Broward Office Market
Annual full-service asking rental rates increased slightly by 0.5% quarter over quarter to $37.70/SF, reflecting a 1.0% decline from the all-time high of $38.09/SF reported in the second quarter of 2024. Vacancy decreased 20 basis points quarter over quarter, ending the fourth quarter of 2024 at 14.8%, driven by positive absorption of 71,356 SF coupled with no deliveries. There is one 174,790-SF project currently under construction, the T3FAT Village East developed by Hines. Besides the underway project, there has been no other new construction starts over the past three quarters. Total leasing activity closed the fourth quarter at 409,536 SF, representing a 49.9% quarter-over-quarter decline. Leases signed averaged 2,275 SF per deal, continuing a trend of smaller lease deals compared to the pre-pandemic average deal size of 3,633 SF from 2008 to 2019.
Broward Industrial Market
In the fourth quarter of 2024 net absorption ended at 139,843 SF, improving on the negative absorption reported in the previous two consecutive quarters. Still, for 2024 the total demand was 213,817 SF, the lowest yearly volume reported since 2010. With no deliveries reported in the fourth quarter of 2024, demand outpaced supply, causing the vacancy rate to decrease by 20 basis points quarter over quarter to 4.0%. Overall asking rental rates in the fourth quarter of 2024 increased 3.4% quarter over quarter to $15.09/SF, a new all-time high. In the fourth quarter of 2024 the under-construction pipeline surged, more than tripling quarter over quarter to 1.0 MSF and in line with the historical quarterly average of 1.0 MSF from 2008 to 2023. Projects are currently 8.8% preleased.
Download Broward Industrial Market Report 4Q24