Fort Lauderdale Q4 2018 Market Report
In Deerfield Beach, which has approximately 1.5M square feet of office space, there has been a flurry of recent activity. Butters Realty & Management recently constructed 87,068 SF of office space in 4Q 2017/1Q 2018 - known as the Hillsboro Technology Drive Center and as of Q3 2018, is 90% leased. In Deerfield Beach there are 5,665 business establishments that support over 62,000 employees. The main corridor is along North Federal Highway with crossroads of Sample Road to the South and Hillsboro Boulevard to the north and down to Atlantic Boulevard. The largest office development project was 187,068 SF at 220 Hillsboro Technology Drive. One of the largest recent transactions was the sale of 1350 E. Newport Center Drive for $6.9M or approximately $111/SF. Stiles is slotted to deliver a 150,000 SF office building within the FAU Campus in 2021.
Boca Raton East’s most recent transaction was a headquarters for Hair Club for Men - a lateral move with Boca East. Hair Club for Men has over 120 employees at this location. There is 2.7M SF of office space in the Boca East corridor.
Boca Raton West has 2.45M SF of office space, and stretches from 441 through west if the I-95 corridor. Smaller office clusters run along Palmetto Park Road and Camino Real. Most of the occupier’s within this Central/West Boca area are healthcare and financial services groups. There is low vacancy in West Boca due to no new construction, average rents (not higher than average rents) and strong absorption are drivers for low vacancy. The largest sale of a building in West Boca was the sale of the two-building complex, Peninsula Executive Center, totaling 187,000 SF for $60M, $320/PSF.
Delray Beach is home to 1.9M SF of office space; 74 buildings of both Class “A” and Class “B” product. In 2018, Atlantic Crossing broke ground with an 84,000 SF mixed-use project that will house the new iPic headquarters and will be completed in 2019. The largest sale transaction was the 27,500 SF SunTrust building that sold for $18M.
West Broward is the one of South Florida’s tightest markets for Class A and Class B office product. The smaller spaces (<5,000 SF) are in the highest demand. We are seeing, often times, multiple occupiers will compete for the same space, proving Landlords the ability to hold strongly to asking rents and increase them each quarter.
There are a few major large blocks scheduled to be delivered over the next three years that should provide breathing room for occupiers. The 165,000-SF “The Edison” in Pembroke Pines is scheduled to be delivered Q2 2019.
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