Marcus & Millichap

Fort Lauderdale Retail Investment Forecast

Outlook 2019

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Broward County Construction Reaches Cyclical High; Investors Find Greater Options

Favorable demographic trends support Broward County retail market. Population growth in Fort Lauderdale, particularly from retirees that have discretionary income, is boosting retail sales. Net migration is forecast at nearly 450 people weekly, and 300 households are expected to form each week. In addition to retirees, the local employment market remains a driving force behind retail sales. The thriving healthcare field supported the creation of nearly 3,000 education and health services jobs last year, performance that should be repeated in 2019. Despite the favorable demand metrics, new supply will put upward pressure on marketwide vacancy. Construction will reach a cyclical high, surpassing last year’s pace by nearly 70 percent. Although pre-leasing is higher than the national average at 80 percent, existing properties will have to compete for retailers searching for space. Shopping centers in Coral Springs and Pompano Beach, where vacancy is nearly double the metro average, could see more modest rent gains.

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