Q1 2023 Office Space Report: Broward County, FL
Specializes in providing actionable insights into the commercial real estate space for investors, brokers, lessors, and lessees. He covers quarterly market data reports, investment strategies, how-to guides, and top-down perspectives on market movements.
Broward County is known for its beautiful beaches, vibrant nightlife, diverse culture, and numerous attractions that make it a popular tourist destination in South Florida.
The county is home to a diverse range of businesses, including those in healthcare, finance, technology, and hospitality, with major companies such as Carnival Corporation, AutoNation, and Spirit Airlines headquartered in the county.
Unemployment in the county was 2.5% in Q1 2023.
In Q1 2023, Broward County’s office space saw vacancies rise, negative absorption, and average asking rents decline.
General Area Overview & Demographics
Broward County is the second most populous county in Florida. The racial makeup of the county is 56.2% White (non-Hispanic), 24.1% Black or African American, 0.8% Native American, 4.7% Asian, 0.1% Pacific Islander, 11.8% from other races, and 2.4% from two or more races. The Hispanic or Latino population of any race was 28.2%, with the majority (19%) being of Cuban descent.
Broward County, FL Median Household Income & Population
The median household income in Broward County was $61,822 in 2019 according to the U.S. Census Bureau. The per capita income was $31,741 and 12.3% of the population were classified as living below the poverty line. The majority of households (62%) earned between $50,000 and $99,999 annually.
The median age in Broward County was 40.5 years old in 2019 according to the U.S. Census Bureau. The majority of residents were between 25 and 44 years of age (28%), followed by those 45 to 64 (27%) and 18 to 24 (15%). The 65-and-over population was 10%.
Broward County is home to several universities. The largest is Broward College, a two-year public school that enrolls more than 32,000 students. Nova Southeastern University is the county’s only private four-year university and boasts more than 20,000 students. Other notable schools with campuses in Broward County include Florida Atlantic University, Everglades University, and Keiser University.
From stunning beaches to world-class museums, there’s something for everyone in the city. Fort Lauderdale Beach Park is a popular spot for swimming, sunbathing, and people-watching. Other notable attractions include the Museum of Discovery and Science, Sawgrass Recreation Park, and Everglades Holiday Park.
Broward County has a subtropical climate with year-round warm temperatures. The average high temperature in the summer months is 86°F (30°C), while the average low is 72°F (22°C). Winters are mild, with an average high of 76°F (24°C) and an average low of 58°F (14°C). Rainfall is abundant throughout the year, but most prevalent in the summer months.
Summary of Broward County, FL Office Space Performance in Q1 2023
In Q1 2023, office space vacancies in Broward County sat at 11.6%, a slight increase from the previous quarter. Vacancies were highest in the Hallandale submarket at 19.5%.
The lowest vacancy rate was seen in the Commercial Boulevard submarket at 6.1%.
Total net absorption for Broward County office space in Q1 2023 was at -7,000 square feet as more space became available than what was leased.
What are office space rents like in Broward County, FL?
The average direct asking lease rate was $37.15 per square foot for Broward County office space in Q1 2023. Class A rents average $41.38 per square foot.
Rates were highest in the Hallandale submarket at $54.48 per square foot. The lowest rates were seen in the Pompano Beach submarket at $27.86 per square foot.
Purchase & Leasing Activity
Sales activity remained light yet active in Q1 2023. Leasing activity for Broward County office space totaled over 500,000 square feet in the first quarter.
Notable Office Space Deals in Broward County in Q1 2023
There were several notable deals that took place for Broward County office space in Q1 2023:
- Ford Motors leased 92,000 square feet at Intl. Corp Park Sawgrass.
- Weiner Museum of Decorative Arts leased 29,000 square feet at the MiniMed Building.
- Keiser University Pembroke Pines campus sold for $33 million at $427 per square foot.
- Specialty Retina Center purchased 54,518 square feet of the Sample Executive Center for $9 million. at $164 per square foot.
These are select examples among other activity.
New Office Space Development Activity in Broward County in Q1 2023
In the first quarter of 2023, 182,365 square feet of new office space projects were under construction.
The Hallandale submarket saw the greatest number under construction at approximately 111,000 square feet.
New completions for the quarter totaled 70,000 square feet, which were found solely in the Hollywood submarket.
Market Forecast for Broward County’s Office Space Market
The office market in Broward County is expected to perform steadily throughout H1 2023 amidst healthy leasing activity and competitive rental rates.
Vacancies and net absorption are projected to remain steady for the remainder of 2023. New construction projects and lease rates are projected to increase as the year progresses.
Takeaways for Office Space Investors
Tenant movement for office space in Broward County is trending out of the Central Business District and into the Suburban market due to its affordability and close proximity to home.
Investors may do well to acquire property in the suburban market in the coming year or to capitalize on the newly available spaces opening up in the CBD.
Do your research, stay diligent, and happy investing.
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