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Market Report

Fort Lauderdale Industrial

Second Half 2019

Population Growth Pushes Against Modest Vacancy, Encouraging Rent Gains and Added Investment

Positive demographics and important trade linkages support low vacancy and rising rents. Global trade and the logistical needs of an expanding population are driving demand for industrial space in Fort Lauderdale. The market is home to Port Everglades, the largest port in Florida by cargo volume, where various facilities are required to help distribute products regionally via nearby interstates, railways and airports. Additional distribution centers and warehouses are needed to meet the consumption requirements of the growing number of local residents, up 14 percent over the past decade. These demand sources are supporting the delivery of nearly 3 million square feet of industrial space in 2019, the largest annual total so far this economic cycle. Multiple warehouses over 200,000 square feet in size have been recently completed or are near finalization in Coral Springs, Davie and Pembroke Pines. Many of the projects have yet to be leased, pushing vacancy up in certain areas. The marketwide rate will nevertheless not advance past 5.0 percent this year, 560 basis points below the 2009 high of 10.6 percent. Historically low availability is helping to lift marketed rents after the average asking rate remained about flat between 2016 and 2018.

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