Commercial Real Estate Roundup
Broward County: Commercial real estate market
» In the office market, lease rates aren’t soaring, but concessions are abating.
» Developers and landlords also are looking east as development opportunities dwindle in the west, says Steve Hurwitz of Continental Real Estate Cos.
» Miramar in the suburbs still has high vacancies while Plantation and Sunrise, fed by I-75 and I-595, perform better. Miami-based Fifteen Capital Group paid $52 million for the Sawgrass Technology Park, a 12-building office, warehouse/flex project in Sunrise that benefited from its proximity to I-75 and I-595.
» Investor appetite can be keen. Atlanta-based Carroll Organization in June paid $225 million, a Florida apartment record, for The Resort at Pembroke Pines, a 1,520-unit rental development, says CBRE Vice Chairman Robert Given.
» The disposal of distressed real estate has made for a more fluid market as tenants no longer have to clear deals through lenders and can rely on new owners’ financial stability.
» In industrial, Broward is a tale of two markets. South of I-595 has benefited from Miami-Dade tenants seeking lower prices and thus has seen higher occupancies, such that developers are building. Chicago-based Bridge Development has bought 28.5 acres for $14 million to build 400,000 square feet of industrial. North of I-595, a market that depends more on home builders and related businesses, industrial has been slower to recover but Restoration Hardware in July signed a lease for 101,105 square feet at Atlanta-based Weeks Robinson’s distribution center under construction in Pompano Beach.
» Institutional buyers are circling every Class A industrial deal on the market just as in Miami-Dade County, says Jones Lang LaSalle Senior Vice President David Wigoda.
» Projected investment returns are being compressed.
The downtown and Las Olas office sector recently had its best quarter for absorption in years. Law firm Becker & Poliakoff took 46,000 square feet in Ivy Realty’s 1 East Broward Boulevard. Ivy purchased the building for $42 million as a half-empty distressed asset and has upgraded lobbies and other areas. CBRE handles the leasing. Meanwhile, BBX Capital, memorabilia and collectibles business Fanatics Mounted Memories and others are moving in from the suburbs to downtown, although Fanatics also just signed for 178,791 square feet of industrial warehouse space in Sunrise.
|Broward County - Commercial Market|
|Vacancy Rate||Avg. Asking Rent|
|Sector||Quarter 2 2012||Quarter 2 2013||Quarter 2 2012||Quarter 2 2013|
|Source: Jones Lang LaSalle|