Fort Lauderdale Retail Market Report

Retailers show confidence in the metro’s long-term demand drivers. Broward County’s retail sector is displaying growth across all key indicators. Net absorption surpassed 1.3 million square feet in both 2021 and 2022, with the average asking rent increasing by at least 8 percent per year during that span. This surge in leasing activity compressed vacancy to 4.2 percent entering 2023, a rate 20 basis points below the pre-pandemic level. Although national economic headwinds pose a threat to this momentum, local market conditions are expected to remain tight this year, as tenants are confident in the market’s long-term demand drivers. Fort Lauderdale has been successful in attracting companies, which will continue to drive in-migration to the area as jobs are created. Additionally, South Florida observed a resurgence in tourism during the past two years, while the cruise industry remained in recovery. Projections suggest passenger volumes will return to pre-health crisis levels in 2023, which may propel even more visitation to the region moving forward. New construction will also have a minimal impact on availability, as roughly 75 percent of the underway pipeline was pre-leased heading into this year.