Supply
Construction completions continued to push Broward County's vacancy rate higher, with more than 510,000 square feet (sf) delivered year-to-date (YTD). Vacancy finished Q3 at 5.7%, up 20 basis points (bps) quarter-over-quarter (QOQ) and 120 bps year-over-year (YOY). Despite climbing to its highest level since year-end 2020, vacancy remained below the national average of 6.8%, keeping Broward among the state's tightest markets. The rise can be attributed to the nearly 1.8 million sf delivered since the start of 2025, of which almost 76.0% remained unoccupied. North Broward recorded the largest annual vacancy increase, up 260 bps to 6.9%, following the Q3 completion of the final two buildings at Cocomar Business Park. The market's construction pipeline remained active, with nearly 760,000 sf under construction at quarter-end. The next major wave of supply is not slated to deliver until late 2027, aside from the two-building, 180,000-sf Logistics Center at 595, expected to complete by year-end. The gap should give Broward time to absorb the recent wave of new supply, which was expected to benefit leasing activity and occupancy totals.
Demand
While new leasing activity continued to contract, with YTD deal volume just under 1.6 million square feet (msf), Broward's market fundamentals remained strong. As leases signed during the pandemic-era leasing boom came due, renewal activity has increased, reaching almost 2.4 msf through three quarters and already surpassing the 10-year annual high recorded in 2020. Net occupancy gains were boosted by the recent construction wave, with a third consecutive quarter of positive net absorption bringing YTD gains to almost 387,000 sf. Ontic's full-building backfill in the Pembroke/Miramar/Weston submarket marked the quarter's largest occupancy, while Rexel USA and Solis Cabinets occupied a combined 101,000 sf at the recently completed Race Track Logistics Park.
Pricing
Overall average asking rents in Broward County decreased 2.0% QOQ but remained up 6.9% YOY, ending the quarter at $17.32 per square foot (psf). The dip reflected the lease-up of top-priced space from the recent construction wave, with only three of the county's nine submarkets recording YOY decreases, all in markets where new deliveries had since been leased. Pompano Beach led the county in annual rent growth, with asking rents up 18.7% YOY to $18.36 psf. In the near term, rents are expected to keep fluctuating, with the ongoing lease-up weighing on averages, while the coming construction lull and elevated renewal activity should provide support.
