Amid a surge in industrial development in northern Miami-Dade County, East Capital Partners broke ground on a spec warehouse at 16300 N.W. 97th Ave in Hialeah. The developer acquired the mostly vacant property for $12.95 million in 2022 after filing for rezoning earlier that year.
Even though a spate of new construction in 2023 brought a record 413 million SF of industrial space to market, it is expected that abundant supply will be short-lived. The most active occupiers of the space were general retailers and wholesalers, which accounted for 36% of all lease transactions.
The 85,138-square-foot industrial complex with eight narrow buildings near Medley sold for $17.5 million. The property last traded for $2.97 million in 2009.
Those in industrial CRE are keeping up with foreign exchange issues and the current strength of the dollar, which can be as important as monitoring interest rates. Understanding manufacturing and the global flow of goods means having a grasp of how the relative dominance of a given currency can affect who can afford to make products based on their location.
Prologis acknowledges that while operating conditions are healthy in the majority of their markets, customers are remaining focused on controlling costs, which is weighing on decision making and the pace of leasing. High interest rates and mounting geopolitical concerns are also factors that are contributing to this hesitancy but the effect of this indecision on net absorption is expected to be short-term.