Fort Lauderdale Office Market Report
Class B/C Recovery Accelerates While Class A Lags Behind, Beleaguered by New Supply
Low-tier and mid-tier fundamentals exhibit improvement. More Class B/C space was leased than relinquished in the April through June period of this year, which had not occurred in any of the previous six quarters. Stronger demand pushed Class B/C vacancy down 70 basis points in the second quarter, notching a rate of 12.5 percent, just 60 basis points above the pre-recession level. The segment’s average asking rent also climbed 1.1 percent during that three-month stretch. Class B/C absorption was the highest in Cypress Creek and Plantation during the first half of 2021. Both of these submarkets have asking rents that trail the market average, luring tenants seeking lower-cost space. Recent lease signings in these two areas include commitments by accounting, insurance and healthcare industry tenants.