Fort Lauderdale Industrial Market Report
2023 Investment Forecast
Slowing Development and Consistent Tenant Demand Promote
Further Vacancy Declines in Broward County
Large commitments signify strong space demand. Elevated import activity and a rapidly-growing economy are fueling industrial demand in Broward County. Last year, container volumes at Port Everglades reached the second-highest total on record. Additionally, robust population growth and lower business costs relative to other major East Coast markets have incentivized capital migration to the metro. These dynamics translated to tenants absorbing a net of more than 6 million square feet over the past two years, lowering vacancy to 4.2 percent, a rate more than 200 basis points below the long-term average. Industrial fundamentals are expected to remain tight during 2023, as users like Williams-Sonoma, Sonny’s Enterprises, Floor & Decor, and Armstrong Relocation & Companies recently committed to floor plans exceeding 100,000 square feet, paving the way for strong absorption. Development will simultaneously fall to a six-year low, limiting competition from new supply and promoting further vacancy compression.