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Market Report

Fort Lauderdale Office Market Report

2Q 2021

Firms Favoring Specific Locales When Leasing;
Large Projects Escalate Supply Pressure

Downtown and near-airport offices generating leasing activity. Dating back to July 2020, more than three-fourths of leases signed or renewed for spaces larger than 10,000 square feet were split between two submarkets. The Central Business District and the Cypress Creek area, which encompasses Fort Lauderdale Executive Airport, have attracted the majority of firms seeking space in the metro. Despite parallel demand tailwinds, performance metrics in these two corridors have contrasted each other. In Cypress Creek, no space was added over the past 12 months while net absorption was positive 119,000 square feet, dropping vacancy 150 basis points. Conversely, downtown added more than 385,000 square feet as net absorption totaled 28,000 square feet, producing a 350-basis-point vacancy rise. Nevertheless, rent growth in the core was stronger, boosted by Class A space returning to the market.
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