Read our Five Fast Facts for more insight into the key trends that impacted the Broward industrial market during the second quarter.
- OCCUPANCIES BOOSTED NET ABSORPTION
Tenant move-ins, including Specialized Freight Carrier, CRG, Dauerflora, and Southern Carlson, boosted overall absorption to 511,597 SF at the midyear point.
- VACANCY CONTINUED TO DECLINE
Broward County’s vacancy dropped to 3.2% at the close of Q2. This was down 70 BPS YOY, and the lowest rate recorded since 2018.
- INDUSTRIAL DEVELOPMENT DISCIPLINED
No completions occurred through the first half of 2023, with seven buildings totaling over 1.3 MSF under construction. Expected completions should provide much needed available supply to current tight market conditions.
- DEAL ACTIVITY NORMALIZING
The 1.1 MSF of YTD leasing activity was down 55.6% YOY. This marked the second consecutive quarter deal activity was below the seven-figure mark from the robust quarterly performances seen since Q3 of 2020.
- ASKING AVERAGE RATE REACHED NEW HIGH
Rental rates in Broward County pushed the overall average past the $15.00 PSF NNN threshold with a YOY increase of 21.5%. W/D rates grew almost 25% YOY, ending the quarter at $15.01 PSF NNN.