Supply & Demand
Broward County’s overall vacancy rate held steady quarter-over-quarter (QOQ) at 4.1% in Q3, a slight 10 basis point (bps) increase year-over-year (YOY). Three consecutive quarters of net occupancy losses have nudged vacancy upward in 2026, but a lack of new supply has limited the broader market impact. Just 483,000 square feet (sf) has been delivered since 2024, representing the three lowest annual totals in the past 10 years. Although deliveries remained muted, the development pipeline grew to more than 806,000 sf by quarter-end, its largest total in over six years. Miramar Cove and The Pomp remained the market’s key developments, accounting for nearly 75.0% of total development activity and located in the Southwest Broward and Pompano Beach submarkets, respectively. The recently announced Dick’s House of Sport will add another 120,000 sf in Hollywood. With no major deliveries slated until midyear 2027, overall vacancy is expected to remain near current levels heading into next year.
Broward leasing activity continued to trend downward, with just under 1.7 million square feet (msf) of year-to-date (YTD) deal volume, a 10.3% decrease from the same period one year ago. Net occupancy losses in Q3 totaled almost 51,000 sf, bringing YTD absorption to nearly -265,000 sf. Neighborhood Centers and Malls accounted for the net losses, at -229,000 sf and -180,000 sf, respectively, offsetting gains across the other product types. With demand softening, occupancy losses are likely to persist near term, but should taper as new space is delivered, setting the stage for a stronger 2027.
Pricing
Broward County’s overall average asking rental rate remained practically unchanged, with Q3’s $37.03 per square foot (psf) down 0.2% QOQ. Rates rose across every submarket and product type, but annual growth slowed to 2.0% YOY, a 10-year low and well below the record levels of recent years. Sawgrass Park posted a submarket high 2.8% YOY growth to $41.12 psf, while Downtown Fort Lauderdale continued to command premium rates, rising 2.1% annually to $53.10 psf. While rent growth has begun to moderate, rates are expected to keep climbing at a measured pace through year-end. Even as the region’s most affordable market, and one trailing its South Florida peers in rent growth, Broward still holds the third-highest asking average in Florida.
Retail Sales
Broward County retail investment sales spiked in the third quarter. At more than $422.6 million, Q3 volume surpassed the previous two quarters combined and brought YTD sales to over $832.0 million. Deal activity remained in line with this time last year and 12.7% above the market’s 10-year average. The average sale price rose 3.6% YOY to $344 per sf, nearly a $100 per sf premium to the national average. NW Broward/Coral Springs and Pompano Beach remained the key submarkets driving 2026 sales activity. Kimco’s $109.0 million purchase of the 485,000-sf Pompano Marketplace was the largest transaction of both the quarter and the year.
Cap rates ranged from 5.5% to 6.5%, depending on asset quality, location, and tenant mix. The county’s median cap rate of 6.1% sat well below the national average of 7.4%, reflecting strong investor demand for Broward assets. Limited availability and a lack of new supply support strong fundamentals, positioning Broward for 2027 in line with the broader South Florida region.
