Lee & Associates South Florida Q4 Report: Local Retail, Office Sectors Maintain Strength

Region’s multifamily and industrial sectors continue softening trend in fourth quarter of 2024 

South Florida’s retail and office markets kept shining – especially in comparison to the rest of the nation – during the fourth quarter of 2024, according to Lee & Associates South Florida’s Q4 2024 market report. On the flip side, the region’s multifamily and industrial sectors continued a softening trend from the previous quarter, but there are positive indicators early in the new year.

Retail vacancies remained extremely low in the fourth quarter, only inching up year-over-year from 3.0% to 3.2%. Average asking rents also increased year-over-year, from $36.07 per square foot NNN to $36.73.

“South Florida’s retail market continues to exhibit robust performance as spending remains elevated relative to pre-pandemic levels,” Lee & Associates South Florida Principal Stephen DeMeo said. “New retail space will likely come to market in small doses, so prospective tenants may have limited options in sought-after locations.”

The tri-county area of South Florida closed the fourth quarter of 2024 with an 8.4% office vacancy rate, slightly up from 8.1% a year earlier. The average asking rent climbed year-over-year from $36.50 per square foot triple-net (NNN) to $38.02 per square foot.

“With elections in the rear view, the fourth quarter gave us a glimpse of what the start to 2025 could be,” Lee & Associates South Florida Principal Bert Checa said. “There is strong demand for second-generation Class A space, as tenants continue to right-size from older Class B spaces into smaller Class A spaces. New-to-market tenants continue to absorb most of the new supply of first-generation Class A office space.”

South Florida’s multifamily sector recorded a year-over-year rise in vacancies in the fourth quarter of 2024, from 5.7% to 6.1%. Asking rents increased year-over-year from $2,184/month to $2,214/month.

The sector “is resilient, and Q4 showed positive signs across most metrics that it may have even ‘bottomed’ in Q3,” Lee & Associates Principal Todd Cohen said. “With November’s election uncertainty resolved, and interest rates slowly trending downward, there is reason for optimism.”

South Florida’s industrial vacancies jumped significantly in the fourth quarter, from 3.2% to 4.8%. The average asking rent dipped from $17.38 per square foot NNN to $17.10 in the same span.

“South Florida continues to ride a high wave of market growth for industrial assets in strategic locations, while leasing momentum softens with slight uncertainty from possible policy impacts on trade next year,” Lee & Associates South Florida Principal Michael Hinton said. “Savvy tenants are rethinking and adjusting warehouse-to-office ratios, freeing space, parking spots, and possible savings on” tenant improvements.

To view the full sector-by-sector breakdowns, click here: https://www.dropbox.com/scl/fo/7g614r2okzyz15hfmupa4/AGi0Hxcsq8jA-a4-U56lwvA?rlkey=13hz1r09ia7pr3cyb476qihbv&st=xbbqhc9u&dl=0

About Lee & Associates | South Florida

Lee & Associates | South Florida is a fully vertical commercial real estate brokerage firm focused on industrial, office, retail, multifamily, investment and land sectors. Our dedicated team of professionals is led by Matthew Rotolante, CCIM, SIOR a 4th generation South Florida native in a family that has owned and operated commercial property here since 1928. Lee & Associates is the largest agent owned brokerage in the nation with Senior Agent’s ability to earn profit share and the highest splits while still receiving full resources, support and leads from our national network. Our collaborative and cheerful culture allows for open communications throughout the company, fostering the sharing of information and best practices to better enable client decision making.  The Lee & Associates’ robust national network that sold and leased nearly $32.4 Billion in 2021 offers clients a cross-market platform of expertise and deal opportunities across all asset specialties and representation roles. For the latest news from Lee & Associates South Florida, visit leesouthflorida.com or follow us on FacebookLinkedInTwitter and Instagram, our company local news.

About Lee & Associates

Lee & Associates is a commercial real estate brokerage sales, leasing and management firm. Established in 1979, Lee & Associates has grown our service platform to include over 75 offices in the United States and Canada. Lee & Associates is the largest agent owned commercial real estate brokerage where agents get the greatest return for their efforts and hence are more committed and better enabled to provide superior results for their customers.  For the latest news from Lee & Associates, visit lee-associates.com or follow us on FacebookLinkedInTwitter and Link, our company blog.