Leasing activity in Broward County slowed during the first quarter of 2023, the lowest total seen in over 2 years. Vacancy rates held fast at 17.6%, while absorption swung negative to start the year. The construction pipeline continues to grow, with over 3.5 MSF of proposed deals in the market. Rental rates continued to rise, up over $38.00 PSF FSG for a new market high.
- LEASING ACTIVITY SIMMERED
Leasing activity in Broward County slowed during the first quarter. The 204,604 SF of new deals marked the lowest quarterly total seen in the past three years.
- RENTS REACHED HISTORIC LEVEL
Rental rates in Broward County continued to rise, up 4.3% YOY, finishing the quarter at $38.04 PSF FSG. This marks the first time the market has recorded an overall average over $38.00 PSF.
- VACANCY HELD FAST
Overall vacancy finished Q1 at 17.6%, remaining stable since the previous quarter despite a 120-BPS year-over-year increase.
- ABSORPTION SLOWED
Overall absorption swung negative to start the year, attributed to tenant vacancies in the suburban submarkets. The CBD recorded 26,691 SF of positive absorption, highlighting the flight-to-quality trend seen nationwide.
- CONSTRUCTION PIPELINE CONTINUED TO GROW
While construction is currently limited, over 3.5 MSF of proposed projects are currently planned in the market.
