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.
When it comes to the Doral’s commercial market, it has certainly experienced significant growth and development over the past several years. The main driver for that has been the access to highways to Miami International Airport, as well as access to Port of Miami making it an ideal hub when it comes to business.
In 2023, Amazon increased the number of items delivered same day or overnight by nearly 70% year-over-year. The experience was so positive for customers that the online retail giant is planning to double the number of their same-day delivery facilities.
Location, transportation access and available labor are key for all tenants. Beyond that, wishlists will vary depending on what the company makes or distributes. But still, trends can be observed.
The CoStar Group, pinpoints mid-2025 as when US industrial net absorption will pick up notably. Some tenants will seek to take advantage of a softer rental market to expand their footprint this year.