Q1 2023 Retail 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 home to the Florida Everglades, a unique and vast subtropical wilderness that’s a UNESCO World Heritage Site as well as a major tourist attraction.
From 2010 to 2020, the population of the county increased by 11.2%, from 1,748,066 to about 1,944,375.
In Q1 2023, Broward County’s retail space saw positive absorption, steady vacancies, and increasing rents.
General Area Overview & Demographics
Broward County is located in southeastern Florida, with Fort Lauderdale as its county seat and largest city. It is the second-most populous county in the state, covering an area of 1,323 square miles. The county is part of the Miami metropolitan area and boasts a diverse population, including a significant number of residents from Latin America and the Caribbean.
Broward County, FL’s Economy & Industry
The county has a thriving economy, with a mix of industries that include tourism, healthcare, finance, and technology. The Port Everglades, located in the county, is one of the busiest cruise ports globally and a significant contributor to the local economy. The county is also home to several successful small and medium-sized businesses that provide employment opportunities and drive economic growth.
It has a robust transportation system, including a network of highways, buses, and trains. It also has an international airport, Fort Lauderdale-Hollywood International Airport, providing convenient access to other parts of the country and the world.
With a high school graduation rate that is slightly higher than the national average, education is a priority. The county is home to many excellent educational institutions, including Broward College, Nova Southeastern University, and Florida Atlantic University. These institutions provide opportunities for higher education, research, and development, contributing to the county’s intellectual and economic growth.
The county’s natural beauty is another significant attraction, with a range of activities for outdoor enthusiasts. The beaches are a major draw, with their crystal-clear waters and pristine sands, attracting visitors from all over the world. Broward County also boasts several parks and nature reserves, offering hiking, biking, and bird-watching opportunities.
Summary of Broward County Retail Space Performance in Q1 2023
Overall vacancies for Broward County retail space was 3.9% in Q1 2023. Vacancies were highest in the Plantation submarket at 6.1% while Hallandale saw the lowest retail vacancy at 1.4% in Q1 2023.
Retail space absorption was positive for Broward County, FL in Q1 2023 at 35,961 square feet.
What are retail space rents like in Broward County?
The average direct asking lease rate for Broward County retail space was $27.11 per square foot in Q1. Rates were highest in the Downtown Fort Lauderdale submarket at $37.21 per square foot.
The lowest retail lease rates were seen in the Cypress Creek submarket at $18.93 per square foot.
Purchase & Leasing Activity
Sales activity for Broward County’s retail space market remained active in Q1 2023, with several large deals occurring at valuations of anywhere between $14 million and $24 million.
Retail leasing activity was strong in the first quarter, with the Plantation, Fort Lauderdale, and Hollywood submarkets seeing the most activity.
Notable Retail Space Deals in Broward County in Q1 2023
There were several notable deals that took place for Broward County’s retail space market in Q1 2023:
- OMAX Invest bought 29,350 square feet at Pembroke Centre for $23 million at $784 per square foot.
- Phillips Edison and Co bought 70,300 square feet at Shops at Sunset Lakes for $14.8 million at $211 per square foot.
- Puttshack started a new lease of 25,000 square feet at Dania Pointe.
- Gastro Health, LLC renewed its lease of 8,250 square feet at Jacaranda Plaza.
These are select examples among other activity.
New Retail Space Development Activity in Broward County in Q1 2023
New retail deliveries for the quarter in Broward County totaled 18,448 square feet. All of this square footage of new deliveries was in the Hollywood submarket.
There were 501,047 square feet of new retail space under construction at the close of Q1 2023: Nearly half of this new construction square footage was located in the Hallandale submarket.
Market Forecast for Broward County’s Retail Space Market
Retail vacancies are expected to decrease in Broward County as the year progresses, while absorption is projected to increase.
New retail construction square footage and average asking lease rates are projected to increase throughout the remainder of 2023.
Takeaways for Retail Space Investors
Many new retailers are looking to establish flagship locations in South Florida. Demand for space remains high while supply remains low. Investors may do well to add new construction to the pipeline or acquire new deliveries quickly.
Do your research, stay diligent, and happy investing.
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