Sale closes at peak pricing of $353 per square foot despite challenging office market conditions

Weston, Fla. – Avison Young’s Florida Capital Markets Group completed the $9 million sale of a three-story, ±25,482-square-foot, multi-tenant office building at 1040 Weston Road in Weston, Florida. The $353-per-square-foot transaction far surpassed the current $225-per-square-foot market average for office investment sales. 

Avison Young Principals David Duckworth; John K. Crotty, CCIM; Michael T. Fay, Managing Director of the firm’s Miami operations;; and Brian C. de la Fé represented Shaked 21, LLC in the disposition. The team previously sold the building to Shaked 21, LLC in 2020 and worked alongside their Principal, Sagi Shaked.

“Despite increased interest rates and restricted financing options currently hampering investment activity, we successfully closed the 1040 Weston sale at peak pricing,” said Duckworth. “This transaction shows that the well-located, high-performing assets in the market are still seeing continued buyer demand at strong pricing amidst market challenges.”

At 90.8% occupied, the building boasts an impressive and stable rent roll that includes the S&P A+ credit-rated Chase Bank and is comprised of 57% medical office tenants. With excellent frontage on the well-trafficked Weston Road in a high-demographic area, the property has a steady history of high occupancy, making it a low-risk investment. The buyer plans to occupy a portion of the building while enjoying cash flow from rental income.

“We’ve observed that banks are aggressively providing debt for owner-occupied assets but are extremely selective when it comes to investment properties,” said Crotty. “Despite all of the challenges in the market, our team is finding creative solutions and getting deals done.”

According to Avison Young insights, Broward County’s office market demonstrated a strong performance in 2023, surpassing 3.2 million square feet of leasing activity. Average asking rents continued to increase, reaching $38.34 per square foot, full-service. Additionally, the market showed resilience amid prolonged economic challenges and achieved a positive annual net absorption of 14,156 square feet. The Southwest Broward submarket, which includes Weston, posted the lowest total office vacancy rate in Broward County at 12.7%.