Construction moved forward to start the year with over 1.3 MSF currently under development. Expected completions in the second half of the year will help supply in the market. Although leasing activity was down, strong tenant occupancies in the first quarter pushed absorption positive. Vacancy was 3.3%, down 60 BPS YOY and the lowest rate since 2014.
- LIMITED SPACE OPTIONS STIFLED DEMAND
Leasing activity in Broward County slowed in the first quarter, down to 205,188 SF as available space options dwindled. Q1 recorded the lowest quarterly new deal volume since the start of 2020.
- CONSTRUCTION PUSHED FORWARD
Over 1.3 MSF of projects are currently under construction in Broward County, up 200,000 SF from the previous quarter. Expected completions in the second half of 2023 will replenish supply in a land-constrained market.
- TENANT OCCUPANICES BOOSTED ABSORPTION
Despite a lackluster quarter of new deals, large tenant occupancies including William Sonoma, Nations Benefits, and Amerant Bank pushed Q1 absorption to 290,494 SF.
- VACANCY REACHED POST PANDEMIC LOW
Broward County’s vacancy fell 60 BPS from the previous year, down to 3.3%. Vacancy was at the lowest recorded rate since the market low in Q4 2018.
- RENTAL RATES CONTINUED TO CLIMB
Overall rent in Broward County experienced 17.6% YOY growth, finishing the quarter at $14.16 PSF NNN. Record high rates have been achieved in the market for five consecutive quarters.