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UNIVERSITY DRIVE MOBILITY IMPROVEMENTS PLANNING STUDY
2.2 Data Collection
Economic/Market Assessment August, 2013
Prepared for:
Prepared by:
W‐ZHA, LLC
Economic/Market Assessment
University Drive Mobility Improvements Planning Studywww.UniversityDriveImprovements.com
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Table of Contents
1.0 INTRODUCTION ............................................................................................................................................ 3
2.0 STUDY PURPOSE .......................................................................................................................................... 3
3.0 ECONOMIC FRAMEWORK ............................................................................................................................ 3
4.0 MARKET ASSESSMENT ............................................................................................................................... 20
List of Tables
Table 1: Florida’s Most Populous Counties ........................................................................................................... 4 Table 2: Population and Household Trends, Florida and Broward County ........................................................... 4 Table 3: Municipalities Ranked by Population, Broward County, 2010 ................................................................. 7 Table 4: Population Trends, Broward County Municipalities, 2000‐2010 ............................................................ 8 Table 5: Population Projections, Broward County Municipalities, 2010‐2017 ................................................... 10 Table 6: Median Income, Broward County, 2010 ................................................................................................ 11 Table 7: Non‐Agricultural Jobs by Industry, 2000 and 2012 ............................................................................... 12 Table 8: Non‐Agricultural Jobs by Industry, 2000, 2007 and 2012 ..................................................................... 13 Table 9: Employment Projections by Industry, 2012 – 2020 ............................................................................... 15 Table 10: Household Trends, Broward County Municipalities, 2000‐2010 ......................................................... 20 Table 11: Household Projections by Municipality, 2010‐2017 ............................................................................ 21 Table 12: Employment Trends by Industry, Broward County, 2007‐2012 .......................................................... 25 Table 13: Office Space and Overall Vacancy, Broward County, 1st Quarter 2013 ............................................... 26 Table 14: Class A Office Space Overall Vacancy and Rent by Submarket, 1st Quarter 2013 ............................... 28 Table 15: Office Buildings on University Drive in Coral Springs .......................................................................... 29 Table 16: Employment Projections by Industry, Broward County, 2012 – 2020 ................................................ 30 Table 17: Net New Office Development Potential, 2020 .................................................................................... 30 Table 18: Non‐Regional Shopping Center Supply, Broward County ................................................................... 33
List of Figures
Figure 1: Real Population Change Florida Counties, 2000‐2010 ........................................................................... 5 Figure 2: Rate of Population Change Florida Counties, 2000‐2010. .................................................................... .6 Figure 3: Population by Census Tract, 2010 .......................................................................................................... 9 Figure 4: Job Trends, Broward County, 2000‐2012 ............................................................................................. 12 Figure 5: Unemployment Rate, Broward County, 2000‐2012 ............................................................................. 13 Figure 6: Unemployment Rate by Florida County, March 2013 .......................................................................... 14 Figure 7: Jobs by Zip Code, 2011 ......................................................................................................................... 16 Figure 8: Job Concentrations All Industries 2002 and 2012 ................................................................................ 17 Figure 9: Healthcare Job Concentrations 2012 ................................................................................................... 18
Economic/Market Assessment
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List of Figures (continued)
Figure 10: Retail Job Concentrations 2012 .......................................................................................................... 19 Figure 11: Residential Submarkets ...................................................................................................................... 22 Figure 12: Share of Residential Stock Built After 2000, University Drive Submarkets ........................................ 23 Figure 13: 95th Percentile Rent, University Drive Submarkets ............................................................................ 24 Figure 14: Average Monthly Rent, University Drive Submarkets ........................................................................ 24 Figure 15: Average Office Rent, Broward County, 1st Qtr 2011‐1st Qtr 2013 ...................................................... 27 Figure 16: Class A Office Supply by Submarket, 1st Quarter 2013 ....................................................................... 28 Figure 17: Retail Submarkets Broward County ................................................................................................... 32
Economic/Market Assessment
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1.0 INTRODUCTION
W‐ZHA, LLC was retained by Kittelson and Associates to analyze the economic and market context within which University Drive functions. The purpose of this report is to inform the University Drive transportation planning process by providing an understanding of current and future market forces. Land use is primarily driven by market demand and influenced by transit. The Study’s purpose is sumarized in the following section. The Economic Framework section provides an overview of Broward County’s economy. An assessment of the residential, office and retail market follows. A social and economic profile of each municipality in the Study Area is then presented.
2.0 STUDY PURPOSE
The purpose of the Mobility Improvements Study is to identify and evaluate transit improvements in the University Drive Corridor that will provide transportation choices, improve mobility, and implement the regional vision for growth along the corridor. Investment in transit improvements along the corridor is envisioned to improve multi‐modal mobility and livability of the corridor.
3.0 ECONOMIC FRAMEWORK
Population and Households Broward County and the Fort Lauderdale Metropolitan Area share common boundaries. With a 2012 population of 1,815,137, Broward County is the second largest county in the State; second to Miami‐Dade County.
Economic/Market Assessment
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Table 1: Florida’s Most Populous Counties
Between 2000 and 2010, the Fort Lauderdale Metro/Broward County’s population grew by 8 percent. Broward County grew at a slower rate than Florida. Table 2: Population and Household Trends
The following map is from a 2011 report titled Florida: Demographics by the Florida Legislature Office of Economic Development. The map illustrates population change for all counties in Florida. In terms of real population growth, Broward County grew by more people than most of Florida’s sixty seven counties.
County 2012
Miami‐Dade County 2,551,290
Broward County 1,771,099
Palm Beach County 1,335,415
Hillsborough County 1,256,118
Orange County 1,175,941
Source: University of Florida, Bureau of Economic and
Business Research, 11/1/2012.
Florida's Most Populous Counties
April 2012
2012 pop_estimates
2000 2010 # %
Population 15,982,377 18,801,310 2,818,933 18%
Households 6,337,941 7,420,802 1,082,861 17%
2000 2010 # %
Population 1,624,691 1,748,066 123,375 8%
Households 654,939 686,047 31,108 5%
Source: Claritas, Inc.; W‐ZHA
F:\8000s, misc\81307 University Dr. Kittelson\[demo county.xls]Sheet1
Change
Florida
Ft. Lauderdale Metro/Broward County
Change
Population and Household Trends
Florida and Broward County
2000 ‐ 2010
Economic/Market Assessment
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Figure 1: Real Population Change Florida Counties, 2000-2010
Source: Florida: Demographics, Florida Legislature Office of Economic and Demographic Research
The rate of population change by county between 2000 and 2010 is illustrated on the following map. Because it is has a large population base, Broward County’s rate of population growth was relatively slow compared to many smaller Florida counties. Broward County ranked 56th among Florida’s 67 counties in the rate of population growth between 2000 and 2010.
Economic/Market Assessment
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Figure 2: Rate of Population Change Florida Counties, 2000-2010
Source: Florida: Demographics, Florida Legislature Office of Economic and Demographic Research
Economic/Market Assessment
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University Drive passes through some of the more populous municipalities in Broward County – Pembroke Pines, Miramar and Coral Springs. Table 3: Municipalities Ranked by Population
1 Fort Lauderdale 165,521
2 Pembroke Pines 154,750
3 Hollywood 140,768
4 Miramar 122,041
5 Coral Springs 121,096
6 Pompano 99,845
7 Davie 91,992
8 Plantation 84,955
9 Sunrise 84,439
10 Deerfield Beach 75,018
11 Lauderhill 66,887
12 Weston 65,333
13 Tamarac 60,427
14 Margate 53,284
15 Coconut Creek 52,909
16 Oakland Park 41,363
17 North Lauderdale 41,023
18 Hallandale Beach 37,113
19 Lauderdale Lakes 32,593
20 Dania Beach 29,639
21 Cooper City 28,547
22 Parkland 23,962
23 West Park 14,156
24 Wilton Manors 11,632
25 Lighthouse Point 10,344
26 Southwest Ranches 7,345
27 Pembroke Park 6,102
28 Lauderdale‐by‐the‐Sea 6,056
29 Hillsboro Beach 1,875
30 Sea Ranch Lakes 670
31 Lazy Lake 24
Source: Claritas, Inc.; W‐ZHA
F:\8000s, misc\81307 University Dr. Kittelson\[tables.xlsx]Sheet4
Municipalities Ranked by Population
Broward County
2010
Economic/Market Assessment
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The cities with the greatest real growth in Broward County were Miramar, Weston, Pembroke Pines, Davie and Coconut Creek. University Drive passes through three of the Broward County municipalities that experienced the greatest population growth between 2000 and 2010. While Miramar has experienced tremendous growth over the last decade, almost all of this growth has occurred west of University Drive. Table 4: Population Trends Broward County Municipalities
2000 2010 # %
Coconut Creek 44,828 52,909 8,081 18%
Cooper City 28,635 28,547 (88) 0%
Coral Springs 118,969 121,096 2,127 2%
Dania Beach 27,366 29,639 2,273 8%
Davie 81,617 91,992 10,375 13%
Deerfield Beach 74,384 75,018 634 1%
Fort Lauderdale 170,361 165,521 (4,840) ‐3%
Hallandale Beach 33,164 37,113 3,949 12%
Hillsboro Beach 2,163 1,875 (288) ‐13%
Hollywood 137,234 140,768 3,534 3%
Lauderdale‐by‐the‐Sea 6,202 6,056 (146) ‐2%
Lauderdale Lakes 30,563 32,593 2,030 7%
Lauderhill 66,582 66,887 305 0%
Lazy Lake 40 24 (16) ‐40%
Lighthouse Point 10,785 10,344 (441) ‐4%
Margate 52,200 53,284 1,084 2%
Miramar 71,268 122,041 50,773 71%
North Lauderdale 38,964 41,023 2,059 5%
Oakland Park 42,886 41,363 (1,523) ‐4%
Parkland 16,283 23,962 7,679 47%
Pembroke Park 6,817 6,102 (715) ‐10%
Pembroke Pines 139,498 154,750 15,252 11%
Plantation 83,752 84,955 1,203 1%
Pompano 98,303 99,845 1,542 2%
Sea Ranch Lakes 588 670 82 14%
Southwest Ranches 6,590 7,345 755 11%
Sunrise 87,063 84,439 (2,624) ‐3%
Tamarac 55,800 60,427 4,627 8%
West Park 13,578 14,156 578 4%
Weston 49,147 65,333 16,186 33%
Wilton Manors 12,695 11,632 (1,063) ‐8%
Ft. Lauderdale Metro/ Broward
County 1,624,691 1,748,066 123,375 8%
Source: Claritas, Inc.; W‐ZHA
F:\8000s, misc\81307 University Dr. Kittelson\[tables.xlsx]Sheet1
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Population Trends
Broward County Municipalities
2000‐2010
Economic/Market Assessment
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The map below illustrates population by census tract. The darker colored tracts are census tracts with higher population. The highest concentration of population on University Drive occurs near the I‐595 in Plantation and Davie.
Figure 3: Population by Census Tract, 2010
Source: MapInfo
Economic/Market Assessment
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Population projections generated by Claritas, Inc., a national consumer research company, indicate that population growth will continue to be strong in Miramar and Pembroke Pines through 2017. Table 5: Population Projections, Broward County Municipalities, 2010-2017
2010 2017 # %
Coconut Creek 52,909 59,144 6,235 12%
Cooper City 28,547 30,336 1,789 6%
Coral Springs 121,096 130,597 9,501 8%
Dania Beach 29,639 32,536 2,897 10%
Davie 91,992 100,735 8,743 10%
Deerfield Beach 75,018 79,997 4,979 7%
Fort Lauderdale 165,521 175,430 9,909 6%
Hallandale Beach 37,113 41,400 4,287 12%
Hillsboro Beach 1,875 1,771 (104) ‐6%
Hollywood 140,768 149,180 8,412 6%
Lauderdale‐by‐the‐Sea 6,056 6,382 326 5%
Lauderdale Lakes 32,593 34,582 1,989 6%
Lauderhill 66,887 70,944 4,057 6%
Lazy Lake 24 23 (1) ‐4%
Lighthouse Point 10,344 10,616 272 3%
Margate 53,284 56,882 3,598 7%
Miramar 122,041 144,953 22,912 19%
North Lauderdale 41,023 43,097 2,074 5%
Oakland Park 41,363 43,602 2,239 5%
Parkland 23,962 28,199 4,237 18%
Pembroke Park 6,102 6,620 518 8%
Pembroke Pines 154,750 169,149 14,399 9%
Plantation 84,955 90,971 6,016 7%
Pompano 99,845 106,126 6,281 6%
Sea Ranch Lakes 670 501 (169) ‐25%
Southwest Ranches 7,345 7,977 632 9%
Sunrise 84,439 91,507 7,068 8%
Tamarac 60,427 64,828 4,401 7%
West Park 14,156 14,491 335 2%
Weston 65,333 75,442 10,109 15%
Wilton Manors 11,632 12,290 658 6%
Ft. Lauderdale Metro/ Broward
County 1,748,066 1,897,488 123,375 8%
Source: Claritas, Inc.; W‐ZHA
Population Projecions
Broward County Municipalities
2010 ‐ 2017
Change
Economic/Market Assessment
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Income University Drive passes through six of the ten municipalities with the highest median income in Broward County. With a median income fo $91,650, Cooper City ranks 4th in the County in terms of median income. Table 6: Median Income, Broward County, 2010
Employment According to the Florida Department of Economic Opportunity, in 2012 there were over 731,000 jobs in Broward County. Jobs grew between 2000 and 2012 at a rate of 0.7 percent per year. A total of 58,100 jobs were added in the County over this timeframe. The greatest job gains occurred in the professional and business services industries and the education and healthcare industries.
Rank Muncipality
Median
Income
1 Parkland $114,651
2 Southwest Ranches $104,500
3 Weston $94,084
4 Cooper City $91,650
5 Lighthouse Point $76,106
6 Coral Springs $70,610
7 Plantation $66,740
8 Miramar $64,767
9 Pembroke Pines $61,873
10 Davie $58,313
Source: U.S. Census; W‐ZHA
E:\[tables.xlsx]Sheet9
Median Income
Broward County
2010
Economic/Market Assessment
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Table 7: Non-Agricultural Jobs by Industry, Broward County
As the following graph illustrates, the County’s job gains occurred between 2000 and 2007. The Great Recession caused many jobs to be lost between 2007 and 2010. The County’s employment has been growing since 2010.
Figure 4: Job Trends, Broward County, 2000-2012 (000’s)
Source: Florida Department of Economic Opportunity
Industry 2000 2012 Jobs % CAGRConstruction 44.2 31.9 -12.3 -27.8% -2.7%Manufacturing 38.8 25.8 -13.0 -33.5% -3.3%Wholesale Trade 38.1 45.3 7.2 18.9% 1.5%Retail Trade 100.3 100.8 0.5 0.5% 0.0%Transportation, Warehousing, and Utilities 20.5 22.6 2.1 10.2% 0.8%Information 21.1 18.1 -3.0 -14.2% -1.3%Financial Activities 54 54.4 0.4 0.7% 0.1%Professional and Business Services 93.4 122 28.6 30.6% 2.3%Education and Health Services 72.3 97 24.7 34.2% 2.5%Leisure and Hospitality 69.4 82.4 13.0 18.7% 1.4%Other Services 30.8 34.3 3.5 11.4% 0.9%Total Government 90.5 96.7 6.2 6.9% 0.6%Total Non-Agricultural Employment 673.2 731.3 58.1 8.6% 0.7%
Source: Florida Department of Economic Opportunity; W-ZHAF:\8000s, misc\81307 University Dr. Kittelson\[employment trends msa.xls]Sheet2
Change 2000-2012
Non-Agricultural Jobs By IndustryBroward County2000 and 2012
(000's)
600
620
640
660
680
700
720
740
760
780
800
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
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Most of the job losses during the recession were in the construction and financial activities industries.
Table 8: Non-Agricultural Jobs by Industry, 2000,2007, and 2012
Broward County’s unemployment rate peaked in 2010. The County’s unemployment rate was 5.7 percent as of March, 2013. Figure 5: Unemployment Rate, Broward County, 2000-2012
Source: Moody’s Analytics (2006‐2012 data); Florida Department of Economic Opportunity for March 2013 data.
Industry 2000 2007 2012 Jobs % Jobs % Jobs %Construction 44.2 59.4 31.9 15.2 34.4% -27.5 -46.3% -12.3 -28%Manufacturing 38.8 32.7 25.8 -6.1 -15.7% -6.9 -21.1% -13 -34%Wholesale Trade 38.1 47.7 45.3 9.6 25.2% -2.4 -5.0% 7.2 19%Retail Trade 100.3 104.1 100.8 3.8 3.8% -3.3 -3.2% 0.5 0%Transportation, Warehousing, and Utilities 20.5 24.6 22.6 4.1 20.0% -2.0 -8.1% 2.1 10%Information 21.1 19.2 18.1 -1.9 -9.0% -1.1 -5.7% -3 -14%Financial Activities 54 64.8 54.4 10.8 20.0% -10.4 -16.0% 0.4 1%Professional and Business Services 93.4 127.1 122 33.7 36.1% -5.1 -4.0% 28.6 31%Education and Health Services 72.3 91.4 97 19.1 26.4% 5.6 6.1% 24.7 34%Leisure and Hospitality 69.4 80.1 82.4 10.7 15.4% 2.3 2.9% 13 19%Other Services 30.8 34 34.3 3.2 10.4% 0.3 0.9% 3.5 11%Total Government 90.5 104.3 96.7 13.8 15.2% -7.6 -7.3% 6.2 7%Total Non-Agricultural Employment 673.2 789.5 731.3 116.3 17.3% -58.2 -7.4% 58.1 9%
Source: Florida Department of Economic Opportunity; W-ZHAf:\8000s, misc\81307 University Dr. Kittelson\[employment trends msa.xls]Sheet7
Change 2000-2012
Non-Agricultural Jobs By IndustryBroward County
2000, 2007 and 2012(000's)
Change 2000-2007 Change 2007-2012
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
2006 2007 2008 2009 2010 2011 2012 Mar‐13
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The following map is from the Florida Department of Economic Opportunity. As is illustrated, as of March 2013, the County had one of the lowest unemployment rates in Southern Florida.
Figure 6: Unemployment Rate by Florida County
Economic/Market Assessment
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The Florida Department of Economic Opportunity projects jobs to 2020. Broward County jobs are projected to increase by 10 percent between 2012 and 2020. This amounts to approximately 78,700 new jobs. The greatest job gains will occur in the professional and business service industries and the education and health services industries.
Table 9: Employment Projections by Industry
Industry 2012 2020 Jobs % CAGRAgriculture 860 718 -142 -16.5% -1.5%Mining 110 99 -11 -10.0% -0.9%Construction 30,417 39,006 8,589 28.2% 2.1%Manufacturing 24,824 22,531 -2,293 -9.2% -0.8%Wholesale Trade 43,844 47,244 3,400 7.8% 0.6%Retail Trade 100,204 109,942 9,738 9.7% 0.8%Transportation, Warehousing, and Utilities 21,645 21,699 54 0.2% 0.0%Information 16,928 16,845 -83 -0.5% 0.0%Financial Activities 52,711 54,545 1,834 3.5% 0.3%Professional and Business Services 122,518 144,549 22,031 18.0% 1.4%Education and Health Services 98,953 116,701 17,748 17.9% 1.4%Leisure and Hospitality 80,879 86,552 5,673 7.0% 0.6%Other Services 31,774 34,205 2,431 7.7% 0.6%Government 96,336 103,318 6,982 7.2% 0.6%Self-Employed 68,111 70,862 2,751 4.0% 0.3%Total 790,114 868,816 78,702 10.0% 0.8%
Source: Florida Department of Economic Opportunity; W-ZHAF:\8000s, misc\81307 University Dr. Kittelson\[employment trends msa.xls]Sheet3
Employment Projections By IndustryBroward County
2012 - 2020
Change 2012-2020
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County Business Patterns provides at‐place‐of‐work employment data on a zip code basis. On University Drive, the locations with the highest concentration of jobs are Plantation and Davie near the Interstate 595 interchange. Plantation has a high concentration of its jobs in the finance and professional services industries as well as retail and health care. Davie’s jobs are concentrated in retail, accommodation and food services, and education. Figure 7: Jobs by Zip Code, 2011
Source: U.S. Census Bureau; County Business Patterns
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The following map illustrates Broward County job concentrations in 2002 and 2011. Job growth has been occurring in west Broward County. Figure 8: Job Concentrations All Industries, 2002 and 2011
Source: U.S. Census, “Local Employment Dynamics Extraction Tool”
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In terms of health care employment, jobs on University Drive are concentrated in Plantation at the Westside Regional Medical Center and in Coral Springs at Broward Health Coral Springs. Figure 9: Healthcare Job Concentrations, 2011
Source: U.S. Census, “Local Employment Dynamics Extraction Tool”
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Retail employment is concentrated at the major shopping centers along University Drive. The major shopping centers on the University Drive Corridor are Westfield Broward Mall and Coral Square Mall. Sawgrass Mills and Pembroke Lakes Mall are regional retail centers that are located west of University Drive. Figure 10: Retail Job Concentrations, 2011
Source: U.S. Census, “Local Employment Dynamics Extraction Tool”
Economic/Market Assessment
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4.0 MARKET ASSESSMENT Residential Market The following table shows household trends by Broward County municipality between 2000 and 2010. Among University Drive municipalities, Miramar, Pembroke Pines and Davie grew the most. Table 10: Household Trends by Municipality
2000 2010 # %
Coconut Creek 20,705 22,754 2,049 10%
Cooper City 9,348 9,628 280 3%
Coral Springs 40,246 41,814 1,568 4%
Dania Beach 12,014 12,877 863 7%
Davie 31,906 34,315 2,409 8%
Deerfield Beach 34,197 33,370 (827) ‐2%
Fort Lauderdale 74,985 74,786 (199) 0%
Hallandale Beach 17,608 18,301 693 4%
Hillsboro Beach 1,282 1,132 (150) ‐12%
Hollywood 59,042 58,438 (604) ‐1%
Lauderdale‐by‐the‐Sea 3,609 3,595 (14) 0%
Lauderdale Lakes 11,749 11,891 142 1%
Lauderhill 25,404 24,826 (578) ‐2%
Lazy Lake 24 11 (13) ‐54%
Lighthouse Point 5,138 4,905 (233) ‐5%
Margate 21,847 21,483 (364) ‐2%
Miramar 22,647 37,420 14,773 65%
North Lauderdale 13,085 12,977 (108) ‐1%
Oakland Park 17,894 17,499 (395) ‐2%
Parkland 5,207 7,676 2,469 47%
Pembroke Park 3,027 2,488 (539) ‐18%
Pembroke Pines 52,510 56,873 4,363 8%
Plantation 33,506 34,190 684 2%
Pompano 42,454 42,182 (272) ‐1%
Sea Ranch Lakes 327 286 (41) ‐13%
Southwest Ranches 2,030 2,241 211 10%
Sunrise 33,702 32,493 (1,209) ‐4%
Tamarac 27,180 28,415 1,235 5%
West Park 4,296 4,335 39 1%
Weston 16,513 21,220 4,707 29%
Wilton Manors 5,864 6,235 371 6%
Ft. Lauderdale Metro/ Broward
County 654,939 686,047 31,108 5%
Source: U.S. Census; W‐ZHA
E:\[tables.xlsx]Sheet11
Household Trends
Broward County Municipalities
2000‐2010
Change
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Household projections generated by Claritas, Inc., a national consumer research company, indicate that household growth will continue to be strong in Miramar, Pembroke Pines and Coral Springs through 2017. Table 11: Household Projections by Municipality
2010 2017 # %
Coconut Creek 22,754 24,687 1,933 8.5%
Cooper City 9,628 10,272 644 6.7%
Coral Springs 41,814 45,025 3,211 7.7%
Dania Beach 12,877 13,902 1,025 8.0%
Davie 34,315 36,981 2,666 7.8%
Deerfield Beach 33,370 35,112 1,742 5.2%
Fort Lauderdale 74,786 80,503 5,717 7.6%
Hallandale Beach 18,301 20,099 1,798 9.8%
Hillsboro Beach 1,132 1,075 (57) ‐5.0%
Hollywood 58,438 62,336 3,898 6.7%
Lauderdale‐by‐the‐Sea 3,595 3,780 185 5.1%
Lauderdale Lakes 11,891 12,629 738 6.2%
Lauderhill 24,826 26,390 1,564 6.3%
Lazy Lake 11 13 2 18.2%
Lighthouse Point 4,905 5,110 205 4.2%
Margate 21,483 23,123 1,640 7.6%
Miramar 37,420 43,015 5,595 15.0%
North Lauderdale 12,977 13,657 680 5.2%
Oakland Park 17,499 18,380 881 5.0%
Parkland 7,676 8,839 1,163 15.2%
Pembroke Park 2,488 2,595 107 4.3%
Pembroke Pines 56,873 61,208 4,335 7.6%
Plantation 34,190 36,522 2,332 6.8%
Pompano 42,182 44,815 2,633 6.2%
Sea Ranch Lakes 286 271 (15) ‐5.2%
Southwest Ranches 2,241 2,250 9 0.4%
Sunrise 32,493 35,145 2,652 8.2%
Tamarac 28,415 29,986 1,571 5.5%
West Park 4,335 4,463 128 3.0%
Weston 21,220 23,743 2,523 11.9%
Wilton Manors 6,235 6,643 408 6.5%
Ft. Lauderdale Metro/ Broward
County 686,047 738,216 52,169 7.6%
Source: U.S. Census; Claritas, Inc.; W‐ZHA
F:\8000s, misc\81307 University Dr. Kittelson\[tables.xlsx]Sheet12
Household Projections
Broward County Municipalities
2010‐2017
Change
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The following map illustrates Broward County’s residential submarkets as defined by REIS, a national commercial real estate data provider. University Drive passes through five of the County’s eleven submarkets. These submarkets are Coral Springs/Margate, Sunrise/Tamarac, Plantation, Davie, and Miramar/Pembroke Pines. Figure 11: Residential Submarkets
Source: REIS
Economic/Market Assessment
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Among these five submarkets Miramar/Pembroke Pines has experienced the most residential development since 2000. Twenty‐nine percent of this submarkets’ residential stock was built after 2000. In the County as a whole, 16 percent of the housing stock was built since 2000. Figure 12: Share of Residential Stock Built After 2000, University Drive Submarkets
Source: REIS
Over the last three years, Plantation has absorbed the most units, with an average annual absorption of approximately 250 units. One Plantation, a 321‐unit apartment complex, was recently developed in Plantation. One Plantation commands high rents with a 750 square foot unit renting for $1,600 per month. Two other projects, the Crossroads (a 287‐unit apartment complex) and the Manor (181 rental units) are under construction in Plantation. To develop new apartments with structured parking, a developer must achieve a rent of at least $1,500 per month. High‐rise construction requires even higher rent because it is more expensive to develop. Apartment developers will seek locations that have a proven track record in achieving such rents. The following graph illustrates highest rent (95th percentile) and number of properties achieving such rent in each of the submarkets.
0%
5%
10%
15%
20%
25%
30%
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Figure 13: 95th Percentile Rent by University Drive Submarket, April 2013
Source: REIS; W‐ZHA
The following graph summarizes the average rent among REIS‐surveyed apartment complexes. The graph also indicates the number of REIS‐surveyed apartment projects in each submarket. Likely due to its newer apartment stock, the Miramar/Pembroke Pines submarket achieves the highest average rent among those submarkets on University Drive. Figure 14: Average Monthly Rent by Residential Submarket, April 2013
Source: REIS; W‐ZHA
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Given market data and household projections Miramar and Pembroke Pines have apartment development potential, however, on University Drive the opportunities are limited. There is one site on the southwest corner of University Drive and Plantation Boulevard that could be developed as apartments. Additional development on University Drive would require that existing land uses be redeveloped. Given the economics of redevelopment and the availability of land to the west of University Drive, redevelopment is unlikely over the next five to ten years. Given existing data, household projections, and existing conditions on University Drive, the locations with the most apartment development potential are in Plantation, Davie and Coral Springs. Office Market The Broward County office market is slowly recovering from the the Great Recession of 2008 and 2009. As is indicated on the following table, Broward County lost over 16,500 jobs between 2007 and 2012 in industries that typically occupy office space. Table 12: Employment Trends by Industry, 2007 - 2012
According to data from REIS, a commercial real estate data company, Broward County’s office market has had negative office absorption over the last five years. The County lost an average of 424,000 square feet of occupied office space annually over the last five years.
Industry 2007 2012 Jobs %Construction 59.4 31.9 -27.5 -46.3%Manufacturing 32.7 25.8 -6.9 -21.1%Wholesale Trade 47.7 45.3 -2.4 -5.0%Retail Trade 104.1 100.8 -3.3 -3.2%Transportation, Warehousing, and Utilities 24.6 22.6 -2.0 -8.1%Information 19.2 18.1 -1.1 -5.7%Financial Activities 64.8 54.4 -10.4 -16.0%Professional and Business Services 127.1 122 -5.1 -4.0%Education and Health Services 91.4 97 5.6 6.1%Leisure and Hospitality 80.1 82.4 2.3 2.9%Other Services 34 34.3 0.3 0.9%Total Government 104.3 96.7 -7.6 -7.3%Total Non-Agricultural Employment 789.5 731.3 -58.2 -7.4%
Office-Inclined Industries 211.1 194.5 -16.6 -7.9%
Source: Florida Department of Economic Opportunity; W-ZHAf:\8000s, misc\81307 University Dr. Kittelson\[employment trends msa.xls]Sheet7
Employment Trends By IndustryBroward County2007 and 2012
(000's)
Change 2007-2012
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Transwestern tracks the Broward County office market and publishes a market report (MarketWatch: Broward County) each quarter. According to this source, as of the 1st Quarter of 2013, there were a total of 27.8 million square feet of office space in Broward County. The County’s office supply is 18.5 percent vacant. By comparison, the Miami‐Dade County office market (43.9 million square feet) is 20 percent vacant. Table 13: Office Space and Overall Vacancy, 1st Quarter 2013
High vacancy rates have made it a buyer’s market for multi‐tenant office space. Average office rents
are lower today than they were two years ago.
Sq Ft
Overall
Vacant Sq Ft
Overall
Vacant
Urban 5,165,687 20.3%
Ft. Lauderdale Downtown 5,165,687 20.3%
Suburban 22,673,576 18.3%
Commercial Boulevard 446,741 23.4%
Cypress Creek 4,412,687 18.8%
Ft. Lauderdale Downtown 3,888,680 22.5%
Hallandale 402,042 15.8%
Hollywood 1,468,198 19.6%
NW Broward 1,484,352 27.8%
Plantation 2,904,824 18.7%
Pompano Beach 1,876,541 19.8%
Sawgrass Park 2,357,184 17.6%
SW Broward 3,432,327 14.5%
Total 27,839,263 19.6%
Source: Transwestern,"MarketWatch: Broward County 1st Qtr 2013"; W‐ZHA
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Office Space and Overall Vacancy
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1st Quarter 2013
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Figure 15: Average Office Rent, Broward County, 1st Quarter 2011 – 1st Quarter 2013
Source: Transwestern,"MarketWatch: Broward County 1st Qtr 2013"; W‐ZHA
For purposes of comparison, office space is grouped into three classes: Class A, Class B, and Class C.
Class A buildings are the most prestigious buildings competing for premier office users with rents
above average for the area. Class A buildings have high quality standard finishes, state of the art
systems, exceptional accessibility and a definite market presence.
Class B buildings compete for a wide range of users with rents in the average range for the area.
Building finishes are fair to good for the area and systems are adequate, but the building does not
compete with Class A at the same price. Class C buildings compete for tenants requiring functional
space at rents below the average for the area. Most of the office space on University Drive (with the
exception of Plantation’s office space) is Class B or C.
Half of Broward County’s office supply is classified as Class A space. Class A space is concentrated in
Downtown Ft. Lauderdale. In the suburban submarkets it is concentrated in Southwest Broward
(which is primarily Miramar), Cypress Creek, Plantation and Sawgrass Park.
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Figure 16: Class A Office Supply by Sub-Market, 1st Quarter 2013
Source: Transwestern,"MarketWatch: Broward County 1st Qtr 2013"; W‐ZHA
The Southwest Broward submarket has more Class A office space than any other suburban
submarket. Southwest Broward also commands the highest market rents among the suburban office
submarkets. The office space in the Southwest Broward submarket is concentrated to the west of
University Drive near I‐75.
Table 14: Class A Office Space Overall Vacancy and Rent by Sub-Market
0500,000
1,000,0001,500,0002,000,0002,500,0003,000,0003,500,0004,000,0004,500,000
Class A Office Sq Ft
Sq Ft
Overall
Vacant Rent
Urban
Ft. Lauderdale Downtown 4,140,391 21.7% $31.89
Suburban
Commercial Boulevard 173,768 16.4% $24.62
Cypress Creek 1,999,222 17.2% $27.01
Ft. Lauderdale Downtown 959,668 29.6% $24.33
Hallandale 0 0.0%
Hollywood 335,037 15.8% $29.72
NW Broward 594,019 37.3% $25.07
Plantation 1,663,724 19.4% $29.20
Pompano Beach 328,755 43.1% $24.24
Sawgrass Park 1,584,449 19.0% $28.42
SW Broward 2,031,849 17.2% $29.85
Total 9,670,491 21.0% $27.79
Source: Transwestern,"MarketWatch: Broward County 1st Qtr 2013"; W‐ZHA
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Broward County Submarkets
1st Quarter 2013
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Plantation and Coral Springs are the only places where there is a concentration of office within walking distance of University Drive. Plantation contains the most office space directly adjacent to University Drive. Approximately 19 percent of Plantation’s Class A office space is vacant. According to data from the Coral Springs Economic Development Foundation there are approximately 890,000 square feet of office space on University Drive. This space is 45 percent vacant. Many of the office buildings are within the boundaries of the City’s Community Redevelopment Area. There are opportunities for office infill in Coral Springs.
Table 15: Office Buildings on University Drive in Coral Springs
Industries whose employees tend to occupy office space include the information industry, the financial activities industry and the professional and business services industry. The State projects that County employment in these industries will grow significantly (over 12 percent) between 2012 and 2020.
Building Location Sq Ft % Vacant
Coral Springs Executive Tower 210 N University 80,593 22%
Bank of America 1401 N University 48,459 55%
Stonegate Bank Plaza 1750 N University 42,806 43%
SunTrust Center 1890 N Unviersity 28,000 54%
BB&T Bank Plaza 1999 N University 53,634 20%
Tower of Coral Springs I & II 2825 & 2855 N University 75,305 18%
Preferred Exchange Tower 3111 N University 203,056 70%
Coral Springs Financial Plaza 3300 N University 145,364 55%
One Charter Place 3301 N University 80,489 50%
Regions Cetner 2425 N University 13,405 40%
Univ. Center at the Walk 2700 N University 84,000 30%
1700 Building 1700 N University 31,487 22%
Total 886,598 45%
Source: Coral Springs Economic Development Foundation
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Table 16: Employment Projections by Industry
At 230 square feet per employee, job growth in office‐inclined industries will generate demand for approximately 5.7 million square feet. Assuming that the office market is stabilized at an occupancy rate of 93 percent, there is the potential that the market can support approximately 2 million of new office space. The most competitive locations for new office development are Downtown, the corporate parks on the west side of County and Plantation. In the near term, however, most of the market activity will be tenants moving into vacant space in existing buildings.
Table 17: Net New Office Space Development Potential 2020
Industry 2012 2020 Jobs %Agriculture 860 718 -142 -16.5%Mining 110 99 -11 -10.0%Construction 30,417 39,006 8,589 28.2%Manufacturing 24,824 22,531 -2,293 -9.2%Wholesale Trade 43,844 47,244 3,400 7.8%Retail Trade 100,204 109,942 9,738 9.7%Transportation, Warehousing, and Utilities 21,645 21,699 54 0.2%Information 16,928 16,845 -83 -0.5%Financial Activities 52,711 54,545 1,834 3.5%Professional and Business Services 122,518 144,549 22,031 18.0%Education and Health Services 98,953 116,701 17,748 17.9%Leisure and Hospitality 80,879 86,552 5,673 7.0%Other Services 31,774 34,205 2,431 7.7%Government 96,336 103,318 6,982 7.2%Self-Employed 68,111 70,862 2,751 4.0%Total 790,114 868,816 78,702 10.0%
Office-Inclined Employment 192,157 215,939 23,782 12.4%
Source: Florida Department of Economic Opportunity; W-ZHAf:\8000s, misc\81307 University Dr. Kittelson\[employment trends msa.xls]Sheet9
Employment Projections By IndustryBroward County
2012 - 2020
Change 2012-2020
New Office-Inclined Jobs 23,780Office Space /Sq Ft 230Office Demand 5,469,400
Excess Vacant Space @ 93% Stabilization 3,507,700Net New Office Development Potential 1,961,700
New Office Development PotentialBroward County
2012 - 2020
Source: Florida Department of Economic Opportunity; W-ZHA
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Retail Market Retail Principles Agglomeration Economies Retail typically clusters to allow consumers to conduct a multi‐purpose trip (grocery anchored shopping center) and/or to comparison shop (regional mall). Clustering allows individual retailers to increase their trade area and capture. Retail developers and stores typically seek sites that are already shopping destinations. It is far more challenging to attract retail tenants to locations where there is little or no existing retail activity. Store Categories
Low Order Goods/Services Stores: A low order good or service is something people buy on a regular daily basis. Convenience stores like food stores and pharmacies are low order stores and they are typically found in neighborhood centers. Because consumers patronize these types of stores often, these types of stores have smaller trade areas (5‐ to 10‐minute drive time) and require fewer households to support them. Low order stores seek locations that are very convenient to their target markets. Because they are so local, the trade area for a neighborhood store must realistically reflect social and cultural boundaries. Grocery stores and pharmacies are low order store anchors. These stores typically attract other store‐types that deal with day‐to‐day needs (banks, take‐out food, hardware, barber shop/nail salon/beauty parlor, etc.). The location benefits from this retail agglomeration because it becomes even more convenient as only one shopping trip can fulfill multiple purposes. Moderate Order Goods Stores: Moderate order stores sell goods and services that you buy on a weekly or monthly basis. Good examples of moderate‐order stores are Marshalls, Petco, and small department stores. These types of stores have larger trade areas (10‐ to 15‐minute drive time) than convenience stores, so locations with strong access are particularly important to these types of stores. These stores are typically found in community centers and/or big box power centers. High Order Stores: These stores sell a good or a service bought only occasionally, like furniture, computers and jewelry. These types of stores seek locations that are accessible to a large number of households. Their trade areas are significantly larger (15‐ to 20‐minute drive time) than low and moderate order stores. These types of stores tend to cluster as high order shoppers typically seek centers with sufficient depth and breadth of merchandise to comparison shop. As such, these types of stores are either found in large regional malls or specialty retail centers.
Existing Retail Landscape High Order Store Locations: Specialty and Regional Shopping Centers There are four enclosed, regional malls in Broward County: Westfield Broward Shopping Mall (Plantation), Sawgrass Mills (Sunrise), Coral Square (Coral Springs), and Pembroke Lakes (Pembroke Pines). Two of these malls, Westfield Broward and Coral Square are on University Drive. The other
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two malls are within a 10‐minute drive of University Drive. Residents residing in the vicinity of University Drive have plenty of shopping destinations available to them. Low and Moderate Order Store Locations: Neighborhood and Community Shopping Centers Terranova Corporation is a commercial real estate advisory firm serving South Florida. Terranova produces an annual retail market report for Broward County and its submarkets. The Terranova market report excludes enclosed malls and lifestyle centers (non‐enclosed regional shopping centers). According to Terranova’s market report for 2012, there are ten retail submarkets in Broward County: Miramar/Pembroke Pines, Hollywood/Hallandale, Davie/Weston, Dania/S. Fort Lauderdale, Coral Springs/Margate, Plantation, Tamarac/Sunrise, Lauderdale Lakes, Oakland Park/N. Fort Lauderdale, and Pompano Beach/Deerfield Beach. University Drive passes through five of the ten submarkets.
Figure 17: Retail Submarkets Broward County, 2012
Source: Terranova Corporation; W‐ZHA
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There are a total of 37.25 million square feet of retail in Broward County, 11 percent of this space is vacant. There are 25.5 million square feet of retail in the five University Drive submarkets; these five submarkets contain approximately 70 percent of the County’s retail. Retail in these submarkets is 12.8 percent vacant.
Table 18: Non-Regional Shopping Center Supply
University Drive has an average traffic count in excess of 50,000 vehicles per day. As such, University Drive is a prime location for retail stores that serve the day‐to‐day needs of nearby residents. These “convenience”‐type stores (food, pharmacy, eat/drink, and general merchandise) are present all along the University Drive corridor.
In terms of retail potential, it is likely that new development on University Drive will be primarily convenience and community‐oriented stores. Stores like Marshalls, RadioShack, grocery stores, drug stores, fitness centers, and fast food will locate on University Drive. First order stores will locate in, or adjacent to, the existing regional shopping centers/nodes that are easily accessed from University Drive.
Centers Sq Ft Vacancy Avg Rent
Coral Springs/Margate 52 6,857,700 17.5% $18.46
Pembroke Pines/Miramar 40 6,552,200 8.5% $23.42
Tamarac/Sunrise 48 5,466,500 15.1% $16.79
Davie/Weston 33 4,454,100 8.9% $22.88
Pompano Beach/Deerfield Beach 24 2,912,500 9.5% $20.03
Dania/S. Fort Lauderdale 15 2,800,600 3.9% $25.32
Lauderdale Lakes 12 2,214,100 10.8% $16.06
Plantation 16 2,189,000 13.3% $24.49
Oakland Park/N. Fort Lauderdale 16 1,986,000 9.7% $22.42
Hollywood/Hallandale 15 1,820,200 6.4% $23.29
Broward County 271 37,253,000 11.2% $21.39
University Drive Submarkets 189 25,519,500 12.8% na
Source: Terranova Corporation, "Broward County Retail Report: 2012"; W‐ZHA
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Non‐Regional Shopping Center Supply
Broward County and Submarkets
2012
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