Photo:Beacon Lakes Industrial Park in Miami
Industrious: Miami-Dade's industrial real estate sector is among the nation's most in-demand
The county’s industrial real estate market is among the nation’s hottest.
Miami-Dade has more than 157.2 million square feet of industrial real estate — warehouses, distribution space, manufacturing and what’s known as “flex” or “office service” space, which is mostly buildings that include showrooms or warehouses with some offices.
During the second quarter alone, 947,000 square feet of new industrial space became available in five new buildings, and another 2.4 million square feet is under construction.
Cushman & Wakefield says the county’s industrial market benefited from expansion of employment in transportation, warehousing and utilities, as well as the rapidly diminishing supply of developable land.
Investors like what they see: During the second quarter, some 3 million square feet of industrial property changed hands.
|How Miami Compares: Industrial Real Estate Growth, 2010-16|
|Market||Net Absorption||Rent Growth|
|Miami-Dade||20.4 million sf||35.2%|
|Metro Seattle||20.8 million sf||2.3%|
|Northern New Jersey||11.5 million sf||16.6%|
|Metro Oakland||13.4 million sf||0.6%|
|Source: JLL Research|
|How Miami Compares: At the End of 2016|
|Market||Asking Average Rent||Vacancy Rate||Under Construction|
|Miami-Dade||$6.83/sf||3.9%||4.1 million sf|
|Metro Seattle||$6.40/sf||4.5%||1.8 million sf|
|Northern New Jersey||$9.00/sf||2.5%||2.8 million sf|
|Metro Oakland||$6.77/sf||1.6%||3.0 million sf|
|Source: JLL Research|
Industrial Snapshot (2Q 2017)
- 5% Vacancy
- 5.8% Historical average vacancy
- 52,590 sf Net absorption (total square feet entering the market minus total square feet being leased
- $8.13/sf Average asking rent
- 12.5% Increase in average asking rent from a year earlier
- 2.1 million sf Total warehouse/distribution leases signed, the most that’s been leased in any quarter since 2011
- 850,000 sf Largest lease deal, signed by Amazon
Source: Cushman & Wakefield Marketbeat Miami- Dade, Industrial Second Quarter 2017
Since 2010, demand for industrial space has outpaced supply in Miami- Dade more quickly than in comparable markets; rent growth has, too. According to real estate brokerage and research firm JLL, Miami-Dade’s strong GDP growth, population growth and the growth of e-commerce worldwide are the main drivers of demand. JLL measures industrial real estate differently from Cushman & Wakefield, noting 183 million square feet of industrial space in the county.