FORT LAUDERDALE, FL-Pompano Beach is seeing plenty of leasing action lately, but it may only be good news on the surface. Scratch a little deeper and you discover that companies are downsizing, moving out of market, or selling their buildings at below replacement costs.
Brenner Real Estate Group has inked four leases totaling 19,000 square feet in the last 90 days in Pompano Beach. But Jeffrey Scott, a senior vice president at the firm, isn’t all smiles.
“There are so many buildings available for sale, more every single week,” Scott tells GlobeSt.com. “Big buildings. Companies are downsizing and relocating from older facilities to nicer buildings that they can get at rates less than what they were paying in their old buildings. There are just not that much really nice 6,000- or 7,000-square-foot dock-level top of the line space in Pompano Beach.”
Scott leased 6,461 square feet of showroom and warehouse space to a karate training center for five years and 6,160 square feet of office and warehouse space to a direct scrap metal importer. Both are in the Enterprise Commerce Center. He also leased 4,700 square feet of Powerline Road office space to a security systems company. His colleague, Suzanne Lopez, leased 1,800 square feet of office space at Square 1 to a law firm.
“Rents are probably where they were 10 or 12 years ago, but you don’t see too many 25,000-square-foot deals happening,” Scott says. “Top of the line buildings are listed at $100 or a little under $100 a foot--and it cost them more than that to build it. The problem is, companies leave 30,000 feet and they lease 10,000 or 12,000. And they are leaving the older buildings so it makes it harder to sell or lease them.”
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