Broward Office Market
Annual full-service asking rental rates increased to a new historical high of $37.05/SF, a 4.7% increase year over year. Vacancy remained flat, unchanged at 16.4% from the previous quarter and decreasing by 60 basis points year over year. Under-construction activity picked up moderately, ending the third quarter of 2023 at 434,399 SF in progress, a 3.7% increase quarter over quarter. While total leasing activity declined 61.0% quarter over quarter to end at 508,876 SF, year-to-date leasing is 2.8 MSF, which is 13.5% higher than the third-quarter year-to-date average of 2.4 MSF since 2007.
Broward Industrial Market
The market reported 220,850 SF of positive absorption in the third quarter of 2023, the second consecutive quarter where demand outpaces supply, resulting in vacancy declining 10 basis points quarter over quarter to 4.6%. Rents ease from the historical high to $13.53/SF in the third quarter, but reflecting a 21.3% increase year over year. Construction pipeline picked up slightly, with 1.4 MSF currently under construction as of the end of the third quarter of 2023, a 5.3% increase from the previous quarter. Total leasing activity picked up significantly, reporting 2.3 MSF at the end of the third quarter, representing a 67.9% increase over the previous quarter and sharply reversing a downward trend in recent quarters.Download Broward Industrial Market Report 3Q23