Fort Lauderdale Office Market Report
Investors Show Confidence in Broward County’s
Office Sector, Despite a Challenged Lending Market
Recent performance has been bifurcated. The Downtown Fort Lauderdale and Sawgrass Park submarkets have exhibited strong performance over the past year. In recent quarters, firms like Reveneer, The Ritz-Carlton Yacht Collection, Shutts & Bowen, and Hinshaw & Culbertson committed to space in the CBD. Meanwhile, companies like Ford Motor Co., Enhance Health, and Landau & Associates either expanded or inked new deals in southwest Sunrise. Strong leasing activity helped slice local vacancy by more than 150 basis points in each of these submarkets over the past four quarters ending in March. However, while these areas have been standouts, the market as a whole has been dealing with headwinds that have impacted office fundamentals. Over the past two quarters, more office space overall has been relinquished than leased, as sublet availability is rising in areas like Southwest Broward and Cypress Creek. New space additions also contribute to higher vacancy, although the metro rate remains below the early 2021 peak of 16.6 percent.