2020 Industrial Market Report BROWARD Q2 2020

2019 KEY INDUSTRIAL DRIVERS

ECONOMICS Broward County continued to see solid job growth numbers through the end of 2019, expansion by existing tenants and attract new tenants to the market.

eCOMMERCE Expectations are high that additional sites will be taken down by eCommerce companies looking for “Last Touch” facilities close to end customers.

QUALITY Demand by tenants for larger bay options and efficient options provides incentives for new construction.

LAND Available land in Broward is scarce, but when it does come on the market, sales are closed in short order.

INVESTOR ACTIVITY in industrial product in Broward County reached an all-time high in 2019 with 80 buildings sold for over 8.6 msf, a 151.6% increase YOY. Warehouse/distribution product accounted for 83% of all sales or approximately 7.1 msf.”

DEMAND Tenants absorbed +/-414,000 SF in total throughout 2019.

CAP RATES Cap rates have increased slightly in 2019 from historic lows recorded in 2018 on significant increases in new construction.

4 | BROWARD COUNTY

INDUSTRIAL MARKET REPORT | 5