The investment climate for industrial real estate is also suffering, brokers say. "REITs and institutional investors are not paying the same numbers as when the market had record breaking rental rates and higher occupancy," says Silver. CBRE also reports a 50% decrease in transactions in Miami-Dade, despite resilient market fundamentals.

[IMGCAP(2)]"There is not the eagerness that there was a year ago," says Jay Ziv, senior vice president with Colliers Abood Wood-Fay in Miami. "There's been a softening of the institutional players in the market, and there's a decompression of cap rates that directly effects the purchasing of investment properties."

Looking ahead, South Florida could see a number of sale-leasebacks, following a national trend of firms working to add liquidity, C&W reports. The firm cites Seagis Property Group's purchase of 89,290 sf of manufacturing space for approximately $8.1 million from Doormark, Inc., who will remain in the building as the tenant, as an example.

In addition, market reports says land constraint and rising construction costs will place limits on the number of projects breaking ground through the rest of 2008. However, there is a trend of land returning to industrial use after residential projects get abandoned, says Silver.

Despite the overall residential downturn effects, brokers point toward South Florida's international trade market as a constant insulation for the area. A rise in port exports keeps demand steady, says Audley Bosch, associate director with C&W in Miami. Trade agreements that are becoming more lenient with Latin American and Caribbean countries greatly benefit South Florida, he says, adding that future foreign investment into American logistics companies will follow. "The seaport and the airport are driving the logistics and freight forwarding market in a positive trend," says Bosch.