Metro United States

Industrial Research
6%

Year-over-Year Change
3%

0%

Market Report -3%

Second Half 2018
-6%
Fort Lauderdale Metro Area 08 09 10 11 12 13 14 15 16 17 18*

A Surge in Construction Nudges Vacancy Higher; Industrial Supply and Demand

Yield Potential Keeps Investors Active in Market Completions Absorption Vacancy
3.0 16%

Square Feet (millions)

Deliveries reach a cyclical peak in 2018 and even more are on the way. Robust
1.5 12%

Vacancy Rate
activity at Port Everglades and the growing e-commerce sector are generating a need
for warehouse and distribution space throughout Broward County. Freight, storage, 0 8%
transportation and e-commerce companies are among the firms searching for space.
Roughly 1.5 million square feet of new inventory came online during the past four quar- -1.5 4%
ters, more than double the prior period’s completions, and the pipeline is expanding.
Atlantahas
The Southwest Broward portion of the county Office:
received the largest portion of the Columbus
-3.0 Office: 0%
08 09 10 11 12 13 14 15 16 17 18*
recently built space, including some speculative projects that have pushed vacancy in
Michael Fasanomoderate,
First Vice President/Regional Manager Michael Glass First Vice President/District Manager
the submarket into double digits in June. 1100
The Abernathy
rate should however, with large
Road N.E., Bldg. 500, Suite 600 5005 Rockside Road, Suite 1100
leases signed in the third quarter. Marketwide, new
Atlanta, GA speculative space contributed to
30328 Independence, OH 44131
Asking Rent Trends
(216) 264-2000 | michael.glass@marcusmillichap.com
vacancy rising 100 basis points year over(678)
year808-2700
in the second quarter, while asking rents
| michael.fasano@marcusmillichap.com
Metro United States
dipped 2.4 percent to $8.53 per square foot. Rent remains more affordable than nearby
12%
Miami-Dade, attracting many cost-conscious tenants.
Austin Office:

Year-over-Year Change
Dallas
6%
Office:
Craig Swanson
Bright economic outlook and yield potential keeps investors searching. Broward
Vice President/Regional Manager
County’s strong economy and favorable 9600 North Mopac
demographic Expressway,
trends, Suitepopulation
including 300 and Tim Speck First Vice President/District Manager
0%
Austin, TX 78759 5001 Spring Valley Road, Suite 100W
income growth, support a growing industrial sector. In addition, lower entry costs
(512) 338-7800 | craig.swanson@marcusmillichap.com
and Dallas, TX 75244
the highest yields among the three major South Florida markets are luring buyers. A -6%
(972) 755-5200 | tim.speck@marcusmillichap.com
lack of quality properties being marketed,Baltimore Office: in a slight dip in transaction
however, resulted
activity year over year in June. Increased competition for the available assets helped -12%
Fort Worth Office:
push the average price up 11 percent to100
Matthew
nearly
Drane Regional Manager
$133 per square foot during this time,
08 09 10 11 12 13 14 15 16 17 18*
E. Pratt St., Suite 2114 Kyle Palmer Vice President/Regional Manager
while the average cap rate contracted 50 Baltimore,
basis points resting in the mid-6 percent span.
MD 21202 300 Throckmorton Street, Suite 1500
Warehouse facilities in Fort Lauderdale and Pompano
Tel: (443) 703-5000 Beach were most often sought
| bryn.merrey@marcusmillichap.com Sales Trends
(817) 932-6100 | kyle.palmer@marcusmillichap.com
Boston Office:
after. These assets transacted at an average of $114 per square foot. Sales Price Growth
Denver Office:
Tim Thompson Regional Manager
Average Price per Unit (000s)

$160 28%
100 High Street, Suite 1025 Robert Kaplan Vice President/Regional Manager

Year-over-Year Growth
Boston, MA 02110 1225
$12017th Street, Suite 1800 14%
(617) 896-7200 | tim.thompson@marcusmillichap.com Denver, CO 80202
2018 Market Forecast Charleston Office: (303) 328-2000 | robert.kaplan@marcusmillichap.com
$80 0%
Employment After 12,400 workers were added to payrolls in 2017, 18,000
up 2.1% Benjamin
jobs will be created in 2018,Yelm
a 2.1 Regional
percentManager
increase. Detroit
$40 Office: -14%
151 Meeting Street, Suite 450
Charleston, SC 29401 Steven Chaben Senior Vice President/Regional Manager
Construction Completions rise(843)
to the highest| benjamin.yelm@marcusmillichap.com
952-2222 level in more than 10 years, well $0 -28%
Two Towne Square, Suite 450
08 09 10 11 12 13 14 15 16 17 18**
1.9 million sq. ft. above last year’s 415,700 square feet. Pompano Beach will re- Southfield, MI 48076
Charlotte Office: (248) 415-2600 | steven.chaben@marcusmillichap.com
ceive the largest portion of this year’s deliveries. * Forecast
Benjamin Yelm Regional Manager Sources: Marcus & Millichap Research Services;
Bureau of Labor Statistics; CoStar Group, Inc.; Real Capital Analytics
Vacancy 201 South
Net absorption does Tryon pace
not keep Street, with
Suite the
1220surge in deliveries
up 160 bps raising vacancy Charlotte,
160 basis NC 28202
points to 4.7 percent at year end, Fort Lauderdale Office:
(704) 831-4600 | benjamin.yelm@marcusmillichap.com
erasing the 140-basis-point drop registered last year.
Ryan Nee Vice President/Regional Manager
5900 N. Andrews Avenue, Suite 100
Rent Higher-quality space on the
Chicago market
Area will push rent up 1.6 per-
Offices: Ft. Lauderdale, FL 33309
up 1.6% cent to $8.86 per square foot after a 2.0 percent gain last year. (954) 245-3400 | ryan.nee@marcusmillichap.com
Richard Matricaria Senior Vice President/Division Manager
333 West Wacker Drive, Suite 200, Chicago, IL 60606
Investment Throughout Florida, commercial
(312) 327-5400 real estate property taxes
| richard.matricaria@marcusmillichap.com For information on national industrial trends, contact:
could rise in the years ahead if the non-homestead exemption Houston
John Office
Chang :
Senior Vice President | Research Services
cap is repealed inDavid Bradley Regional Manager | Chicago Downtown
November. Tel: (602) 707-9700 | john.chang@marcusmillichap.com
Ford Noe Regional Manager
333 West Wacker Drive, Suite 200, Chicago, IL 60606 Three Riverway, Suite 800
(312)
Metro-level employment, vacancy and asking rents are year-end 327-5479
figures | david.bradley@marcusmillichap.com
and are based on the most up-to-date information available. Asking rent is based on
Houston, TXthe77056
full service marketed rental rate. Average prices and cap
rates are a function of the age, class and geographic area of the properties trading and therefore may not be representative of the market as a whole. Sales data includes transactions valued at $1,000,000 and greater
unless otherwise noted. Forecasts for employment and office data are made during the fourth quarter and represent estimates of future performance. (713)No
452-4200 | ford.noe@marcusmillichap.com
representation, warranty or guarantee, express or implied may be
made as to the accuracy or reliability of the information contained herein. This is not intended to be a forecast of future events and this is not a guaranty regarding a future event. This is not intended to provide specific
Steven Weinstock
investment advice and should not be considered as investment advice. First Vice President/Regional Manager
One Mid America Plaza Suite 200
© Marcus & Millichap 2018 | www.marcusmillichap.com
Oakbrook Terrace, IL 60181
(630) 570-2250 | steven.weinstock@marcusmillichap.com
Indianapolis Office:
Josh Caruana Vice President/Regional Manager