MARKETVIEW

Broward County Retail, Q1 2016

Broward Countys retail vacancy

continues its downward trend
Lease Rate

Direct Vacancy

5.3%

$20.59 PSF

Net Absorption

44,000 SF

Under Construction

469,000 SF

*Arrows indicate year-over-year change.

Figure 1: Total Vacancy vs Average Direct Asking Lease Rate (NNN)

Vacancy (%)

Broward Vacancy Rate

Broward Avg Asking Lease Rate

Asking Rate ($/SF)

24

16

0
Q4 2011

Q4 2012

Q4 2013

Q4 2014

Q4 2015

Q1 2016

Source: CBRE Research, Q1 2016.

Broward County retail vacancy rates decreased 80

The largest multi-tenant construction effort

basis points (bps) year-over-year from 6.1% in Q1

underway is the Millenium Mall Redevelopment in

2015, down to 5.3% at the close of the quarter.

Hollywood, a 40 acre site scheduled to be delivered in

Average direct asking rates increased slightly

Q3 2016 that will feature many national retailers and

finishing the quarter at $20.59, an increase of 4.4%

restaurant chains.

from one year ago. Two of the largest lease deals

affecting Q1 2016 absorption include: a 42,000 sq. ft.

Positive job growth, a vibrant tourism market and

lease for Luckys Supermarket in Coral Springs, and a

increased consumer spending are helping to drive

14,000 sq. ft. lease for Emanuel Church in Pembroke

Broward Countys retail sector. In 2015, the county

Pines.

attracted 15.4 million visitors who spent $14.2

billion. According to the Greater Fort Lauderdale

Five new buildings were delivered during the quarter

Convention and Visitors Bureau, Broward County led

totaling 38,919 sq. ft. The construction pipeline

the state in hotel occupancy in both January and

consists mostly of single-tenant spaces near major

February 2016 at 81.4% and 87.2% respectively.

employment and residential hubs.

Q1 2016 CBRE Research

2016 CBRE, Inc. |

M A R K E T V I E W BROWARD COUNTY RETAIL

Figure 2: Broward Market Statistics

Submarket

Total
Inventory
(SF)

Commercial Blvd
Cypress Creek
Downtown Fort Lauderdale
Fort Lauderdale
Hallandale
Hollywood
NW Broward/Coral Springs
Outlying Broward County
Plantation
Pompano Beach
Sawgrass Park
Southwest Broward
Broward County Market
Community Center
Freestanding
Mixed-Use
Power Center
Regional & Super Regional Center
Neighborhood & Strip Center

1,581,842
2,655,482
4,483,708
17,032,451
4,228,028
10,798,597
13,420,474
455,892
11,638,052
15,758,497
4,571,172
14,964,884
101,589,079
15,165,369
35,557,646
5,207,516
5,651,866
7,329,226
33,019,522

Direct
Vacancy
(%)

Total
Vacancy
(%)

3.5
6.9
8.7
5.3
5.7
5.4
5.0
4.3
7.3
5.0
3.0
3.7
5.3
5.3
5.9
7.7
3.2
9.1
8.2

3.5
6.9
8.9
5.3
5.8
5.4
5.2
4.3
7.3
5.4
3.0
3.8
5.4
5.4
6.1
7.8
3.7
9.1
8.3

Q1 2016 Net
Absorption
(SF)

YTD Net
Absorption
(SF)

7,187
(8,161)
(14,503)
(49,985)
25,578
(6,426)
66,268
(1,898)
12,046
(17,542)
19,994
11,440
43,998
64,960
21,314
(21,122)
(5,447)
8,797
11,262

7,187
(8,161)
(14,503)
(49,985)
25,578
(6,426)
66,268
(1,898)
12,046
(17,542)
19,994
11,440
43,998
64,960
21,314
(21,122)
(5,447)
8,797
11,262

Under
Construction
(SF)

5,000
23,526
149,328
300,000

10,351
76,753
564,958
388,479
80,556

Avg. Asking
Lease Rate
($/SF/NNN)

15.31
15.98
29.44
18.93
20.14
19.81
17.65
19.83
18.29
18.75
27.26
24.47
20.13
20.84
19.55
21.11
19.41
13.53
19.60

Source: CBRE Research, Q1 2016.

Figure 3: Significant Broward Q1 2016 Leases Impacting Absorption
Submarket

Property

Tenant

Transaction (SF)

NW Broward

9100 Wiles Road

Luckys Supermarket

42,000

SW Broward

7020-7040 Pines Boulevard

Emanuel Church

14,000

SW Broward

1110-1392 Weston Road

Pet Supermarket

7,980

Pompano Beach

3660-4060 W. Hillsboro Boulevard

China Buffet

7,532

Source: CBRE Research, Q1 2016.

Figure 4: Significant Broward Q1 2016 Sale Transactions
Submarket

Property

Buyer

Seller

Building (SF)

Sale Price ($)

SW Broward

Palm Lakes Plaza

Publix Supermarkets

Stockbridge Capital Group, LLC

109,752

28,150,000

Hallandale

CVS

Classic Sanitation

Suntrust Equity Funding LLC

15,034

16,020,000

Sawgrass Park

The Fresh Market

Allegra Tribeca Inc.

Pointe Development Co.

24,826

15,300,000

Fort Lauderdale

Atlantic Square Plaza

Jose Llorens

Estate of John N. Rhodis

72,523

13,100,000

Source: CBRE Research, Q1 2016.

Q1 2016 CBRE Research

2016 CBRE, Inc. |

M A R K E T V I E W BROWARD COUNTY RETAIL

Market Coverage: Includes all competitive retail buildings 2,500 sq. ft. and greater in size in Broward County.
CONTACTS

Jennifer Lyons
Researcher
+1 954 331 1772
jennifer.lyons@cbre.com

To learn more about CBRE Research, or to access

additional research reports, please visit the
Global Research Gateway at
www.cbre.com/researchgateway.

Shanna Naseery
Researcher
+1 954 331 1702
shanna.naseery@cbre.com

CBRE Fort Lauderdale

200 E. Las Olas Boulevard
Suite 1620
Ft. Lauderdale, FL 33301
+1 954 462 5655

Mary Jo Eaton
President, Florida and Latin America

+1 305 428 6329

Maryjo.eaton@cbre.com
Quinn Eddins
Director, Research and Analysis
+1 305 428 6325
quinn.eddins@cbre.com
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