freestanding office building for sale price: $899,000 · 2019. 9. 19. · property overview the...

Freestanding Office Building for Sale

Price: $899,000

2,173 SqFT Office BuildingLocated in Downtown Fort Lauderdale

11.68% ProForma Cap Rate

DOWNTOWN FT LAUDERDALE OFFICE BLDG320 DAVIE BOULEVARD • FORT LAUDERDALE, FL 33315

Phone: (954) 361-0000 ● Fax: (954) 361-0070 ● 4151 Hollywood Blvd ● Hollywood, FL 33020 ● www.DeMarcoGroup.com

John DeMarco, ACP, CCIM

[email protected]

The calculations and data presented are deemed to be accurate, but not guaranteed. They are intended for the purpose of illustrative projections and analysis. Theinformation provided is not intended to replace or serve as substitute for any legal, accounting, investment, real estate, tax or other professional advice, consultation orservice. The user of this software should consult with a professional in the respective legal, accounting, tax or other professional area before making any decisions.

TABLE OF CONTENTSProperty Summary 3

Property Description 4

Property Photos 5

Regional Map 7

Location Map 8

Maps and Aerials 9

Demographics 11

Pro Forma Summary 13

Comparable Sales 14

Comparable Leases 19

Market Overview 21

Commercial Financing 32

PROPERTY SUMMARY320 Davie Boulevard | Fort Lauderdale, FL 33315

The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.

Property SummaryAPN 5042 15 21 0060

Purchase Price $899,000

Price per Sq Ft $413.71 per Sq Ft

Building Class B

Building Size 2,173 Sq Ft

Lot Size 9,652 Sq. Ft.

Property Type Office

Year Built 1991

Pro-Forma NOI $105,000

Pro-Forma Cap Rate 11.68%

Property OverviewThe subject property is a freestanding office building consisting of2,173 square feet of usable space well situated on 9,652 square footlot. This building has a very professional build-out consisting ofseveral large executive offices, custom work stations, large executiveconference room, camera systems, custom furniture, and muchmore.

Location OverviewStrategically located in the heart of Downtown Fort Lauderdale,Florida. Less than a mile to Broward County Court House andfamous Las Olas Blvd. Only a mile away from Brightline new highspeed train service in Ft Lauderdale Station. Zoning allows a lawoffice and medical use.

P. 3

PROPERTY DESCRIPTION320 Davie Boulevard | Fort Lauderdale, FL 33315

The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.

John DeMarco with Re/Max 5 Star Realty is pleased to present the sale of 320 Davie Blvd, Fort Lauderdale Florida. Thesubject property is a freestanding office building consisting of 2,173 square feet of usable space well situated on 9,652square foot lot. This building has a very professional build-out consisting of several large executive offices, custom workstations, large executive conference room, camera systems, custom furniture, and much more. Perfect for any law firmor medical office use.

Located in the heart of Downtown Fort Lauderdale less than a mile to the Broward County Courthouse and one mile toworld famous Las Olas.

An investor can lease this property for $52 a square foot net ($105,000 per year) which would yield an investor an11.68% capitalization rate at the full asking price. See enclosed recent lease comparables confirming the averageleasing rates average $52 a square foot net. This property is being offered at only $437.18 price/sqft which is wellbelow recent sales, recent closed sales enclosed in this package show an average of $650 per square foot.

This is an excellent opportunity to invest in the booming South Florida real estate markets. All showings are byappointment only do not disturb existing business.

Please call John DeMarco for additional information and for a complete tour. Please remember to not disturbexisting business, all showings are by appointment only.

P. 4

PROPERTY PHOTOS320 Davie Boulevard | Fort Lauderdale, FL 33315

P. 5

PROPERTY PHOTOS320 Davie Boulevard | Fort Lauderdale, FL 33315

P. 6

REGIONAL MAP320 Davie Boulevard | Fort Lauderdale, FL 33315

P. 7

LOCATION MAP320 Davie Boulevard | Fort Lauderdale, FL 33315

P. 8

MAPS AND AERIALS320 Davie Boulevard | Fort Lauderdale, FL 33315

The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.

Subject Property

P. 9

MAPS AND AERIALS320 Davie Boulevard | Fort Lauderdale, FL 33315

The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.

Aerial Overview Map

P. 10

DEMOGRAPHICS320 Davie Boulevard | Fort Lauderdale, FL 33315

Population 1 Mile 3 Mile 5 Mile

Male 8,828 (55.43 %) 58,455 (52.55 %) 135,794 (51.03 %)

Female 7,097 (44.57 %) 52,776 (47.45 %) 130,301 (48.97 %)

Total Population 15,925 111,231 266,095

Race Demographics 1 Mile 3 Mile 5 Mile

Population Non Hispanic White 13,606 61,219 141,907

Population Black 1,752 45,385 110,339

Population Am In/Ak Nat N/A 24 71

Housing 1 Mile 3 Mile 5 Mile

Housing Units 9,494 60,386 134,988

Occupied Units 7,908 49,215 113,105

Owner Occupied Units 3,800 23,293 59,150

Renter Occupied Units 4,108 25,922 53,955

Vacant Units 1,586 11,171 21,883

P. 11

DEMOGRAPHICS320 Davie Boulevard | Fort Lauderdale, FL 33315

Household Income 1 Mile 3 Mile 5 Mile

Median Income $56,051 $48,648 $45,371

Less than $10,000 412 4,102 10,148

$10,000 -$14,999 334 2,949 6,602

$15,000 - $19,999 358 2,694 6,408

$20,000 -$24,999 392 2,607 6,443

$25,000 - $29,999 299 3,025 6,818

$30,000 - $34,999 409 2,923 6,796

$35,000 - $39,999 314 2,584 6,324

$40,000 - $44,999 299 2,513 6,066

$45,000 - $49,999 326 1,862 4,638

$50,000 - $59,999 793 3,739 8,675

$60,000 - $74,999 1,008 4,416 10,705

$75,000 - $99,999 635 4,883 11,018

$100,000 - $124,999 683 3,117 6,854

$125,000 - $149,999 279 1,845 3,876

$150,000 - $199,999 397 2,202 4,464

Greater than $200,000 786 2,863 5,392

Age Breakdown 1 Mile 3 Mile 5 Mile

Ages 0-4 424 (2.66 %) 5,153 (4.63 %) 13,200 (4.96 %)

Ages 5-9 561 (3.52 %) 6,396 (5.75 %) 16,342 (6.14 %)

Ages 10-14 501 (3.15 %) 5,844 (5.25 %) 15,137 (6.14 %)

Ages 15-19 451 (2.83 %) 5,630 (5.06 %) 14,676 (5.52 %)

Ages 20-24 504 (3.16 %) 5,895 (5.30 %) 15,133 (5.69 %)

Ages 25-29 660 (4.14 %) 6,207 (5.58 %) 15,445 (5.80 %)

Ages 30-34 915 (5.75 %) 6,538 (5.88 %) 15,749 (5.92 %)

Ages 35-39 1,139 (7.15 %) 7,158 (6.44 %) 16,714 (6.28 %)

Ages 40-44 1,367 (8.58 %) 8,042 (7.23 %) 18,506 (6.95 %)

Ages 45-49 1,503 (9.44 %) 8,887 (7.99 %) 20,344 (7.65 %)

Ages 50-54 1,499 (9.41 %) 8,926 (8.02 %) 20,371 (7.66 %)

Ages 55-59 1,431 (8.99 %) 8,435 (7.58 %) 19,202 (7.22 %)

Ages 60-64 1,238 (7.77 %) 7,385 (6.64 %) 16,846 (6.33 %)

Ages 65-69 1,034 (6.49 %) 6,152 (5.53 %) 14,092 (5.30 %)

Ages 70-74 836 (5.25 %) 4,804 (4.32 %) 11,109 (4.17 %)

Ages 75-79 633 (3.97 %) 3,482 (3.13 %) 8,194 (3.08 %)

Ages 80-84 435 (2.73 %) 2,278 (2.05 %) 5,478 (2.06 %)

Ages 85+ 794 (4.99 %) 4,019 (3.61 %) 9,557 (3.59 %)P. 12

PRO FORMA SUMMARY320 Davie Boulevard | Fort Lauderdale, FL 33315

TENANT ANNUAL SCHEDULED INCOME

Tenant Actual Market

Seller Occupied $0 $105,000

TOTALS $0 $105,000

ANNUALIZED INCOME

Description Actual Market

Gross Potential Rent $0 $105,000

- Less: Vacancy $0 $0

Effective Gross Income $0 $105,000

- Less: Expenses $0 $0

Net Operating Income $0 $105,000

ANNUALIZED EXPENSES

Description Actual Market

TOTAL EXPENSES $0 $0

EXPENSES PER RSF $0.00 $0.00

INVESTMENT SUMMARY

PRICE $899,000

Year Built 1991

Tenants 1

RSF 2,173

Price/RSF $413.71

Lot Size 9,652 sf

Floors 1

APN5042 15 21

0060

Market Cap Rate 11.68%

P. 13

1 1401 SW 1st Ave SOLDFort Lauderdale, FL 33315 Broward County

Ch Ss Fund-storsafe Ft LauderdRecorded Buyer: Recorded Seller: Bear Traxx Llc2051 NW 112th AveMiami, FL 33172

True Buyer: James B Houston LARRY MAURERTrue Seller:

Sale Date:

– Research Status:

PrFrma Cap Rate:

Sale Price:$621.57$1,700,000 - Full Value01/17/2019 Bldg Type:

Zoning:

Year Built/Age:GLA:

-

Parcel No:Financing:

50-42-15-10-1320-

Full Value

RetailGarden CenterBuilt 1935 Age: 842,735 SF

B-3, Fort LauderdaleLand Area: 0.61 AC (26,572 SF)

Price/SF:

4660282Comp ID:

2 107 NW 7th Ave - Downtown Contractor's Yard SOLDFort Lauderdale, FL 33311 Broward County

Sterling Construction IncRecorded Buyer: Recorded Seller: Landfall Holdings Llc107 NW 7th AveFort Lauderdale, FL 33311(954) 668-0245

Sale Date:


PrFrma Cap Rate:

Sale Price:$517.86$725,00008/27/2018 Bldg Type:

Zoning:

Year Built/Age:GLA:

-


50-42-10-20-0120-

Public Record

RetailFreestandingBuilt 1986 Renov 2005 Age: 321,400 SF

B3Land Area: 0.32 AC (13,939 SF)

Price/SF:

4511831Comp ID:

3 108 SE 8th Ave SOLDFort Lauderdale, FL 33301 Broward County

104 & 108 Se 8th Avenue LlcRecorded Buyer: Recorded Seller: Dettman Fleming Properties4828 Ashford Dunwoody RdAtlanta, GA 30338

21695 Marigot DrBoca Raton, FL 33428(954) 592-6612

Sale Date:


PrFrma Cap Rate:

Sale Price:$794.50$3,887,500 - Full Value04/25/2018 Bldg Type:

Zoning:

Year Built/Age:RBA:

-


50-42-11-07-0230, 50-42-11-07-0240-

Full Value

Class C OfficeBuilt 1974 Age: 444,893 SF

RAC-EMULand Area: 0.25 AC (10,890 SF)

Price/SF:

4238245Comp ID:

Copyrighted report licensed to RE/MAX 5 Star Realty - 746067. 7/26/2019

Page 1

4 311 SE 10th Ct SOLDFort Lauderdale, FL 33316 Broward County

Dunmore Properties, LLCRecorded Buyer: Recorded Seller: Four Just Us Inc1535 SE 17th StFort Lauderdale, FL 33316

311 10th CtFort Lauderdale, FL 33316(954) 723-0090

Sale Date:


PrFrma Cap Rate:

Sale Price:

Actual Cap Rate:

$700.00$1,750,000 - Confirmed02/21/2019 Bldg Type:

Zoning:Sale Conditions:

Year Built/Age:RBA:

--


50-42-15-01-0211-

Confirmed

Class C OfficeBuilt 1968 Age: 512,500 SF

ROABulk/Portfolio Sale, Redevelopment Project

Land Area: 0.19 AC (8,276 SF)Price/SF:

4682972Comp ID:

5 1508 E Las Olas Blvd SOLDFort Lauderdale, FL 33301 Broward County

1508 Los Olas, LLCRecorded Buyer: Recorded Seller: Centennial Bank300 Park StBirmingham, MI 48009

620 Chestnut StConway, AR 72032(501) 328-4663

Sale Date:


PrFrma Cap Rate:

Sale Price:$502.65$1,800,000 - Confirmed10/02/2017 (34 days on mkt) Bldg Type:

Zoning:

Year Built/Age:GLA:

-


50-42-11-01-2210Down payment of $540,000 (30.0%); $1,260,000 from Bank of America NA

Confirmed

RetailFreestandingBuilt 1959 Age: 583,581 SF

B-1Land Area: 0.17 AC (7,405 SF)

Price/SF:

4020032Comp ID:


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1401 SW 1st Ave1 Sold: $1,700,000 ($621.57/SF)FortLauderdale

2,735 SF General Retail/GardenCenter

107 NW 7th Ave2 Sold: $725,000 ($517.86/SF)FortLauderdale

1,400 SF GeneralRetail/Freestanding

108 SE 8th Ave3 Sold: $3,887,500 ($794.50/SF)FortLauderdale

4,893 SF Class C Office

311 SE 10th Ct4 Sold: $1,750,000 ($700/SF)FortLauderdale

2,500 SF Class C Office

1508 E Las Olas Blvd5 Sold: $1,800,000 ($502.65/SF)FortLauderdale

3,581 SF GeneralRetail/Freestanding

Address City Property Info Sale Info


Page 3

Dollar Volume

Legend:

Current SurveySold Transactions 5

$9,862,500Number of TransactionsTotal Dollar Volume

15,1091.54

Total Bldg Square FeetTotal Land in Acres

67,082$1,972,500

Total Land in SFAverage Price

3,022$652.76

Average Number of SFAverage Price Per Bldg SF

$621.570.31

Median Price Per SFAverage Number of Acres

13,416-

Average Number of SF(Land)Average Price Per Unit

--

Median Price Per UnitAverage Number of Units

-Actual Cap Rate

SoldTransactions

Time Interval - Quarterly

Report Time Frame: 10/1/2017 - 7/26/2019

Trend Report


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Trend Report

Sold Transaction Sold Transaction

4Q17 10/1-12/31/17 3Q18 07/1-9/30/18

Number of TransactionsTotal Dollar VolumeTotal Bldg Square FeetTotal Land in AcresTotal Land in SFAverage PriceAverage Number of SFAverage Price Per Bldg SFMedian Price Per SFAverage Number of AcresAverage Number of SF(Land)Average Price Per UnitMedian Price Per UnitAverage Number of UnitsActual Cap Rate

2Q18 04/1-6/30/18 1Q19 01/1-3/31/19

Sold TransactionSold Transaction

1$1,800,000

3,5810.17

7,405$1,800,000

3,581$502.65$502.65

0.177,405

----

1$3,887,500

4,8930.25

10,890$3,887,500

4,893$794.50$794.50

0.2510,890

----

1$725,000

1,4000.32

13,939$725,000

1,400$517.86$517.86

0.3213,939

----

2$3,450,000

5,2350.80

34,848$1,725,000

2,618$659.03$660.79

0.4017,424

----


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Lease Comps SummaryLease Comps Report

Deals

6Asking Rent Per SF

$36.55Starting Rent Per SF

$48.30Avg. Months On Market

5LEASE COMPARABLES

SUMMARY STATISTICS

Rent Deals Low Average Median High

Asking Rent Per SF

Starting Rent Per SF

Effective Rent Per SF

Asking Rent Discount

TI Allowance

Months Free Rent

4

2

1

2

-

1

$24.00

$30.00

$30.00

-1.7%

-

0

$36.55

$48.30

$30.00

-1.2%

-

0

$27.50

$45.50

$30.00

-0.8%

-

0

0.0%

-

0

$60.00

$61.00

$30.00

Lease Attributes Deals Low Average Median High

Months on Market

Deal Size

Lease Deal in Months

Floor Number

4

6

2

6

2

1,608

24.0

1

5

2,368

42.0

1

6

2,368

42.0

1 1

8

3,149

60.0

7/26/2019Copyrighted report licensed to RE/MAX 5 Star Realty - 746067.

Page 1

Lease Comps SummaryLease Comps Report

Property Name - Address Rating SF Leased Floor Sign Date Rent Rent Type

Lease

Type

Rents

-1 802-804 SE 17th St3,149 1st 6/3/2019 - -New

-2 1133 SE 4th Ave1,720 1st 2/27/2019 $30.00/mg EffectiveNew

-3 825 E Las Olas Blvd2,480 1st 12/27/2018 $61.00/nnn StartingNew

-4 535 NE 13th St3,000 1st 12/1/2018 - -New

-5 611 NE 13th St1,608 1st 10/8/2018 $25.00/nnn AskingNew

-6 1512 NE 4th Ave2,256 1st 9/17/2018 $24.00/nnn AskingNew

7/26/2019Copyrighted report licensed to RE/MAX 5 Star Realty - 746067.

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Fort Lauderdale Submarket SummaryFort Lauderdale Office

Vacancies are hovering at around 8.4% aftercompressing for most of the cycle. This submarket is oneof the largest in the Fort Lauderdale metro, butdevelopment has been almost non-existent over thepast few years. In fact, less than 50,000 SF hasdelivered since 2010, but a similar amount of space wasdemolished as well. Given that there are no major

projects in the pipeline, fundamentals remain stable inthe near term. Mirroring a metrowide trend, rent growthhas slowed but is still roughly double the historicalaverage. This submarket is less liquid than surroundingsubmarkets such as Downtown Fort Lauderdale andCypress Creek, but annual sales volume has surpassedthe historical average over the past four years.

NET ABSORPTION, NET DELIVERIES & VACANCY

Copyrighted report licensed to RE/MAX 5 Star Realty - 746067.

Fort Lauderdale Market SummaryFort Lauderdale Office

Office rents in the Fort Lauderdale metro increased by3.2% year-over-year as of 19Q2, and have posted anaverage annual gain of 5.2% over the past three years.Vacancies in the metro were well below the cycleaverage as of 19Q2, and, more or less, were unchangedover the past four quarters. There is 1,600,000 SFcurrently underway, representing a 2.3% expansion ofthe existing inventory. Over the past three years,776,000 SF has delivered, or a cumulative inventory

expansion of 1.1%. Sales activity was minimal over thepast four quarters, prolonging a multi-year stretch oflimited investment. Employment gains decelerated overthe past year but remained substantial, as totalemployment increased by 2.2%, or about 18,400 jobs.Over the past five years, employment has increased by2.7% annually on average, compared to a 1.8% averageincrease nationally.

NET ABSORPTION, NET DELIVERIES & VACANCY


Fort Lauderdale Economic SummaryFort Lauderdale Office

Broward County sits in the heart of the South Floridaregion. It has experienced favorable demographic andeconomic conditions over the past five years. Localeconomic, job, and demographic growth outpaced that ofthe U.S. across the board.

The County’s current population of 2,000,000 million hasgrown by close to 13% over the past decade, almostdouble the rate of the rest of the country. Most ofBroward’s population growth comes from internationalmigration. Domestic migration has slowed downsignificantly over the past five years. As the nationaleconomy continues to perform well, domestic migrationturned negative over the past couple of years.

Because of the reliance on international arrivals, BrowardCounty’s population growth is at risk if any shifts in thecurrent U.S. immigration policy occur.

Broward County’s 870,000 strong labor market is servicedriven, with close to 80% of the labor force employed inprivate service provision. Trade and transportation is byfar the largest sector, with 22% of the county’s jobs.Business services and healthcare and educationcomprise 20% and 15% of the labor force respectively.

The county’s labor market grew by close to a quarterover the past five years. The current unemployment ratefor Broward County is at 3.3%, close to a half a percentbelow that of the same time last year and very close tohistoric lows.

While Broward County’s labor market is performing verywell, its labor participation rate is near 45%, close to theU.S. average.

The region’s median household income currently standsat $60,000, slightly below the rest of the country. Incomegrowth in Broward County over the past economic cyclesurpassed that of the U.S. However, even if conditionscontinue to be favorable, the region’s household incomewill take another decade to catch up to that of the U.S.average.

Strong population growth drove Broward’s healthyhousehold formation numbers. Households grew by closeto 4.5% over the past five years. Growth registered 1%above the average for the country.

Broward County’s central geographic position in theSouth Florida region provides strategic benefits that arehelping its economy. The county is well positioned toattract companies that want to be in South Florida andbenefit from the region’s strong international links butdon’t necessarily want to pay the high costs of doingbusiness in Miami-Dade and Palm Beach counties.

The costs of doing business in Broward County are closeto the national average but are more than 10% lowerthan Miami’s. This makes Broward County a moreaffordable alternative that still presents many of theglobal-connection perks of occupying space in SouthFlorida.

Brightline, a fast train service that went into operation inmid-2018, has enhanced Broward County’s strategicposition. The train has for the first time connected SouthFlorida’s three central business districts and unified theregion’s labor market.

Both Downtown Fort Lauderdale and Central Broward,where the costs of doing business are even lower, havebegun to reap benefits. Central Broward is an area thatis positioned especially well to attract domestic employermigration going forward. In addition to lower cost ofdoing business, it has lower cost of living as well assignificantly more development potential due to landavailability.

The forecast calls for continued population growth forBroward County in the region of 1% per year over thenext couple of years. This is in line with historicalaverage population growth rates.

Broward County’s labor market is also forecast to growat just over 5% over the next five years. This issignificantly lower than the growth the marketexperienced over the past five years. The decline in jobgrowth does not necessarily spell bad economic news. Itis more a reflection of the current labor market tightconditions as well as an increasingly aging populationbase.

Fueled by population growth, household formation isforecasted to remain strong over the next five years andslightly exceed that of the prior five-year period.



FORT LAUDERDALE EMPLOYMENT BY INDUSTRY IN THOUSANDS

NAICS Industry Jobs LQ MarketUS USMarketUSMarket

Current Jobs Current Growth 10 Yr Historical 5 Yr Forecast

0.00%-0.36%0.86%0.78%1.38%1.53%0.428Manufacturing

0.48%0.79%1.15%1.86%0.87%1.13%1.2194Trade, Transportation and Utilities

0.38%0.61%0.85%1.78%-0.16%0.83%1.2113 Retail Trade

0.35%0.46%1.00%1.60%0.99%3.27%1.364Financial Activities

0.76%0.90%-0.02%0.31%0.44%-0.14%0.8103Government

0.25%0.92%2.10%2.27%3.12%-1.22%1.048Natural Resources, Mining and Construction

0.55%0.57%2.12%2.17%2.27%3.77%0.8115Education and Health Services

0.99%1.35%2.62%3.35%2.26%3.94%1.3159Professional and Business Services

0.56%0.70%0.01%1.55%-0.89%0.12%1.220Information

0.61%0.17%2.50%2.18%2.51%-1.99%1.095Leisure and Hospitality

0.29%1.05%0.99%2.52%1.30%4.09%1.240Other Services

Total Employment 867 1.0 1.62% 1.56% 1.97% 1.43% 0.77% 0.55%Source: Oxford Economics

LQ = Location Quotient

Source: Oxford Economics

YEAR OVER YEAR JOB GROWTH



DEMOGRAPHIC TRENDS

Current ChangeCurrent Level

Metro U.S.Metro U.S.Demographic Category

10-Year Change

Metro U.S. Metro U.S.

Forecast Change (5 Yrs)

Population 329,139,6881,964,847 0.8% 0.6% 1.3% 0.7% 0.9% 0.7%

Households 121,214,484694,466 0.6% 0.5% 0.6% 0.6% 0.8% 0.6%

Median Household Income $63,632$59,656 2.9% 3.3% 1.8% 2.2% 3.9% 4.4%

Labor Force 163,341,7661,042,665 0.4% 0.9% 0.6% 0.6% 0.7% 0.6%

Unemployment 3.6%3.1% -0.3% -0.3% -0.6% -0.6% - -


POPULATION GROWTH


LABOR FORCE GROWTH INCOME GROWTH


FORT LAUDERDALE VACANCY OVERVIEW

Strong leasing demand and little new office product havepushed vacancy rates close to historical lows that werelast recorded in this market in early 2000. New deliveriesover the past year totaled -74,000 SF, while absorptionreached 98,000 SF over the same period. The county’svacancy rate has hovered around 8.4% , reflecting thestable market conditions.

The spike in supply over the past year was due to thedemolition of American Express's former 400,000-SFservice center in Plantation in 18Q1. This madedemolitions, not completions, the biggest supply-relatednews in the Broward office market. Due to this, netdeliveries totaled 98,000 SF over the past year.

Even when adjusting for demolitions, new productdeliveries are low. This situation will continue over thenext year, as a number of projects currently underconstruction won’t begin to make any meaningfuldeliveries until late 2020.

Leasing activity remains very strong in the Browardmarket. It totaled 7.3 million SF over the past year to19Q1, marking a 5% increase from the prior year.Leasing volume for 2018 was the highest in the currentcycle. The record 2018 volume as well as the strongyear-over-year increase gave forward absorption a verypositive dynamic.

The strong leasing activity has been driven by a sharprise in office employment. The Broward market added7,500 new office employment jobs over the past year,marking a 3.2% increase, twice as fast as the averagefor the country.

The largest lease since the beginning of the year wassigned by Ultimate Software in April, taking up 100,000SF of space in Sawgrass Park. Ultimate Software is aWeston-based software developer focusing on humanresource management. Other notable leases includeAquila Software, a software development company thatmoved its headquarters to Pembroke Pines in SouthwestBroward and signed a 30,000-SF lease. Infiniti BehaviorHealth, a business behavioral healthcare company,signed a lease for 27,000 SF lease in CommercialBoulevard.

The last quarters of 2019 and 2020 will see deliveries ofhalf a million SF each, but leasing demand is alsoexpected to remain strong. The forecast is callingcontinued office using employment growth over the nextyear in the range of 2.4% . As a result, absorption is alsoforecast to continue to be strong, and given the limiteddeliveries, vacancy rates should remain stable aroundthe 8.1% mark.

FORT LAUDERDALE VACANCY OVERVIEW

Demand has slowed across the Fort LauderdaleSubmarket, but minimal supply has kept fundamentalsintact. There have been very few leases for more than10,000 SF over the past year, which has translated intomiddling demand. Some of the largest deals includeJetBlue (25,000 SF) and Nearpod (15,000 SF) in Dania.Both tenants took occupancy in early 2019.

Vacancies have remained around the historical averagesince 2017, and the near-term outlook appears similar.There are currently no major projects underway, butseveral are proposed and could break ground over the

next few years.

This submarket is the largest submarket in BrowardCounty and has one of the highest concentrations ofoffice-using employment in the metro. The FortLauderdale Submarket encompasses a diverseemployment base and has high concentrations in legalservices, healthcare, government, and business services.Some of the major employers in this submarket includeAuto Nation, Charles Schwab, Stiles Corp., Merrill Lynch,and Hotels.com.

Vacancy Analytics320 Davie Blvd


Vacancy Analytics320 Davie Blvd

MEDIAN MONTHS ON MARKET

MEDIAN MONTHS ON MARKET

Peers Fort Lauderdale Fort Lauderdale

2009 10.9 10.2 10.1

2010 8.0 12.4 13.6

2011 7.6 12.7 15.8

2012 12.2 16.8 16.6

2013 11.0 17.4 15.6

2014 10.0 19.7 18.7

2015 14.7 21.0 19.9

2016 15.2 15.2 14.8

2017 5.9 11.9 10.4

2018 3.5 9.0 8.4

2019 5.8 7.8 8.3


Rent Analytics320 Davie Blvd

FORT LAUDERDALE RENT TRENDS

Annual rent growth across the Broward office market hasbeen very healthy. At 1.5% it is above the national level.While it is close to that of neighboring Miami, rent growthfor Broward stands on much firmer ground as the supplypipeline is much tighter.

Higher-end properties are seeing rent rises upwards of6%, reflecting the tight supply conditions and the strongdemand fueled by gains in office employment. The tightconstruction pipeline over the past few years has furtherrestricted high-end product supply, giving landlords theupper hand in negotiating rental rates.

Rental rises are making Broward County more expensivefor new tenants considering the market. Currently, grossrents for higher-quality office product in Downtown FortLauderdale are close to $55/SF, while Miami’s CBD is at

$62/SF and West Palm Beach at $60/SF. Downtown FortLauderdale rents are currently rising at twice the speedwhen compared to those in Miami’s CBD. While thismight not be good news for the Downtown FortLauderdale area, it has been good news for Central andSouthern Broward submarkets, and this is reflected bythe strong leasing activity in those areas.

The forecast is calling for the overall Broward Countyrent growth to remain strong, close to the 3% mark, overthe next couple of years. Deliveries will continue to belimited, a factor that will support rent growth. Higher endproperties are likely to see some rent growth slowing, aslarge blocks of product deliver. This is especially true forDowntown Fort Lauderdale, where rent levels arecurrently the highest in Broward County.

FORT LAUDERDALE RENT TRENDS

Rent growth has slowed recently after hitting a cyclicalhigh at the end of 2018. But it is still roughly double thehistorical average. While this slowdown is prevalentacross all building cohorts, it has been most pronounced

within 3 Star inventory, which takes up about half of thesubmarket’s inventory. Space rated 4 Star has seen thestrongest growth over the past year.


Rent Analytics320 Davie Blvd

GROSS ASKING RENT PER SQUARE FOOT

GROSS ASKING RENT PER SQUARE FOOT

Direct Rent Trend (YOY) Market RentTrend (YOY) Trend (YOY)Market RentTrend (YOY)Market Rent

Subject Peers Fort Lauderdale Fort Lauderdale

2.7%$22.992.5%$20.38-0.7%$22.32--2013

4.1%$23.941.5%$20.68-4.6%$21.30--2014

4.5%$25.016.1%$21.942.7%$21.87--2015

6.6%$26.666.1%$23.2810.8%$24.24--2016

6.5%$28.393.9%$24.196.3%$25.77--2017

5.7%$30.027.3%$25.955.1%$27.08--2018

-$30.02-0.7%$25.781.1%$27.39--YTD

1.3%$30.390.8%$26.142.1%$27.652019

2.1%$31.052.4%$26.761%$27.932020

1.3%$31.451.4%$27.140%$27.922021 Forecast >

0.7%$31.660.8%$27.34-0.7%$27.732022

0.4%$31.780.4%$27.46-1%$27.472023


Absorption Analytics320 Davie Blvd

NET ABSORPTION IN PEERS IN SQUARE FEET

NET ABSORPTION IN FORT LAUDERDALE SUBMARKET IN SQUARE FEET

NET ABSORPTION IN FORT LAUDERDALE IN SQUARE FEET


Leasing Analytics320 Davie Blvd

LEASING ACTIVITY IN PEERS IN SQUARE FEET

LEASING ACTIVITY IN FORT LAUDERDALE SUBMARKET IN SQUARE FEET

LEASING ACTIVITY IN FORT LAUDERDALE IN SQUARE FEET


Commercial

Loan Financing

Loan Programs:1. 5/7/10 Year Fixed ARM'S2. 25 Year or less amortizations3. Fixed Loans4. Low Interest RatesProperty Types but not limited to:Industrial, Mixed use properties, Assisted Living Facilities, Warehouses, Health Care Facilities, Bars and Restaurants, Day care operations, Agricultural, Gas stations, Unanchored retail, Auto dealers.

Call today and see what program you qualify for!

David IannucciLoan Originator

NMLS# 1013040Office: 954.790.116

[email protected]/offices/5-star-professionals-hollywood

1901 Harrison St Suite 101

Hollywood FL 33020

freestanding office building for sale price: $899,000 · 2019. 9. 19. · property overview the...

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