MIAMI—A total of nearly 3.6 million square feet of new industrial space was delivered to Miami-Dade County's inventory during 2017, more than double the completions in 2016. Despite the new deliveries, overall industrial vacancy decreased to 4.6% at the close of the fourth quarter 2017.
That's according to Transwestern's fourth-quarter 2017 Miami industrial market report. The firm predicts the number of new developments coupled with healthy absorption of approximately 1.75 million square feet in 2017 allows Miami to remain one of the nation's tightest industrial markets.
“Miami's unemployment rate has fallen to its lowest level in a decade with job growth seen in international trade, tourism, service sectors, and construction,” Walter Byrd, Transwestern senior managing director, tells GlobeSt.com. “International cargo through Miami International Airport is expected to post its strongest year in 2017, and another strong year is expected with the slow rebound of Latin American economies in 2018. Most of Miami's industrial submarkets boast vacancy in the low single digits, including Hialeah at 3.8 percent and Miami Airport at 3.7%.”
(Here are four of the most active industrial submarkets in South Florida right now. And find out how this dream mall will complicate industrial development in Miami.)
In addition to the strong deliveries in 2017, another 3.3 million square feet is under construction, 58% of which is already leased. In addition to the new construction in the Miami Airport and Medley submarkets, large projects in the North Central Dade/Gratigny area (North Miami Beach submarket) are now underway led by a 1 million-square-foot building for Amazon.
“In 2017, industrial absorption in Miami continued at a torrid pace as demand for new space remains strong,” says Byrd. “Continued organic growth and new-to-market companies fueled the market in 2017 and will absorb much of the new product in 2018, keeping vacancies tight and resulting in steady rent growth.”
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
