Fruitful, Strong, Favorable Describe This Miami Sector

Avison’s Wayne Schuchts says it appears as though it will remain brisk for the next 12 months.

MIAMI—Miami-Dade’s economy is strong, as demonstrated by the sustained decline in the unemployment rate, which stood at 4.8% as of February 2016—a 50-bps drop from the previous year. That’s one of the takeaways from Avison Young ‘s Spring 2016 North America and UK Industrial Market Report. The Miami metropolitan area is the largest job creator within South Florida and, along with Fort Lauderdale, has accounted for roughly one-third of all new jobs created in the state of Florida since 2010, the report reveals. And South Florida ranks among the top US markets targeted for new industrial construction projects, due in large part to a thriving construction industry and its corresponding warehousing requirements, along with strong trade with Latin America. “South Florida industrial continues to be a fruitful market mirroring overall domestic markets,” Wayne Schuchts, a principal with Avison Young, tells GlobeSt.com. “Decreases in unemployment and vacancy coupled with increases in rent and net absorption have positively impacted the region. Land remains at a premium, becoming more expensive as it is relatively scarce.” Schuchts notes that 4.6 million square feet of absorption in Miami-Dade County is strong. With approximately 225 million square feet of total inventory in Miami-Dade and 110 million square feet in Broward, he calculates, Dade County’s absorption is nearly four times more than Broward and Palm Beach and nearly double the relative absorption. “The large unemployment drop in Broward County from 5.3% to 4.4% year-over-year as of February 2016 is likely an indicator of pent-up demand,” Schuchts says. “Broward’s vacancy rate of 7.1% vacancy lags behind Dade and Palm Beach.” Further north, Palm Beach County is still witnessing “very favorable” economic dynamics. As developers continue to chance land opportunities, he notes, a few developers such as Duke Realty and McCraney Property Company are well positioned . Schuchts’ conclusion: “In spite of the potential of a weakening dollar or a rise in interest rates, the overall South Florida industrial sector—which is being revitalized by online fulfillment enterprises—appears as though it will remain brisk for the next 12 months.