Industrial Activity Strong in Miami with Limited Supply
In 2015, Miami has been one of the strongest markets in the country for industrial real estate, due in large part to a land supply constraints. In Miami Dade, vacancy for this type of space was 3.4% at the end of 2015. As of January, available space declined 7.2% in January from three months prior, and square footage was down 8% year over year with a total of 208.6 million square feet available. The 10% decline of industrial listings YOY further demonstrate strong demand in the market.
Demand for industrial space in Miami Dade is expected to continue. “Businesses are growing, employment is rising and more companies are moving to the area” explains Keith Darby, President of RISE Realty.
There are plans for a new 1.8 million sq feet of industrial space in Miami Dade to help balance supply and demand. Doral and Wynwood areas area being rezoned, which will enable new construction to replace older buildings in the area.
When supply is low, and demand high, prices of course increase. YOY, sales prices for industrial spaces increased 8%. As of January, rental rates are averaging over $11 annually per square foot. East Miami, South Central Miami and South West Dade areas are the most expensive areas for space rents.
When entering the Miami Industrial market, or looking to change buildings, businesses need to be strategic. RISE Realty can help navigate supply constraints and negotiate favorable terms. Contact us today!