Writer: Esteban Pagés
2 min read February 2023 — Although the data points toward a stabilization of the industrial space frenzy witnessed throughout 2020 and 2021, Broward County’s industrial market closed 2022 with a net absorption of 213,058 square feet in 4Q22, according to CBRE’s latest industrial market report. With this performance, Broward registered 11 consecutive quarters with positive net absorption of its industrial real estate.
Demand for industrial space remains strong in Broward County, with nearly 1.43 million square feet delivered in 4Q22 alone, and a pipeline of 1 million square feet under construction. For 2022 as a whole, Broward County can boast 1.9 million square feet in net absorptions, stable vacancy rates at 2.9% and 10% year-over-year hike on its rents, reaching $14.15 per square foot.
Broward County’s industrial market was able to navigate investor uncertainty stemming from changes in global supply chain logistics and inflation with strong demand from a diverse pool of tenants, CBRE said. The South Florida Business Journal highlighted the lease deals worth noting for 4Q22:
| Company | Space | Location |
| Imperial Dade | 506,215 sq. ft. | Countyline Corporate Park, Building 38, 3761 W. 112th Place, Northwest Miami-Dade |
| All Glass Production | 226,698 sq. ft. | Beacon Logistics Park, Building C, 4120 W. 91st Place, Northwest Miami-Dade |
| Logistics Plus | 181,051 sq. ft. | Miami Midway Park, Building 3, 9575 N.W. 174th St., Northwest Dade |
| Miami Dade County | 147,581 sq. ft. | International Corporate Park, Building 18, 1530 N.W. 98th Ct., Central Miami-Dade |
| Flowers Foods | 113,113 sq. ft. | Beacon Logistics Park, Building A, 9221 W. 44th Ave., Northwest Miami-Dade |
On the flip side, Avison Young’s Fort Lauderdale Industrial Insights for 4Q22 reported a significant decline in industrial job postings across Broward County. Following a mid-2021 peak, transportation and material mover occupations dropped 32.3% year-over-year between 4Q21 and 4Q22. Production occupations signaled a similar decline, with a 28.1% year-over-year drop. Such a performance is a leading indicator of weakening demand, according to the global commercial real estate services firm.
JLL’s Industrial Insight for Broward County last quarter warned that Broward’s absorption performance was negative from a quarter-over-quarter perspective, rooted primarily from large sublease space availabilities aligning with new product deliveries. Although absorption remained assertively positive for 2022, quarterly negative absorption may indicate early signs of a market slowdown to be monitored for 1Q23. From an outlook standpoint, JLL does highlight Broward County as “South Florida’s next big bet for industrial development.” According to the report “Land plays are primed with opportunity as demand for space continues. Class A product remains the most desirable product for institutional users, while Broward remains land constrained, further validating the need for continued development.”
For more information, please visit:
https://www.us.jll.com/
https://www.cbre.com/
https://www.avisonyoung.us/
