Broward Office Market
Annual full-service asking rental rates increased slightly by 0.7% quarter over quarter to $37.66/SF, reaching an all-time high. Vacancy increased 10 basis points quarter over quarter, ending the first quarter of 2025 at 14.6%. There is one 174,790-SF project currently under construction, the T3FAT Village East developed by Hines, which is 21.5% pre-leased. Apart from the project currently underway, there have been no other new construction starts over the past year. Total leasing activity closed the first quarter at 580,691 SF, representing a 29.6% quarter-over-quarter increase by square footage. Leases signed averaged 2,400 SF per deal, showing an increase of 91 SF compared to last quarter’s average. Despite this slight uptick, the average deal size remains smaller than the pre-pandemic average of 3,554 SF observed from 2008 to 2019, highlighting a persisting trend of smaller lease agreements.
Broward Industrial Market
The market realized 47,938 SF of positive absorption in the first quarter of 2025. Muted leasing activity, tariff uncertainty, and a temporary lag in the construction pipeline primarily attributed to the reduced, but improving level of absorption. With no deliveries reported in the first quarter of 2025, demand outpaced supply. However, new deliveries despite the demolition of existing inventory slated for redevelopment, such as the Apex Logistics Park, led the vacancy rate of inventory to increase by 30 basis points year over year to 4.3%.
Overall asking rental rates in the first quarter of 2025 decreased by 0.6% from the previous quarter’s all-time high to $14.92/SF. In the first quarter of 2025 the under-construction pipeline continued to grow to 1.3 MSF. Projects are currently 8.7% preleased.