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Spring 2021 DowntownFTL Commercial Real Estate Report

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Spring 2021 DowntownFTL Commercial Real Estate Report

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DowntownFTL is a vibrant metropolitan city that is evolving at the center of the South Florida region where all are inspired to live like locals Start here Stay here Grow here

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Table of Contents 05 DowntownFTL At a Glance 06 Why Fort Lauderdale 08 Office Market Indicators 16 Retail Market Indicators 22 Hotel Trends to Watch 26 Cycle Outlook The DowntownFTL Spring 2021 Commercial Real Estate Report was compiled in the first quarter of 2021 The Report is based upon data collected on the 2019 2020 commercial real estate market with data points presented on Q1 2021 where available to reflect the current status of the market

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SUN RIS EB OU LEV DA VIE BO UL RD BO ULE AV WA VA RD N BRO EN UE OF A RT S ARD EVA RD SW 4 17 TH ST RE ET

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DowntownFTL Urban Core At a glance 2 2 SQUARE MILES 18 900 TOTAL POPULATION E LA 61 000 SO LAS BO ULE TOTAL EMPLOYEES VAR D 5 350 TOTAL BUSINESSES The DDA taxing district is highlighted in yellow although the agency advocates for the Greater Downtown core stretching from Sunrise Boulevard to the north SE 17th Street to the south 7th 4th Avenue to the west and US1 to the east including the East Las Olas area 5

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Why Fort Lauderdale Lifestyle AAA Bond Rating High quality of life for a walk life balance with plenty of outdoor activities to enjoy average year round temperatures of 72 and 250 days of sunshine each year Standard Poor s boosted the City s rating from AA to AAA in 2020 Connectivity Proximate to the Interstate 95 three international airports Port Everglades Tri Rail station and Brightline high speed passenger rail Business Friendly Government The City of Fort Lauderdale embraces public private partnerships for major projects as evidenced by the completion of a new Major League Soccer stadium and approval for the Florida Panthers to renovate War Memorial Auditorium into a world class sports and entertainment venue Educated Growing Talent Pool A large and diverse labor force along with a growing talent pool and excellent higher education pipeline 6 A Start Up Mecca The Miami Fort Lauderdale area recently ranked 1 in startup activity in the nation by The Kauffman Foundation and in 2020 attracted some of the most high profile founders and investors such as SoftBank and the Founders Fund A Magnet for Talent Migration Miami Ft Lauderdale gained the most workers in the last 12 months from New York City NY Wichita KS and Tallahassee FL For every 10 000 LinkedIn members in Miami Ft Lauderdale 9 97 workers moved to the city in the last year from New York City NY Yachting Capital of the World More than 300 miles of inland waterways and 50 000 registered yachts and home to one of the busiest cruise ports and the largest boat show in the world

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Affordable Luxury Real Estate Downtown Fort Lauderdale 47 60 Chicago 47 90 Downtown Miami 55 00 Washington DC 60 90 San Francisco Bay 66 20 Boston 72 00 NYC Metro 80 20 At the Heart of South Florida s Rising Tech Ecosystem Home to Magic Leap Ultimate Software now Ultimate Kronos Group and pet e commerce giant Chewy Growing Industry Sectors Aviation A soaring industry with more then 46 000 workers in South Florida Life Sciences An ideal ecosyatem for life science companies seeking a location close to universities and research facilities Healthcare High quality medical health and wellness facilities 7

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Office Market Indicators Year End 2020 DOWNTOWN WEST PALM BEACH 3 6 Million SF total inventory 670 000 SF under construction Vacancy Rate 16 8 13 5 2020 47 47 PSF gross rental rate 52 5 Year Growth 49 83 PSF gross rental rate class A 31 5 Year Growth 2019 0 SF new deliveries DOWNTOWN FORT LAUDERDALE 7 6 Million SF total inventory under construction Vacancy Rate 18 9 12 4 West Palm Beach gross rental rate 40 5 Year Growth 0 SF 2020 46 57 PSF 47 59 PSF gross rental rate class A 30 5 Year Growth 2019 486 000 SF new deliveries Fort Lauderdale DOWNTOWN MIAMI Miami 22 4 Million SF total inventory 1 5 Million SF under construction Vacancy Rate 14 4 14 2 2020 0 SF 8 2019 new deliveries 49 26 PSF gross rental rate 29 5 Year Growth 55 07 PSF class A gross rental rate 25 5 Year Growth

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Headquarters Regional Offices Major Firms WHO S HE R E New Leases 2019 2020 Continued commitment to FTL Lease Renewals 2019 2020 9

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One Financial Plaza 100 SE 3rd Avenue 117 000 000 282 883 Square Feet Buyer Alliance Partners HSP Seller Walton Street Capital Courthouse Place 12 SE 17th Street 18 200 000 66 300 Square Feet Buyer Netz Group Ltd Seller Sefira Capital Highline Real Estate Capital 501 South Andrews Avenue Sold for redevelopment potential 16 250 000 65 643 Square Feet Buyer Steven A Landy Seller Ocita Properties Top 3 Sales Transactions 2019 2020 10

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DowntownFTL Historical Office Market Vacancy Rates 25 0 Following the Great Recession office vacancy rates peaked at 18 5 in 2011 returning to a low of 9 9 in 2016 At the end of 2020 vacancy rates climbed to 18 9 as a result of the pandemic and the delivery of the first Class A office building in DowntownFTL in the past decade The Main 20 0 15 0 10 0 5 0 0 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 Class ABC 2015 2016 2017 2018 2019 2020 Q1 2021 Class A Gross Office Rents 60 00 50 00 Meanwhile gross rental rates continued on an upward path to 46 56 per square foot at the end of 2020 a 10 year overyear increase 40 00 30 00 20 00 10 00 0 00 2006 2007 2008 2009 2010 2011 2012 2013 Class ABC Office Transactions Investors sat on the sidelines in 2020 however the worst of the declines in deal activity are in the rearview mirror as price discovery and buyer interest strengthens Low interest rates limited high quality supply high demand and capital availability bode well for more deal activity in 2021 2014 2015 2016 2017 2018 2019 2020 Q1 2021 Class A 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 0 100 000 000 200 000 000 300 000 000 400 000 000 500 000 000 600 000 000 11

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DowntownFTL Office Skyline 30 8 615 29 5 443 28 27 26 25 24 23 1 991 22 21 4 481 20 11 068 19 21 471 18 8 674 7 115 17 2 712 16 23 381 15 4 398 14 3 280 13 801 17 339 2 270 21 471 9 525 13 12 4 621 1 703 11 3 705 10 9 4 626 2 669 23 381 4 133 8 24 395 7 6 5 805 20 508 4 975 7 169 3 391 8 340 5 057 9 276 3 487 5 4 4 633 3 8 413 2 3 646 1 Total Building Size RSF 922 7 481 218 635 365 924 209 746 259 097 287 043 3 681 287 043 3 661 394 057 6 054 37 50 40 00 35 00 42 00 40 00 40 00 36 00 30 00 29 00 35 00 OPEX 17 57 17 99 16 38 15 43 15 91 16 93 15 67 Available Space SF 32 529 51 290 12 565 94 657 77 300 8 366 65 760 15 14 6 37 27 3 17 Average Asking Rate NNN Availability Parking Ratio Spaces 1 000 SF 2 50 3 00 3 00 3 00 2 50 2 50 2 30 Year Built Renovated 1992 2002 2005 1996 1999 1990 1990 2007 1987 2011 0 1 0 2 3 0 1 SunTrust Center Bank of America Centre Las Olas Centre I 350 Las Olas Centre New River Center The Autonation Building 110 Tower of Full Floors Available 515 E Las Olas Blvd 12 401 E Las Olas Blvd 450 E Las Olas Blvd 350 E Las Olas Blvd 200 E Las Olas Blvd 200 SW 1st Ave 110 SE 6th St

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Color Key No Availability Direct Available Sublet Available Full Floor Direct Available Full Floor Sublet Available Not For Occupancy 30 29 28 27 26 5 152 5 943 3 944 16 285 25 199 24 25 199 23 16 285 25 199 22 17 708 25 199 21 17 708 25 243 20 9 797 4 166 8 362 3 462 16 447 6 675 8 354 3 257 4 518 18 18 392 16 452 2 282 17 298 8 087 17 13 511 8 316 16 6 074 6 464 6 090 15 4 078 6 000 25 243 14 7 609 4 936 3 511 19 5 115 6 576 2 553 2 172 25 16 285 11 213 3 334 16 570 9 068 9 051 13 7 234 20 475 4 353 2 617 7 203 15 889 9 695 15 889 16 690 10 203 17 621 4 782 5 272 15 889 25 907 6 784 12 14 070 11 10 815 10 9 15 889 16 677 3 347 15 889 16 671 2 596 15 916 16 767 8 811 2 507 10 776 11 451 12 603 8 3 606 7 6 5 4 3 2 12 169 6 524 1 228 1 1 739 6 799 4 271 4 416 324 429 282 883 225 500 342 906 176 020 177 080 338 201 355 000 28 50 32 50 25 00 35 50 34 50 23 00 29 00 24 60 24 00 29 00 40 00 60 00 16 95 17 76 17 50 12 00 14 51 16 84 15 75 16 00 93 324 47 946 75 532 210 324 85 179 101 860 83 087 215 230 29 17 33 61 48 58 25 61 2 80 2 30 2 40 2 30 3 00 2 30 3 00 3 00 1986 1996 1986 2018 1991 1982 1999 1984 2001 1984 2020 3 1 3 10 4 4 0 5 Broward Financial Centre One Financial Plaza 200 East Broward 110 East Plaza 100 Tower 101 1 East Broward The Main Las Olas 200 E Broward Blvd 110 E Broward Blvd 100 NE 3rd Ave 101 NE 3rd Ave 1 E Broward Blvd 201 E Las Olas Blvd 500 E Broward Blvd 100 SE 3rd Ave 13

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Legal 725 Real Estate Construction 480 Retail 439 Financial Insurance 350 Medical 258 Top 12 Leading Sectors by Number of Businesses Food Service Hospitality 235 Government 179 Manufacturing Wholesale 158 Downtown Fort Lauderdale has established itself as a world class international business center and one of the most desirable locations for new expanding or relocating businesses This attractive commercial environment is supported by a diverse range of leading industry sectors ranging from legal and financial services to technology and engineering providing jobs to more than 60 000 employees Information Services 115 Arts Entertainment 89 Transportation 73 Education 66 50 14 100 150 200 250 300 350 400 450 500 550 600 650 700 750

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DowntownFTL is a destination of opportunity and fosters business development for large corporations looking to relocate their headquarters as well as small businesses in emerging neighborhoods 15

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Retail Market Indicators Year End 2020 DOWNTOWN WEST PALM BEACH 1 Million SF 14 000 SF 0 SF 40 79 PSF total inventory under construction new deliveries asking rents 45 5 Year Growth Vacancy Rate 3 6 4 6 2020 2019 DOWNTOWN FORT LAUDERDALE 2 4 Million SF 33 000 SF 22 000 SF 35 56 PSF total inventory under construction new deliveries asking rents 49 5 Year Growth Vacancy Rate 8 0 5 6 West Palm Beach 2020 2019 Fort Lauderdale DOWNTOWN MIAMI Miami 5 2 Million SF 0 SF 354 000 SF 57 56 PSF total inventory under construction Vacancy Rate 16 5 18 2 2020 16 2019 new deliveries asking rents 80 5 Year Growth

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55 399 Median Disposable Income 55 181 Per Capita Income 67 471 Median Household Income 2020 79 487 Median Household Income 2025 17

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NE W R E TA I LER S Las Olas North of Broward Blvd Flagler Village RIVERHOUSE VEGAN VILLAGE South of the River 18

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DowntownFTL Historical Retail Market 45 00 Rental Rates 40 00 Easing restrictions as well as the return of consumers and tourists to the stores and restaurants has aided on the road to recovery in Downtown Fort Lauderdale relative to rest of the nation 35 00 30 00 25 00 20 00 15 00 10 00 5 00 0 00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 FTL Urban Core Q1 2021 Broward 12 0 Vacancy Rates 10 0 8 0 6 0 4 0 2 0 0 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 FTL Urban Core Q1 2021 Retail vacancy rates quickly rose to 8 2 in 2020 but didn t climb as high as the prior peak in 2013 Several restaurant and retail spaces were affected by lock down measures however a number of new retailers successfully entered the market in 2020 Broward Top Markets in US for Investor Demand Retail Transactions Despite a national slow down in investment activity Fort Lauderdale ranked 12th in the nation for investor demand according to the PWC Emerging Trends in Real Estate 2021 It is classified as a Magnet Market for both people and companies making it an attractive location for investors 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Austin Dallas Fort Worth Nashville Charlotte Boston Raleigh Durham Atlanta Denver Long Island Seattle Inland Empire Fort Lauderdale Washington DC Northern VA San Jose Orange County 19

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Downtown Retail Trends Impact of Covid 19 on Downtown Retail Curbside Pick Up Dark Stores Pop Up Stores Buy Online Pick Up In Store Adapting and Rightsizing 20 WH AT TO EX PEC T MORE OF IN 2021 Convenience Shopping Personalization Outdoor Dining Ghost Kitchens Shop Local Initiatives Value Retail Supply Chain Resilience Furniture and Furnisihings Consumer Confidence Returning Health and Well being Concepts Social Commerce

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DowntownFTL is seeing a boom in new restaurant options following the critical mass of residents living in the new residential developments Diners are looking for quality and authentic experiences and DowntownFTL restaurateurs are delivering 21

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H O TEL TR E N DS T O WAT C H IN 2021 Embracing Locals through Public Amenities More Common Areas and Amenities Rooftop Terraces with F B Concepts Staycations and Domestic Tourism Automation Digital and Contactless Solutions Alternative Revenue Streams Personalization and Experiences Environmental Responsibility and Economic Sustainability 22

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Port Everglades Port Everglades is one of the busiest cruise ports in the world More than 3 9 million passengers in FY2019 Hotel Market Indicators Fort Lauderdale Beach Feb 2021 67 38 Occupancy 192 41 Average Daily Rate 133 23 Revenue Per Available Room Florida 56 10 Occupancy 148 28 Average Daily Rate 83 12 Revenue Per Available Room United States 43 80 Occupancy 98 31 Average Daily Rate 43 05 Revenue Per Available Room Fort Lauderdale Hollywood International Airport One of the nation s fastest growing airports with close to 37 million passengers in and out of Fort Lauderdale in 2019 Brightline Express intercity passenger rail service connecting Downtown Fort Lauderdale to Miami West Palm Beach and soon Orlando Las Olas Boulevard A unique and eclectic shopping and dining hub offering fashion boutiques art galleries memorable restaurants and sidewalk cafes and bars Art Culture Fort Lauderdale s vibrant arts scene ranked 4th in the nation based on art businesses per capita Four blocks of former warehouses transformed into an artist space at Flagler Arts and Technology FAT Village Entertainment Home to many cultural and entertainment venues within walking distance of one another including the Broward Center for the Performing Arts in the downtown Riverwalk Arts Entertainment District Major Events Home to major events attracting thousands of visitors including the annual Fort Lauderdale International Boat Show and the Fort Lauderdale Air Show among many others Conventions An expanded waterfront Greater Fort Lauderdale Broward County Convention Center will offer 1 2 million square feet of space with an 800 room upscale connecting hotel Beaches More than 7 miles of sparkling beaches run along the East side of the City 23

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NE W DEVELO PMENTS Hotels Development Boom Hyatt Centric Located on Las Olas Boulevard 113 luxury condominiums 238 Modern Guest Rooms 8 500 SF restaurant Speakeasy Experience at Room 901 Find the secret code to enter Room 901 a converted hotel room with a bartender in residence program 901 welcomes bartenders around the country from closed bars due to the pandemic to host pop up events with their signature cocktails Tru Home2 Suites by Hilton Located in Flagler Village 106 Extended Stay Home2 Suites 112 Mid Range Tru Brand Rooms 5 000 SF Private Event Conference Space Unique Dual Brand Hotel Two complemenrary Hilton brands that cater to a crossgeneration of leisure and business travelers with Tru catering to the younger traveler with colorful design and efficient guest room layouts and ample amenities and Home2Suites offering midscale all suite extended stay accomodation with contemporary and customizable rooms Quantum at Flagler Village Located in Flagler Village 137 Room Courtyard by Marriot Hotel 337 Apartments 20 884 SF Retail Public Rooftop Pool and Bar The 9th floor will feature a rooftop lounge with retractable door that opens to a 10 000 SF pool deck with two gazebos two bars and a turfed area with a retractable awning The rooftop and pool will be accessible to the public without a day pass 24

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Office Buildings Built in 2020 The Main Las Olas Contemporary 25 story office tower Close to 370K SF Class A office space 12 foot floor to ceiling vision glass LEED Gold certified 3 360 SF office lounge amenity deck and conference center Secured VIP parking with private elevator access Directional Antenna System DAS for superior cell performance Tenants Akerman BBX Capital Berger Singerman Templeton Company Stiles Plans for high end restaurant and casual eateries on ground floor Covered ground level plaza outdoor amenity space Notable Feature Part of a 1 4 million square foot mixeduse office residential and retail community including a 27 story 341 unit apartment tower and GreenWise organic grocer on ground floor of residences Work out fitness center with showers changing areas 550 Building Seven story office retail buidling close to Broward County Courthouse The SOLO Shoppes will comprise 13K SF of street level retail space Tenants Gutterman Trial Group Berger Commercial Realty Bank OZK 86K SF Class A office space 7 5K SF restaurant Notable Feature State of the art 100K SF office and retail building close to the new Broward County Courthouse This is the first new office building in Fort Lauderdale s South of Las Olas SOLO District since 1989 12 5K SF floor plate 634 space parking garage patio space 25

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Cycle and Outlook Fort Lauderdale International Airport Passengers 5 4M As consumer confidence to travel picks up Fort Lauderdale International Airport FLL is at the forefront ranking 4th in total passenger traffic recovery and 5th 6 000 000 in international traffic recovery amongst U S airports 4 4M 5 000 000 4 000 000 2 7M 3 000 000 2 000 000 939K 1 000 000 0 Q2 2020 Q3 2020 Q4 2020 Q1 2021 projected Hotel Market Fundamentals Hotel market fundamentals outpace the State and Nation reflecting the resilience of the Fort Lauderdale tourism industry and a pent up demand for travel 80 67 148 44 30 20 43 50 0 Fort Lauderdale Beach Florida Avg Dail y Rate 26 50 40 83 133 100 60 192 150 70 56 200 98 250 RevPAR U S Occupancy 10 0

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Greater Fort Lauderdale Unemployment Rate 2 7 6 9 14 0 Greater Fort Lauderdale s 6 9 unemployment rate is a significant indicator of a recovery in motion compared to the pandemic high of 14 in Q2 2020 According to WalletHub Fort Lauderdale ranks among the top U S cities bouncing back the fastest Pre pandemic Q4 2019 Peak Q2 2020 Today Q4 2020 Greater Fort Lauderdale Net Migration 7 6K 7 8K 2 02 2 f 2 02 3 f 4 9K 4 1K 4 9K Net migration to the Greater Fort Lauderdale area has been climbing year over year with a forecasted spike in net relocations coming in 2022 and 2023 2 8K A Recovery in Motion 2 018 2 019 2 02 0 f 2 02 1 f Fort Lauderdale Pompano Beach Deerfield Beach MSAD 27

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Worker Relocations Top 10 source markets for worker relocations to Miami Fort Lauderdale according to LinkedIn over the past 12 months Tallahassee NY IL D C KS Top Out of State Migration 1 New York City NY 2 Boston MA 3 Chicago IL 5 Wichita KS 10 Washington D C 28 Top Out of County Migration 4 Tallahassee FL 6 Gainesville FL Top Out of Country Migration Miami 7 Miranda Venezuela 8 Sao Paulo Brazil 9 Caracas Venezuela MA

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2021 and Beyond A Return to Normalcy Late Expansion At Risk MidExpansion In Recession Recovery Control of the Virus Mass Vaccination Rollout In Migration Soaring Tourism Returning Workforce Business Relocations Rapid Expansion of E Commerce Leadership Innovation 29

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The Fort Lauderdale Downtown Development Authority DDA is a publicprivate partnership agency that powers the experience growth and prosperity of Downtown Fort Lauderdale The DDA strives to grow DowntownFTL with major investments in real estate infrastructure and transportation improve public spaces like streets and parks for all to enjoy and connect the city through partnerships that celebrate community 30

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APRIL 2021 SOURCES CREDITS The following sources were used for this report Bureau of Labor Statistics City of Fort Lauderdale Colliers International Costar ESRI 2020 Federal Reserve Economic Data FRED Ft Lauderdale Hollywood International Airport FLL Greater Fort Lauderdale Alliance Greater Fort Lauderdale Convention and Visitors Bureau InfoGroup Inc LinkedIn Oxecon Port Everglades Price Waterhouse Coopers PWC Real Capital Analytics RCA Smith Travel Research STR U S Census Bureau PHOTO CREDITS Photo credits are listed by page indicated by images left to right Cover Sublime Imagery Page 2 Sublime Imagery Page 7 Sublime Imagery Page 8 Adobe Stock Page 9 Sublime Imagery Page 10 CoStar Page 12 CoStar Page 15 Sublime Imagery Page 15 Adobe Stock Sublime Imagery Page 17 Sublime Imagery Page 18 Sublime Imagery Page 21 moments by mel Alfie Hamilton circlehousecoffee iStock tacocrafttaqueria Page 22 Fort Lauderdale Magazine hyattcentriclasolas the_dalmar Trip Advisor Page 24 hyattcentriclasolas Tru Home2 Suites by Hilton Real Deal Page 25 Sublime Imagery 550building Page 26 Sublime Imagery Page 30 Adobe Stock CONTRIBUTORS Ken Krasnow Vice Chairmain Institution Investor Services Florida ken krasnow colliers com Verity Mosquera MBA Research Consulting Manager South Florida verity mosquera colliers com Kris Mitchell Marketing Manager South Florida kris mitchell colliers com COLLIERS INTERNATIONAL FLORIDA LLC 200 EAST BROWARD BOULEVARD SUITE 120 FORT LAUDERDALE FL 33301 1 954 652 4600 colliers com southflorida This document has been prepared by Colliers International FTL DDA for advertising and general information only Colliers International and FTL DDA make no guarantees representations or warranties of any kind expressed or implied regarding the information including but not limited to warranties of content accuracy and reliability Any interested party should undertake their own inquiries as to the accuracy of the information Colliers International and FTL DDA excludes unequivocally all inferred or implied terms conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from This publication is the copyrighted property of Colliers International and FTL DDA and or its licensor s 2021 All rights reserved 31

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DOWNTOWNFTL COMMERCIAL REAL ESTATE REPORT SPRING 2021 ddaftl org 954 463 6574 110 E Broward Boulevard Suite 1610 Fort Lauderdale FL 33301 Follow us ddaftl