MIAMI—The tide is rising for Miami industrial. But some submarkets are carving out niches worth noting.
GlobeSt.com caught up with Ernesto Cambo, principal of cpf investment group, developer of AVE Aviation & Commerce, to get his thoughts on the market in part two of this exclusive interview. You can still read part one: If You Build for This Niche Market, They Will Come.
GlobeSt.com: Land prices in South Florida, particularly, are sky rocketing. Do you believe that this is a predicament for the industrial real estate as much as it is for other sectors?
Cambo: Land rates have dramatically spiraled, constraining supply for industrial land in prime locations. Those with land allocated for business park expansions and spec product will have control to further compress rates.
Institutional land buyers will not feel the pinch quite like private developers looking to still have their skin in the game. This squeeze is in effect within Miami-Dade County's industrial zone with the most available land, west of I-75 and north of NW 138th Street. This activity is pushing against the county's Urban Development Boundary (UDB).
GlobeSt.com: The industrial submarket of Opa-Locka appears to be a magnet for e-commerce giants like Amazon. Are there other local submarkets where industrial will see flourishment in the third and fourth quarter of 2017?
Cambo: Globally, the Internet has sparked a recent boom in coworking space and telecommuting. E-commerce is driving demand for shipments and increased warehouse space.
These dynamics create anticipation for more industrial product compared to office space. As a result, the industrial sector will see further positive net absorption in Miami-Dade County.
Hialeah Gardens up to the county line will be a prime zone in the latter quarters of 2017 due to land availability. Miami Lakes, Airport West, Hialeah, and Medley are amongst the top submarkets with the highest development, and recent lease transactions and spec activity further solidify the strength of these areas.
Florida's industrial real estate market continues evolving. Get all the details.
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