Broward County Office Vacancy Rate Continues to Fall
According to a third quarter report on the office market in Broward County by commercial brokerage firm CBRE, the overall vacancy rate for the region fell 40 basis points from the second quarter and 210 basis points from a year earlier to 9.3% at the end of the third quarter of 2019.
FORT LAUDERDALE, FL—The lack of new supply, combined with already tight market conditions, fueled further reductions in the office vacancy rate in Broward County in the third quarter.
According to a third quarter 2019 report on the office market in Broward County by commercial brokerage firm CBRE, the overall vacancy rate for the region fell 40 basis points from the second quarter and 210 basis points from a year earlier to 9.3% at the end of the third quarter of 2019.
The average asking rent for the region also is on the rise, standing at $22.03-a-square-foot.
CBRE notes in its report that there is currently 685,000 square feet of office space under construction, including the 356,502-square-foot 201 E. Las Olas project, which is expected to be delivered in the fourth quarter in the Downtown Fort Lauderdale market. The Edison Building 1, a 165,000-square-foot office building is expected to be delivered in the fourth quarter of this year in the Southwest Broward submarket.
Broward County posted 127,882 square feet of positive absorption in the third quarter. Four sales transactions closed during the third quarter in Broward County that registered a total investment of $155 million.
“Given the tightness of the Broward office market, available big blocks of space are in short supply,” CBRE states in the report. “Once these projects are delivered, we will see increased interest by occupiers and a boost in leasing activity in the Broward market.”
The largest lease in the third quarter was a 77,105-square-foot lease by Hayes Medical Staffing at the Cypress Financial Center.
CBRE predicts that business development activity and employment growth will to bolster the Broward County economy and office market going forward. The brokerage firm expects positive absorption and lower vacancy rates will continue to be prevailing trends for this market.