Industrial Market Thriving on High Demand, Limited New Supply
South Florida’s tight industrial real estate market is setting records as demand rises without much new in the pipeline
- More than 11.5 million SF of industrial space in South Florida was leased in 2017, pushing down vacancy rates and strengthening the industrial real estate market.
- With higher rents for stores, retailers hold some of their products in nearby warehouses to significantly reduce their store square footage — and in turn their total rent, said Easton, who also is chairman and chief executive officer of Easton Group.
- More than 7 million SF was leased in Miami-Dade County — the best year since 2011, according to a Cushman & Wakefield 2017 market reports. In Broward County, leasing hit more than 2.9 million square feet for warehouse distribution space, and in Palm Beach County, about 1.6 million square feet was leased.
- The market is expected to remain strong, and Miami-Dade rents are expected to rise even with new supply coming online and temporarily pushing up vacancies.
- Airport West area is now the biggest industrial center in Miami-Dade, according to Jose Juncadella, co-founder, principal and broker for commercial real estate agency Fairchild Partners Inc. in Coral Gables. “It has close to 60 million square feet of industrial space. Then the Medley and Hialeah markets (are next) with about 40 million square feet,” he said.