Demand Still Strong for Industrial Product in Broward County
“We are seeing a little less manufacturing than before, but it’s really of no concern because logistics and e-commerce continue to fuel the growth.”
Avison Young recently negotiated 133,140 square feet of industrial lease transactions in Broward County, Florida. That continues a trend from 2019. Avison Young’s year-end 2019 Broward County industrial report indicated that West Broward posted the lowest vacancy rate in the county at 2.1%. Nearly 2.7 million square feet of new industrial space was completed in the county, of which 1.1 million square feet alone was delivered in Pompano Beach. The submarket still saw 456,773 square feet of net absorption, indicating robust demand.
“We are seeing the same trends that have been affecting the market the last couple of years,” Avison Young Principal Tom Viscount tells GlobeSt.com. “The logistics industry and e-commerce are the main contributors. We are seeing a little less manufacturing than before, but it’s really of no concern because logistics and e-commerce continue to fuel the growth. 2019 was a great year for industrial all-around.”
Viscount notes that with land being scarce, repurposing of existing product is something everyone is considering. Rising construction costs continue to present challenges.
“In Broward County, there is a lot of new product,” Viscount says. “The biggest industrial player in Broward is Bridge, based out of Chicago, with an office in South Florida. They have acquired and assembled large parcels of land in newer parks.”
There is pent-up demand, much of it coming from existing tenants in Broward and Miami-Dade that are expanding. Viscount says Avison Young statistics have it at almost 65 percent of product delivered during 2019 was leased prior to delivery.
“West Broward and Pompano Beach continue to attract and retain industrial space users that value convenient access to locations throughout South Florida’s tri-county area via major thoroughfares,” said Viscount. “Our clients had a differing range of space requirements in these tightening, in-demand submarkets, and it was a pleasure working with the landlords and their representation to meet those needs.”