CORFAC News

Weston, FL (March 18, 2014) – Ken Morris, SIOR, RPA and Principal of Morris Southeast Group/CORFAC International briefed the Greater Ft. Lauderdale/Broward County Alliance on office and industrial market conditions last week at the City of Miramar’s municipal building located at 2200 Civic Center Place. Morris’ role as a market sector expert was part of a monthly “Partner Council” series of meetings that was attended by approximately two dozen economic development professionals from most of the cities in Broward County. The Greater Ft. Lauderdale Alliance’s mission is to lead Broward County in building a stronger and more diversified economy by promoting increased public/private sector collaboration, drive job growth, enhance Broward’s business climate and promote regional initiatives. Understanding current commercial real estate market conditions helps the Alliance establish benchmarks and related analytics to further the business group’s interests and initiatives.Morris’ presentation highlights included:

• Office Market: The overall Broward County office vacancy rate is either $12.7% or 19.6%, depending on the data source. Absorption of space is positive and office rents are increasing. There is much greater demand for Class A, new space vs. older (Class B and C) office buildings. Average amount of office space per employee continues to drop.
   
• Office Investment Trends: Capitalization rates have lowered, meaning investors sense less risk in buying office buildings. There is a lack of new product coming to market, while institutional and foreign investors are the leading buyers of South Florida office building assets, particularly Canadian investors. Medical office buildings are in high demand. 
   
• Industrial Market: The vacancy rate for overall Broward County industrial space is ranging from 8% to 10%, and low enough for speculative development to have commenced. Rental rates have increased 200-250 basis points from the low point in the market a few years ago and capitalization rates (6.5% to 7.5%) have decreased with strong investor demand. South Florida is considered a “top tier” industrial investment market in the U.S. 

About Morris Southeast Group/CORFAC InternationalFounded in 1978, Weston FL-based Morris Southeast Group/CORFAC International provides leasing, investment sales, property management and project management services throughout South Florida. The company is the exclusive South Florida affiliate of CORFAC International, a network of independently owned and entrepreneurial commercial brokerage and property management firms with 87 worldwide locations. For Miami Tenant Representation, South Florida Commercial Property, finding a Ft. Lauderdale Commercial Real Estate Broker and Landlord Representation in Broward, Dade and Palm Beach counties, contact President Ken Morris, SIOR, of Morris Southeast Group/CORFAC International at (954) 474-1776 or visit www.morrissegroup.com.About CORFAC InternationalCORFAC International (Corporate Facility Advisors) is comprised of privately held entrepreneurial firms with expertise in office, industrial and retail real estate leasing and investment sales, multifamily property acquisitions and dispositions, property management and corporate services. Founded in 1989, CORFAC International is celebrating its 25th anniversary in 2014. In association with FIABCI (the International Real Estate Federation) and global affiliates, CORFAC International offers commercial real estate services with market reach in 60 countries worldwide. In recent years, CORFAC firms have averaged over 9600 completed transactions annually totaling more than 513 million square feet worth an excess of $5.95 billion for their customers. For more information on the CORFAC network, contact 703.532.6160 or visit www.corfac.com.