2019-07-10_DTZ戴德梁行_Office_Q4_2018_Broward_County_4页_448kb

报告摘要

Broward County Office Market Summary - Q4 2018

Core Content Overview

Broward County's office market in Q4 2018 showed a mix of positive and challenging trends, reflecting the broader economic environment and specific market dynamics.

Economic Indicators

Employment: Broward County added +17,300 jobs in 2018, with the unemployment rate dropping to 2.8%, a decline of 80 basis points (bps) year-over-year (YOY).
U.S. Unemployment: The U.S. unemployment rate was 3.7% in Q4 18, down from 4.1% in Q4 17.
Talent Pool: The county remains attractive to smaller and mid-sized startups, law-firms, engineering, and business services firms, supported by a strong talent pool and competitive rental rates.

Market Indicators

Vacancy Rate: Overall vacancy rate in Broward County was 12.8% in Q4 18, well below the 5-year historical average of 15.8%.
Net Absorption: YTD net absorption was -39,000 square feet (sf), with overall absorption ending the year in negative territory at -38,530 sf.
Leasing Activity: YTD leasing activity totaled 1.9 million sf, with over 75% of this activity occurring in core suburban submarkets.
Rental Rates: Full service overall asking rents increased by +3.0% YOY to $30.18 psf, driven by rising occupancy and build-out costs.

Submarket Performance

Submarket	Inventory (SF)	Direct Vacant (SF)	Overall Vacancy Rate	YTD Net Absorption (SF)	YTD Leasing Activity (SF)	Under Construction (SF)	Average Asking Rent (All Classes)	Average Asking Rent (Class A)
Ft. Lauderdale CBD	5,359,222	736,896	14.8%	-70,387	336,930	478,957	$41.98	$46.61
Suburban Broward County	22,312,738	2,589,609	12.3%	31,857	1,578,287	228,600	$26.73	$32.52
Cypress Creek/Commercial	6,565,522	1,165,762	19.0%	(8,098)	515,313	0	$25.15	$31.35
Hollywood/Hallandale	2,377,334	255,133	10.9%	(16,937)	182,583	0	$28.62	$33.76
West Broward	6,868,680	476,054	7.8%	24,370	588,468	63,600	$28.89	$32.68
Sunrise	3,051,730	239,007	8.8%	23,515	325,792	0	$29.18	$32.14
Plantation	2,980,201	214,029	8.1%	4,499	250,318	63,600	$27.90	$33.87
Weston	836,749	23,018	3.0%	(3,644)	12,358	0	$35.32	$36.68
Northeast Broward	1,765,430	208,027	11.9%	18,749	140,357	0	$23.26	$30.50
Pompano Beach	704,911	129,807	18.8%	(26,149)	36,798	0	$22.13	$0.00
Deerfield Beach	1,060,519	78,220	7.4%	44,898	103,559	0	$25.80	$30.50
Southwest Broward	2,927,780	280,287	9.7%	18,650	86,971	165,000	$32.90	$35.15
Pembroke Pines/Cooper City	851,174	115,601	13.6%	(15,857)	25,396	165,000	$30.93	$37.00
Miramar	2,076,606	164,686	8.1%	34,507	61,575	0	$34.26	$34.90
Northwest Broward	1,807,992	45,966	11.3%	(8,430)	15,741	0	$24.04	$0.00
Coral Springs	1,339,643	158,380	11.8%	3,553	48,854	0	$26.18	$29.00
Tamarac/Margate	468,349	45,966	9.8%	(8,430)	15,741	0	$16.67	$0.00
Broward Total	27,671,960	3,326,505	12.8%	-38,530	1,915,217	707,557	$30.18	$37.23

Key Market Trends

Class A Space:
- Vacancy rate remained relatively stable at 10.8%.
- Average asking rent increased +3.4% to $37.97 psf.
- Strong demand in Southwest and Northeast Broward led to rent increases of over 17.0% since year-end 2017.
Class B Space:
- Vacancy rate increased +110 bps to 13.9%.
- Average asking rent rose +4.3% to $28.24 psf.
- Comprise nearly 50% of the total market inventory.
Class C Space:
- Vacancy rate was 15.4%.
- Average asking rent was $21.22 psf.
- Net absorption was negative at -46,733 sf.

Key Lease Transactions (2018)

200 SW 1st Avenue: AutoNation renewed lease, 204,337 sf.
1613 NW 136th Avenue: SR Technologies signed a new lease, 77,116 sf.
300 NW 82nd Avenue: Aetna signed a new lease, 75,042 sf.
4410 N State Road 7: American Resource Management signed a new lease, 29,431 sf.

Key Sales Transactions (2018)

1 East Broward: Sold for $108,500,000 or $308 psf, CBD.
Coastal Tower: Sold for $47,100,000 or $180 psf, Cypress Creek / Commercial.
Sawgrass Lake Center: Sold for $57,400,000 or $240 psf, Sunrise.
Sawgrass Commerce Center: Sold for $27,625,000 or $180 psf, Sunrise.

Market Outlook

Absorption: Expected to increase substantially in Q1 2019 due to new building deliveries and tenants taking occupancy.
Rental Rates: Cushman & Wakefield anticipates continued rent growth, which is pushing key developers to move forward with proposed construction projects.
Investor Sentiment: Strong investor interest in well-positioned assets, especially in the CBD and suburban areas.
Opportunity Zones: Broward County has 30 census tracts designated as opportunity zones, with 11 near the Fort Lauderdale CBD, offering tax incentives for investments in low-income communities.

Conclusion

Broward County's office market in Q4 2018 demonstrated resilience despite macroeconomic uncertainties, with positive fundamentals, increased rental rates, and strong leasing activity. The CBD and core suburban submarkets were the most active, while Class B vacancy rates rose due to lackluster occupancy gains. The renewed focus on CBD construction and high tenant confidence suggest a positive outlook for the market in 2019.

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