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20 1 7 S OUTHE A S T U.S. REAL ESTATE MARKET OUTLOOK

BROWARD COUNTY
Long-term growth to keep retail vibrant in
Broward, development activity to accelerate
The Broward County retail market is one of three parts of the Figure 1: Total Market Absorption and Deliveries
larger Miami metro retail market. The other two markets being Net Absorption (MSF)

Palm Beach County and Miami. Broward contains about one- 2.0
third of the retail product in the market. Like much of Florida, 1.5
the retail market is largely driven by the tourism industry.
1.0
However, strong residential growth is having a positive effect on
the retail market as well. 0.5

0.0
The economy in Broward County is making steady progress. The 2013 2014 2015 2016 2017 2018

market has an unemployment rate that is among the lowest in the Net Absorption Local Market Forecast
Deliveries EA Forecast
state, however this growth is largely concentrated in low-wage
industries like administration and leisure/hospitality, which have Source: CBRE Research, Q4 2016; CBRE Econometric Advisors (EA), Q4 2016.

accounted for more than half of the employment growth in the Figure 2: Asking Rates and Total Market Availability
last 12 months. Despite this, wages are growing in the face of a Asking Rate ($ PSF NNN) Availability Rate (%)
dwindling supply of labor. Low-cost, no-frills airlines have grown
22 10
in Broward County. This is good news for Broward County
21 9
because lower fares attract more vacationers and conventioneers
in support of the areas pivotal leisure and hospitality industry. 20 8

19 7
Continued positive job growth, and declining unemployment are
18 6
helping to fuel Broward Countys retail sector. About one million 2013 2014 2015 2016 2017 2018
sq. ft. of space was constructed during 2016. An additional 1.3 Asking Rate (L) Local Market Forecast
million is expected to be delivered in 2017. A national trend that Availability (R) EA Forecast
is evident in Broward is the preference towards mixed use Source: CBRE Research, Q4 2016; CBRE Econometric Advisors (EA), Q4 2016.

development. A notable example is Pembroke Pines City Center,

which will include 200,000 sq. ft. of retail space in Phase I
anchored by a Publix supermarket. The total project sits on a
17-acre site and will be constructed in two phases. Phase II will
include another 100,000 sq. ft. of retail occupied by theater and
restaurant tenants in addition to 385 apartments.
have become scarcer as investors are competing to acquire quality
assets in prime locations. As growth continues in the market, and
tourism sustains its rapid growth, expect the Broward County
retail market to outperform.

Strong long-term demographic trends bode well for the Broward

Count retail market. Much like the rest of the country, the most
attractive investment sites are well-positioned grocery anchored Abu Mansoor
centers. Broward County cap rates have steadily declined as sites Senior Research Analyst
+1 561 393 1607
abu.mansoor@cbre.com
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