Broward Office Market
Annual full-service asking rental rates increased to a new historical high of $37.62/SF, a 9.2% increase year over year. Vacancy increased 20 basis points year over year, ending the first quarter of 2024 at 15.5%, which also represents the average vacancy rate over the past seven quarters since the third quarter of 2022. Under-construction remained flat at 384,790 SF in progress for the past three quarters. Total leasing activity closed the quarter at 665,683 SF, which is 14.3% lower than the average first quarter leasing activity over the past 16 years at 777,044 SF. Leases signed averaged 2,762 SF per deal, continuing a trend of smaller lease deals compared to the pre-pandemic deal size of 3,639 SF.
Broward Industrial Market
The market realized 216,943 SF of positive absorption in the first quarter of 2024, a decline of 66.9% quarter over quarter. Overall asking rental rates in the first quarter of 2024 decreased 1.4% quarter over quarter to $14.30/SF, but grew by 9.7% on a year over year. The under-construction pipeline ended the first quarter of 2024 at 171,983 SF, a 78.2% decrease quarter over quarter, reflecting a decline for the third consecutive quarter. Supply outpaced demand by 401,066 SF in the first quarter of 2024, causing vacancy to increase by 20 basis points quarter over quarter to 4.8%.
Download Broward Industrial Market Report 1Q24