Figures
Broward Indsutrial Figures - Q3 2024
October 9, 2024 5 Minute Read
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- Like many major U.S. markets, net absorption in Broward has slowed significantly compared to the robust demand seen during the post-pandemic boom. The trailing 12-month net absorption now stands at -185,000 sq. ft. However, a few large upcoming move-ins are expected to boost absorption, potentially allowing the market to finish the year on a positive note.
- Yet, with minimal speculative construction underway, vacancy rates could peak at a lower mark than other peer markets. This would allow the market to tighten if a soft economic landing is achieved and tenants return to growth mode.
- •Annual rent growth has slowed to 6.1% as of the third quarter of 2024, well below the pandemic peak of 18.5%. As tenant demand wavers, rent growth will likely slow further through 2024. Given a lighter construction pipeline, Broward carries minimal risk of asking rental rates suffering sharp and sustained losses over the next 18 to 24 months.