This July, MSP Capital, a real estate private equity firm headquartered in Dallas, Texas, purchased an office and warehouse complex in Davie, Broward County, Florida, for $50 million.
The cost per square foot was $254. The complex consists of eight buildings with 120 current tenants. The occupancy rate has been high for many years.
The market of office and industrial real estate in the Broward County has shown great performance, according to the latest report by Colliers, a professional services and investment management company. The vacancy rate in the office market dropped to 11.7% compared to 12.7% in the same period of the previous year. The asking rental rates reached $37.06 per square foot, while last year they were $34.50.
The vacancy rate of the Broward County industrial premises in the second quarter of 2022 was only 3.6% (compared to 6.4% in 2021). The asking rental rates rose to $11.56 per square foot ($9.53 in 2021).
Terreno Realty from San Francisco recently paid $20 million for an aviation maintenance facility in Medley, Miami-Dade County, Florida. A mixed-use facility in the same city with indoor go-kart track, offices, and small warehouses was sold to another buyer for $38 million.
Available land for development is growing scarcer while the demand from tenants in the South Florida industrial real estate market remains consistently high, as this data shows.