The overall vacancy rate went up slightly, 0.5 of a percentage point to 10%, compared with a year earlier. Airport West, the county's biggest submarket, also saw an increase in vacancy to 13.5%, up one percentage point since a year earlier.

On the other hand, as the only submarket to see its vacancy fall from a year ago, the North Central Dade submarket is performing "exceptionally well," according to the report. The vacancy rate fell 1.8 percentage points to 5.3% at mid-year. Furthermore, demand for space resulted in a rental rate hike of 10 cents per sf to $5.57 per sf gross for warehouse/distribution space.Also, according to the report, available sublease space in the county decreased by 30%; the average asking rental rate for warehouse/distribution space fell 33 cents per sf to $6.05 per sf gross from the end of the second quarter 2002 to a year later; and year-to-date direct absorption in the county was a negative 905,141 sf at the end of the second quarter.

In the second half of the year, the Miami-Dade industrial market should improve, with an increased demand for space and healthy leasing activity, the report states.