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Market Report

Fort Lauderdale Office Market Report

2023 Investment Forecast

Slow Development and Strong Pre-Leasing Activity Will Limit
Upward Pressure on Vacancy in Broward County

Regionally affordable rents may attract new firms. Net absorption last year eclipsed 850,000 square feet for the first time since 2017, marking the third-largest annual total on record. Tenant demand is strong in the CBD, as many office-using firms are seeking high-quality floor plans in amenity-rich buildings, in an attempt to bring more employees back into the office. Suburban locales, such as Cypress Creek and Sawgrass Park, have also recorded elevated levels of leasing activity, with firms like Enhance Health and Moss Construction taking large blocks of sublease space off the market. Heading into this year, the metro’s central positioning in the region and relative affordability compared to neighboring markets could attract relocating or expanding firms looking to establish a presence in Southeast Florida. The mean asking rent in Fort Lauderdale is at least $6 per square foot less than in West Palm Beach and Miami-Dade. Supply pressure will also be minimal, as all of the 245,000 square feet scheduled to deliver this year has already been pre-leased. Although macroeconomic headwinds are expected to temper leasing activity nationwide, local vacancy will remain below the metro’s long-term average.
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