By Chris Metzger, Industrial Brokerage, Broward & Palm Beach Counties
The summer is scorching hot, and so is the South Florida industrial market. With demand at an all-time high and minimal new construction, vacancy rates in Broward and Palm Beach Counties have dropped like a rock to record lows of 4.4% and 3.6%, respectfully. The vacancy rate of Pompano Beach, the largest submarket in Broward County, is down to 2.2%.
This fireball of activity has resulted in lease rates rising about $1.00 per square foot over the past 18 months. Asking NNN lease rates for newer product is up to about $7.50 to $8.00 per square foot with negotiated leases, with about 10% office, at about $7.00 to $7.50 NNN per square foot.
What’s fueling this commercial combustion is the home grown growth of existing companies, some doubling in size, and national companies parachuting in to South Florida to grab their fair share of our peak population profits.
Third quarter stats should be even more amazing with vacancy expected to continue to melt down even further and deals such as the Graybar Electric Company’s 161,443 square foot lease further illustrating that the South Florida industrial market is sizzling hot.
Chris Metzger joined Cushman & Wakefield in 1983 to form the industrial and land department. He is now one of South Florida’s leading commercial/industrial sales and leasing agents. Chris serves as Executive Director. His South Florida Industrial Team which includes Rick Etner, Christopher Thomson, Matthew McAllister, and J.D. Brussels, dominates the South Florida industrial and land market.