Broward County’s office market continues to heat up like the South Florida summer, with decreasing vacancies and increasing rental rates. Broward County’s office sector performance is a big story in an area of very positive commercial real estate headlines. It can be argued that South Florida trails only the two Bay Area bellwethers, San Francisco and the Silicon Valley, in property performance nationwide. Office rental rates in the county — CoStar reported that the market’s average rate increased 1.4 percent during first quarter to $25.14 per square foot — are most likely reaching the top of the arc in the present economic cycle.
Broward County’s office market vacancy decreased 20 basis points to 11.3 percent during first quarter on the strength of more than 401,000 square feet in net absorption. Comcast’s 70,000-square-foot lease at Miramar Centre Business Park, Building 3, in the Southwest Broward submarket was the largest tenant signing of the opening quarter, followed by Nuance Communications’ 17,523-square-foot deal at Sawgrass Lake Center in the Sawgrass Park submarket and American Resource Management Group’s 13,205-square-foot lease at 1401 Building in the Cypress Creek area. Lack of new office development in Broward County, fueled by the overall office space consolidation trend and the high price of real estate in South Florida, constitutes a major factor in the sector’s advancement.
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This is a summary of the article “Broward County’s Office Sector is Operating At Peak Performance”, which originally appeared in SouthEast Real Estate Business, July 2016.
