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Industrial Space Absorption Keeps Pace with Construction Surge

CORAL GABLES, FL-South Florida's nearly 265 million-sf industrial market absorbed 7.9 million sf of space in this year's first six months, versus nine million sf in all of last year, reports locally-based Codina Group Inc. That was a strong enough performance to hold vacancies at a stable 6%. The vacancy rate actually fell between the first and second quarters in all three of the region's counties.

By Harold Kelman | Updated on September 01, 2000

Led by Miami-Dade, which accounts for more than 75% of the tri-county inventory of manufacturing, warehouse/distribution and office/service space, the South Florida industrial market is “flourishing,” says Eric D. Swanson, executive vice president of Codina Group, whose research team compiled the data

The Airport West submarket alone accounted for 1.98 million sf of Miami-Dade’s total 5.1 million-sf first-half absorption. Yet it still ended the six-month period with the highest vacancy rate (8.9%) of any submarket.

Responding to solid user demand, developers had 4.3 million sf of new industrial product under construction in the county at mid-year, with 855,888 sf more in some stage of planning. That level of new building may have been a factor in holding Miami-Dade’s average gross psf rental rate of $5.92 below the regional average of $6.25.

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