Broward Office Market
Annual full-service asking rental rates increased slightly by 1.1% quarter over quarter to a new all-time-high of $38.14/SF. Vacancy rose by 10 basis points quarter over quarter to 15.1% as demand softened and supply remained stagnant. There is one 174,790-SF project currently under construction, the T3FAT Village East developed by Hines, which is 21.5% pre-leased and slated for a 2026 delivery. Apart from the project currently underway, there have been no other new construction starts over the past year. Total leasing activity for the second quarter was 666,816 SF, reflecting a 12.4% decrease from the previous quarter. The average lease size rose by 235 SF to 3,004 SF, though this remains below the pre-pandemic average of 3,632 SF from 2008 to 2019.
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.