Fort Lauderdale Office Investment Forecast
Value-Seeking Investors Explore Fort Lauderdale;
Fundamentals Catching Up to Rest of Region
Broward County hardest hit among South Florida markets. At the end of 2019, all three metros in the region had vacancy rates ranging from the low-12 percent area to the high-13 percent range. The impact of the health crisis has since caused Fort Lauderdale employers to reexamine their space needs. This, combined with a nearly 3 percent stock increase over the past two years, has pushed availability well above Miami and West Palm Beach. On the supply side, relief is expected this year as deliveries slow and most buildings underway already have full leasing commitments. Office firms are also cementing long-term plans more frequently. Of the 10 largest leases signed in 2021, six were inked in the fourth quarter, including Envision Healthcare's sublease of nearly 100,000 square feet from Kaplan University. Among the traditional office-using sectors, the metro is 10,000 jobs below the pre-recession peak. As the pace of additions surpasses those in 2021, employers are expected to halve that deficit by year-end.