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Q4 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.

During this fourth quarter all markets have shown an increase in vacancy rates excluding the Palm Beach Industrial market where vacancy has decreased 60 basis points from the previous quarter.  Rental rates have also increased in all markets other than the Broward Industrial market – which decreased only slightly, by $0.04 per s.f.  All markets experienced negative net absorption of space, except Palm Beach Industrial, which had over 250,000 s.f. positive net absorption for the 2nd straight quarter.  Read on to see how the Palm Beach and Broward County markets performed during the fourth quarter.

The Palm Beach County office market has seen an increase in vacancy of 20 basis points from the previous quarter to 10.3%. Rental rates have increased for the 19th straight quarter despite COVID. Among the largest office lease signings in the fourth quarter were Baptist Health’s 37,982 sf lease at Boca Raton Innovation Campus, 4950 Communication Ave.; and InCapital Holdings, LLC ‘s 18,066 sf  lease at 25 SE 4th Ave, Delray Beach. Among the largest sales in the Palm Beach office market this quarter were SF Partners’ sale of the Concept Towers, a two-building office complex totaling 96,674 sf.  The properties sold to Allen Chelminsky for $10,900,000 and were 82% occupied at the time of sale. In addition, Ansca sold the 49,708 square foot medical office building located at 7593 West Boynton Beach Boulevard in Boynton Beach, FL to Woodside Health for $13.4 million.  Review the full Palm Beach Market Office Report by clicking here.

The Palm Beach County industrial market vacancy rate decreased by 60 basis point from the previous quarter, down to 3.7%. Net absorption has increased from the previous quarter, now at 270,093 sf. Among the largest industrial lease signings in the fourth quarter were Florida Microelectronics, LLC’s 70,554 sf lease at 1601 Hill Ave., West Palm Beach, and Tire Hub’s 40,500 sf lease at 305 Haverhill Rd., Lake Worth. Among the largest sales this quarter were TPA Group, LLC’s sale of the 220,000 sf warehouse property built in 2020 at 15335 Park Of Commerce Blvd, Jupiter, to MDH Partners for $27,160,000 and, Dalfen Industrial’s sale to Goldman Sachs of an 80% partial interest in the 208,000 sf building at 3774 Interstate Park Road N. in Riviera Beach to for $14,760,000.  Review the full Palm Beach Market Industrial Report by clicking here. 

The Broward County office market has shown an increase in rental rates, up $1.27/s.f. to $33.85, even while vacancy rates continue to go up.  Office vacancy rates in the county ended the quarter at 10.30%, up 60 basis points from Q3. Net absorption was negative at -67,773 sf.  More sublease space has hit the market, with the supply at 398,555 sf at the end of the quarter, an increase of more than 50,000 sf from Q3. Among the largest office lease signings in the fourth quarter were Baker Concrete Construction, Inc’s 11,721 sf lease at 5555 Anglers Ave in Fort Lauderdale; and Better NOI’s 9,902 sf lease renewal at 2900 Monarch Lakes Blvd in Miramar. Among the largest sales in the Broward office market this quarter were Starwood Capital Group’s sale of the 4-building Crossroads Business Park, with the first of the four buildings located at 8151 Peters Rd., Plantation. The 4 buildings totaled 294,729 sf, and sold to C-III Capital Partners for $78,418,000. Cypress Corporate Center, LLC purchased the office tower at 1901 W. Cypress Creek Rd., in Ft. Lauderdale. The building, built in 1987, was sold by ICM Asset Management for $17,500,000 and was 86% leased. Review the full Broward Market Office Report by clicking here.

The Broward County industrial market vacancy has gone up 20 basis point from the previous quarter to 7.8%. Net absorption was negative at -7,469 sf. Leasing activity was the strongest since Q1 2015 with over 2.4 million sf leased this quarter. Among the largest industrial lease signings were Amazon’s leases for 147,690 sf at 1201 NW 64th Street, 88,266 sf at 3200 E 33rd Ave., and 139,320 sf at 6320 NW 12th Ave. in Pompano Beach; as well as JC White’s 85,000 sf short-term sale-leaseback at 3501 Commerce Pkwy, Miramar. Among the largest sales in the fourth quarter were Elion Partners’ acquisition of a 180,000 sf last-mile logistics center, sold by Q-Med for $31,500,000; and JC White’s sale (and short-term leaseback) of its 85,000 sf showroom/distribution facility at 3501 Commerce Pkwy.,Miramar for $13,650,000 Review the full Broward Market Industrial Report by clicking here.