1 BY THE NUMBERS 1 MIRAMAR/PEMBROKE PINES $12-$50 6,552,226 sf 8.5% $23.42 AVG. ASKING in 40 centers VACANCY RATE AVERAGE ASKING RENT RENT RANGE 2 HOLLYWOOD/HALLANDALE $11-$38.50 1,820,221 sf 6.4% $23.29 AVG. ASKING in 15 centers VACANCY RATE AVERAGE ASKING RENT RENT RANGE 3 DAVIE/WESTON 4,454,071 sf 8.9% $22.88 $12-$38 in 33 centers VACANCY RATE AVERAGE AVG. ASKING ASKING RENT RENT RANGE 4 DANIA/S. FORT LAUDERDALE 3.9% $25.32 $13-$35 2,800,563 sf AVERAGE AVG. ASKING in 15 centers VACANCY RATE ASKING RENT RENT RANGE 2 5 CORAL SPRINGS/ MARGATE 6,857,746 sf 17.5% $18.46 $10-$35 in 52 centers VACANCY RATE AVERAGE AVG. ASKING ASKING RENT RENT RANGE 6 PLANTATION 13.3% $24.49 $12.50-$32.50 2,189,040 sf AVG. ASKING in 16 centers VACANCY RATE AVERAGE ASKING RENT RENT RANGE 7 TAMARAC/SUNRISE $16.79 5,466,508 sf 15.1% $9.50-$28 AVERAGE in 47 centers VACANCY RATE AVG. ASKING ASKING RENT RENT RANGE 8 LAUDERDALE LAKES 2,214,146 sf 10.8% $16.06 $9-$28 in 12 centers VACANCY RATE AVERAGE AVG. ASKING ASKING RENT RENT RANGE 9 OAKLAND PARK/ N. FORT LAUDERDALE $22.42 $13-$30 1,985,992 sf 9.7% AVG. ASKING in 16 centers VACANCY RATE AVERAGE ASKING RENT RENT RANGE 10 POMPANO BEACH / DEERFIELD BEACH $20.03 $13-$28 3,044,229 sf 9.5% AVERAGE AVG. ASKING in 24 centers VACANCY RATE ASKING RENT RENT RANGE 3 OVERVIEW Broward County’s shopping centers reversed are some big-box retailers like Sports a three-year trend of downward rents, Authority and dd’s Discount, each showing an increase of 3.1% in countywide opening a couple of new stores in Broward. average asking rent between 2011 and 2012. But the recovery is spotty as vacancy Conversely, Kmart continues to tinker with remains a noticeable challenge in several of its real estate, closing one Broward store, the county’s submarkets. while Office Depot and Staples are giving back a portion of their big-box spaces in Average asking net rent for inline space in some of their locations, as the office supplies Broward County is $21.39 in 2012, compared retailers battle it out for dominance, a battle to $20.74 in 2011. The countywide vacancy that claimed four Office Max and one Office rate in 2012 is 11.2%, a slight downward Depot casualties. Similarly, L.A. Fitness fluctuation from 11.7% the year before. continues going strong in the fitness sector, while Bally’s Health & Fitness closed one The uneven recovery is due to a mixed- store in Broward. bag of leasing activity. On one hand, banks Making occupancy a challenge are also some and medical users have been noticeably 1.1 million square feet of new retail space active over the past year, filling up several delivered in Broward County between 2008 inline spaces and snatching many of the and 2009, an amount of new inventory that Blockbuster Video spaces that went dark. hit the market smack in the middle of the Also seizing expansion opportunities economic recession. CHANGE IN AVERAGE ASKING RENT AND VACANCY % Change Vacancy Rate Avg. Asking Rent Number Submarket in Rent of (Listed by Change 2011- Centers 2011 2012 in Rent) 2011 2012 2012 16 15.3% 13.3% Plantation $22.53 $24.49 8.70% 12 11.9% 10.8% Lauderdale Lakes $14.80 $16.06 8.51% Hollywood / 15 5.0% 6.4% $22.20 $23.29 4.91% Hallandale Pembroke Pines / 40 8.6% 8.5% $22.50 $23.42 4.09% Miramar Dania / 15 5.1% 3.9% $24.61 $25.32 2.89% S. Fort Lauderdale Coral Springs / 52 17.1% 17.5% $18.41 $18.46 0.27% Margate 33 8.8% 8.9% Davie / Weston $22.83 $22.88 0.22% 47 17.3% 15.1% Tamarac / Sunrise $16.92 $16.79 -0.47% Oakland Park / 16 12.1% 9.7% $23.11 $22.42 -2.99% N. Fort Lauderdale Pompano Beach / 24 8.6% 9.5% $21.24 $20.03 -5.70% Deerfield Beaches 270 11.7% 11.2% Broward County $20.74 $21.39 3.13% 4 In this uneven recovery, half of the 10 At the other end of the spectrum, the submarkets show increases in average asking Pompano Beach/Deerfield Beach submarket rent, the strongest of these in Plantation had the biggest drop in average rent, down and Lauderdale Lakes, going up 8.7% and 5.7%. This isn’t the most challenged of all 8.5% respectively. Helping the Plantation submarkets, but leasing activity over the past submarket were the absorption of three year wasn’t robust enough to match turnover former Blockbuster spaces and the opening of inline space, including two Blockbuster two new big-box stores: dd’s Discount and Video stores that haven’t been re-absorbed. Total Wine and More. In Lauderdale Lakes, The Oakland Park/N. Fort Lauderdale the opening of a new Marshalls helped lower submarket had the second highest drop, vacancy and push average rent upwards, 3%, mostly due to lack of availability in its recovering some of the 14% drop between highest-priced center, thus eliminating 2010 and 2011. that higher value from the 2012 average. Occupancy improved in this submarket, due Southern Broward County also is faring to absorption of a vacant Winn Dixie, the well, with the Pembroke Pines/Miramar opening of a Ross Dress for Less, and the and Hollywood/Hallandale submarkets absorption of a Blockbuster Video space. seeing higher average rents, up 4.9% and 4.1% respectively. Brisk inline leasing and Activity from big-box retailers slowed two new big-box users countered two big- down when compared to the previous year, box closings in Pembroke Pines/Miramar, when hhgregg and Aldi were grabbing site opportunities throughout the region. while the small submarket of Hollywood/ Nonetheless, Walmart continues on an Hallandale attracted several new inline aggressive expansion path, opening a new tenants. store in Pembroke Pines and planning BROWARD COUNTY SNAPSHOT Number Submarket Total Inventory Avg. Asking Vacancy of (Listed by Change (sq. ft.) Rent 2012 Rate Centers in Rent) Dania / 15 2,800,563 $25.32 3.9% S. Fort Lauderdale 16 2,189,040 Plantation $24.49 13.3% Pembroke Pines / 40 6,552,226 $23.42 8.5% Miramar Hollywood / 15 1,820,221 $23.29 6.4% Hallandale 33 4,454,071 Davie / Weston $22.88 8.9% Oakland Park / 16 1,985,992 $22.42 9.7% N. Fort Lauderdale Pompano Beach / 24 2,912,480 $20.03 9.5% Deerfield Beach Coral Springs / 52 6,857,746 $18.46 17.5% Margate 48 5,466,508 Tamarac / Sunrise $16.79 15.1% 12 2,214,146 Lauderdale Lakes $16.06 10.8% 271 37,252,993 Broward County $21.39 11.2% 5 AVG. ASKING RENT IN RELATION TO INCOME AND POPULATION SIZE 2012 Avg. 2012 2012 Avg. Asking Submarket Estimated HH Income Rent Population $22.88 Davie / Weston 214,437 $96,725 $18.46 Coral Springs / Margate 242,935 $79,429 $23.42 Pembroke Pines / Miramar 279,966 $75,622 $24.49 Plantation 130,285 $73,733 $25.32 Dania / S. Fort Lauderdale 113,465 $69,213 Oakland Park / $22.42 100,436 $65,332 N. Fort Lauderdale Pompano Beach / $20.03 181,174 $59,591 Deerfield Beach $16.79 Tamarac / Sunrise 225,911 $52,203 $23.29 Hollywood / Hallandale 170,086 $52,050 $16.06 Lauderdale Lakes 101,201 $46,427 $21.39 Broward County 1,759,896 $68,027 five new stores throughout the county: Leasing activity over the past 12 months also Davie, Deerfield Beach, North Lauderdale, includes an ever growing array of frozen Pompano Beach and Oakland Park. yogurt stores that continue to dot inline dd’s Discount and Dick’s Sporting space, while a cadre of new uses emerged Goods opened in Oakland Park/N. Fort for a total of 11 Blockbuster spaces: PNC Lauderdale; Marshalls opened a new store Bank, Ulta Cosmetics, Baptist Health, in Lauderdale Lakes; and a new Publix Rainbow Shops, Alex Bicycle Shop, is under construction in Pompano Beach. Bank United, Crossfit Seige, AT&T, Also, medical users Miami Children’s Mattress One, Classy Girl Beauty Hospital and Baptist Hospital both Supply and Tools and Much More. opened new big-box facilities in Broward Also noticeable is the expansion of Golden shopping centers. Krust Caribbean Bakery & Grill, a franchise chain originating from Jamaica Three tenants new to South Florida entered with U.S. headquarters in Bronx, NY, the market: Okey Dokey, a chain of small and which opened three new locations, in discount grocery stores owned by a Russian Miramar, Coconut Creek and Tamarac. company, and The Garlic Knot, a pizza restaurant based in Littleton, Colo. but Although the recession is technically over, which tries to emulate New York-style pizza recovery from its impact isn’t. For the second and pasta, and Uddersweets, a candy year in a row, estimated average household and ice cream store from local restaurateur income in Broward County is lower than the Weston Dining Group. Okey Dokey has year before: $68,027 in 2012, compared signed for some 12 stores in Broward County to $68,601 in 2011, and $73,345 in 2010. (9 included in this report), while Garlic In tandem with the countywide measure, Knot will open a franchise in Oakland Park average household incomes in 2012 were in September 2012.