Q2 2025 Fort Lauderdale Retail Market Report
Highlights
- Leased space now accounts for over 13% of total retail inventory, up from a historical average of around 11%. That tighter supply is giving landlords pricing power, especially as quality space gets harder to come by.
- The construction pipeline is at a record low, with just 42,000 square feet set to deliver in 2025. With little new supply coming online, expect space to stay tight and competition to stay high.
- Sales are still happening, but things are slowly plateauing as investors aren’t willing to pay what they used to. High interest rates have pushed cap rates up to 6.1%, cooling off pricing momentum even in a strong leasing environment.
By the Numbers
- Sales Volume: $200M
- Cap Rate: 5.9%
- Market Sale Price Per SF: $343
- Vacancy Rate: 3.9%
- Rent Growth: 2.4%
- Market Asking Rent Per SF: $36.31
- SF Under Construction: 314K
- SF Absorbed: (76.3K)
- SF Delivered: (313K) | Q2 2025 | Source: CoStar Group
Demographics
- Unemployment: 3.3%
- Current Population: 2,053,389
- Households: 796,285
- Median Household Income: $77,952
Market Performance
The Fort Lauderdale retail sector has entered a healthy slowdown. While leasing and sales volumes are no longer reaching the peak levels of 2022, the underlying market fundamentals remain strong. Low vacancy rates, stable rent growth, and consistent tenant demand continue to support market stability.
Rather than signaling weakness, the recent moderation reflects a return to balance. Vacancy sits at 3.9 percent, in line with the 10-year average and outperforming national benchmarks. Move-outs remain limited, particularly among essential retail categories such as fitness centers, grocers, discount home goods, and entertainment users.
Rent growth has normalized, easing from the double-digit highs of 2022 to a more sustainable 2.4 percent year-over-year. Prime submarkets such as Downtown Fort Lauderdale and Las Olas continue to see asking rents between $50 and $75 per square foot, especially for spaces under 10,000 square feet. Overall, the market is rebalancing rather than retreating, with solid fundamentals providing long-term support despite a more measured pace of activity.
Market Asking Rent Per SF and Vacancy Rate
Source: CoStar Group
Under Construction
The construction pipeline is taking cues from the state of the market, with only 284,750 square feet currently underway and activity expected to stay below the 10-year average of 370,000 square feet. Pompano Beach, Southwest Broward County, and Fort Lauderdale account for over 70% of active development. Key projects include 777 Isle of Capri Blvd. (140,000 SF), Victory Say Plaza (63,000 SF), and a Publix-anchored site (28,000 SF) — all set to deliver in 2025 and already showing strong pre-leasing momentum. Across South Florida, most new retail is limited to ground-floor space in mixed-use properties or renovations of existing centers, reinforcing tight availability and upward rent pressure.
Sales
The market feels predictable right now. But that’s not a bad thing. Activity has calmed down from the record-high frenzy of the past few years, but there’s no volatility, panic, or dramatic shakeups. It’s a calm, steady environment. Tenants are sticking around, allowing investors to plan ahead and pursue new opportunities as the market settles into a rhythm. The focus has shifted toward stabilized centers, grocery-anchored assets, and redevelopment plays.
Major deals included:
- A neighborhood center in Weston, sold by Barings to EDENS for $51 million ($471/SF), despite being only 63% occupied at the time of sale.
- The Miramar Parkway Plaza, anchored by Presidente Supermarket, traded for $34 million ($302/SF) with occupancy over 90%.
- Publix Super Markets continued acquiring their own centers, including a $58 million purchase of the renovated Ramblewood Square.
- The Quay, a retail site near downtown Fort Lauderdale, sold for $48 million ($577/SF) and came with entitlements for 361 residential units, signaling investor interest in mixed-use repositioning.
Sales Volume and Market Sale Price Per SF
Source: CoStar Group
Submarket Performance Rankings
