy. Nonetheless, rental rates have continued to climb in both counties and across both property types.  Does this foreshadow an eventual slowdown, or is it just a blip in the continued red-hot growth in our markets?  Time will tell, and for now, read on to see how the Broward and Palm Beach County markets performed during the fourth quarter.

The Palm Beach County office market has seen slightly negative absorption this quarter (-10,696 SF), but not significant enough to indicate a slowdown. Rental rates and vacancy have both increased slightly. Among the largest office lease signings in this quarter were Mill Creek Residential Trust’s 27,079 SF lease at 4855 Technology Way, Boca Raton; and Jupiter Medical Center’s 22,500 SF at 1701 Military Trail, Jupiter, FL.  Among the largest sales were C-III Capital Partners sale of 143,966 SF office building located at 1601 Forum Place in West Palm Beach to Suffolk Advisors LLC for $32.5 million.  In addition, L&B Realty Advisors, LLP sold 98,300 SF Glades Twin Plaza and 98,300 SF Glades Plaza to Sterling Organization together with Glades Plaza retail center as part of a portfolio sale for approximately $120,000,000, or $729.40/SF! Review the full Palm Beach Market Office Report by clicking here.

The Palm Beach County industrial market has seen substantial negative absorption (-104,043 SF) despite only 20,000 SF of new construction. Among the largest industrial lease signings in the fourth quarter were Amazon’s 18,433 SF lease and FIW Solutions 15,297 SF lease, both at the Turnpike Crossing Industrial Park, 6729 Belvedere Rd, West Palm Beach.  Among the largest sales this quarter were South Florida Real Estate Advisors I LLC sale of the 40,000 SF warehouse located at 7700 High Ridge Rd, Boynton Beach for $6,500,000 or $162.50/sf, as well as the sale of the 47,892 SF at 6600 High Ridge Road, Boynton Beach for $5,325,000 or $111.19/SF, sold by JS Eade Family Limited Partnership. Both properties were purchased by High Ridge Road Investors, LLC. Review the full Palm Beach Market Industrial Report by clicking here. 

Net absorption decreased in the Broward County office market during the fourth quarter ending at -124,347 SF, despite less than 20,000 SF of new inventory added to the market. Among the largest office lease signings this quarter were Hayes Medical Staffing’s 72,517 SF leased at 5900 N Andrews Ave., Fort Lauderdale, and US Health’s 25,907 SF lease at 500 E Broward Blvd., Fort Lauderdale.  Among the largest sales in the Broward County office market this quarter were M-M Properties’ sale of the 348,891 SF buildings at 1550, 1551, 1560 and 1601 Sawgrass Corporate Parkway, Sunrise to the Brookdale Group for $80.25 million or $230/SF, and DWS Group sold two office buildings totaling 112,456 SF to MG3 REIT LLC for $32.65 million, or $290/SF. Review the full Broward Market Office Report by clicking here.

The Broward County industrial market is still strong, with asking rental rates increasing by $0.24/SF this quarter – it has also seen negative net absorptions (-155,790 SF). Among the largest industrial lease signings in the quarter were PODS Enterprises’ 92,165 SF lease at Bridge Point FLL Logistic Center, 3233 SW 12th St., Fort Lauderdale and Velocity Aerospace Group’s 51,000 sf lease at Bridge Point Powerline Road, 1981 N Powerline Rd, Pompano Beach. Among the largest sales this quarter were TIAA/Nuveen’s sale of the 224,650 SF industrial/manufacturing building at 2965 West Corporate Lakes Boulevard, Weston, FL. to Black Creek Group for $32.415 million, or $144/SF. Bridge Development Partners sold three industrial properties totaling 467,832 SF to Morgan Stanley & Co. LLC for $68,950,726, or or $147/SF. Review the full Broward Market Industrial Report by clicking here.