The market experienced strong leasing of more than 1.1 million sf in the third quarter, according to the report. This figure makes the year-to-date leasing total nearly 3.8 million sf, which is up from almost 3.4 million sf for the same period last year. Among the major leases that quarter was Air Spares America's 56,320-sf warehouse/distribution lease in the Deerfield Beach submarket. Also, Trane leased 52,081 sf of warehouse/distribution space in Pompano Beach.
Industrial sales also had a decent quarter, with sales reaching nearly 1.2 million sf in the third quarter and close to 3.5 million sf year-to-date. The biggest sale of the quarter was the 276,000-sf warehouse distribution building located at 5701 N.W. 94th Ave. in Tamarac. Gray Capital LLC was the buyer; the building sold for about $6.5 million.
Despite the positive signs, the overall vacancy rate in the county rose from 9.2% after the second quarter to 9.5% third quarter. The increase is partly attributed to new space delivered in the third quarter.
Another sign that the uncertain economy is having some effect on the local industrial market is the overall absorption rate of just 19,864 sf for the most recent quarter. The second quarter saw positive overall absorption of 549,568 sf. The year-to-date overall absorption also is down, compared with the comparable period last year. This year's figure was 496,713 sf; last year's was approaching 1.5 million sf.
Also according to the report, asking net rental rates showed little change since the second quarter. The rate for warehouse space grew some to $5.75 per sf. The highest average direct asking net rental rate in the third quarter was seen in the North Broward submarket, with a rate of $5.91 per sf. This is partly attributed to new speculative warehouse/distribution space.
The Southwest Broward submarket continues to have trouble with its vacancy rate, with the highest in the county at 16.2%, up 1.9% since last quarter, partly due to a downturn in the Miami-Dade County market, the report states.
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