South Florida Industrial Levels Out

(Crystal Proenza is associate editor of Real EstateFlorida.)

MIAMI-During the first quarter of 2008, the South Florida industrial real estate market has experienced an increase in vacancy rates and stabilizing rents. However, market reports and experts say the region is just experiencing equalization after 2007 saw rising rents, sometimes in the double digits, and record-low vacancy rates under 5%. Rising fuel costs are also putting a strain on the industrial market, making it more expensive to operate commercial vehicles.

In Miami-Dade County, the current vacancy rate is 6.3%, which is higher than last year, but still below the statewide average of 6.5%, according to research by Cushman & Wakefield of Florida. Meanwhile, a first-quarter report by CB Richard Ellis points to an increase in sublease space in the region, offering more leasing opportunities than at any time in the last four years.