Broward Office Market
Annual full-service asking rental rates increased to a new historical high of $38.08/SF, a 9.4% increase year over year. Vacancy decreased 20 basis points year over year, ending the second quarter of 2024 at 15.3%, driven in part by a 132,638 SF move-in that resulted in 129,523 SF of positive absorption at the end of the quarter. There is one, 174,790 SF project currently under-construction, the T3 FAT Village East project developed by Hines. There had been no new construction in the prior three quarters. Total leasing activity closed the quarter at 680,932 SF, a 7.1% quarter-over-quarter decline. Leases signed averaged 2,948 SF per deal, continuing a trend of smaller lease deals compared to the pre-pandemic deal size of 3,607 SF between 2008 to 2019.
Broward Industrial Market
The market reported 125,499 SF of negative absorption in the second quarter of 2024, compared with the positive 308,686 SF reported in the previous quarter. While there were no deliveries in the second quarter, the negative absorption led vacancy to tick up by 10 basis points quarter over quarter to 4.1%. Overall asking rental rates in the second quarter of 2024 decreased 0.8% quarter over quarter to $14.34/SF, the second consecutive quarterly decline. The under-construction pipeline remain unchanged quarter over quarter at 171,983 SF, which represents one project being developed by Bridge Development.
Download Broward Industrial Market Report 2Q24