The vacancy rate of retail space in Broward County, Florida, has been reducing for eight consecutive quarters. As a result, the asking rent per square foot in this region soared to $26.84, which has become a new record.
In the fourth quarter of the previous year, only 4% of rental space was available for new tenants, which is 0.7% less than in the same period of 2021. This suggests that the 30,500 square meters of retail space that is currently under construction will be snatched away as soon as the buildings are commissioned.
According to a report by the investment firm Colliers, the influx of new tenants to the market, combined with a marketing strategy of drawing online buyers to offline stores will probably ensure a healthy situation in the market until the end of 2023. Flagship shops will open in regions with a high population growth.
The in-migration of retailers safeguarded the corresponding sector of the real estate market in Broward County from macroeconomic shocks, and the market is likely to flourish in 2023.
In the fourth quarter of 2022, the share of vacant office and industrial space in Broward County has slightly increased. For instance, 11.7% of office premises were available in December. Their share has been growing for the second quarter in a row. The share of unoccupied industrial space rose to 4.3%. This value has increased for the first time since the 2nd quarter of 2021.
The asking price of these two categories of properties skyrocketed by 26.7% year-to-year for industrial space (up to $13.86 per square foot) and by 5% in case of office premises. The rent on offices broke another record, rising to $37.22 per square foot.