With low vacancy rates, lots of demand and a growing supply of new buildings, the industrial market seems to show no signs of slowing down, as South Florida becomes an increasingly attractive destination for commerce, according to a recent report by CBRE.
Vacancy rates in Miami-Dade held steady at 3.6 percent in the first quarter, as companies signed new leases and absorbed new space. Most of the leasing activity occurred in Miami Lakes (729,526 square feet), followed by Airport/Doral (103,456 square feet), and Medley (57,276 square feet), according to the report.
Due to low vacancy rates, rents rose on a year-over-year basis. Miami-Dade’s industrial market had an average asking rate of $9.14 per square foot in the first quarter, up 3.6 percent compared to the same period of 2017, according to CBRE. More than 108 leases were signed totaling 1.8 million square feet, with an average lease size of 16,500 square feet, the report shows.
Overall sales for Miami-Dade’s industrial market amounted to $78 million in the most recent quarter with 15 transactions for a total of 553,000 square feet. The average sale price per square foot was $141, and the average deal size was 36,900 square feet. Nearly half of these transactions took place in the Airport/Doral submarket, which totaled $37 million in sales. Central Dade followed with 25 percent of total transactions and $20 million in sales.
And as demand increased for industrial space, so did supply. Four buildings were delivered in the first quarter, totaling 1.1 million square feet of new industrial space. Countyline Corporate Park delivered three buildings in Miami Lakes. One of the buildings is leased by CGI Windows (325,000 square feet) and the other by KLX Aerospace Solutions (540,000 square feet), which moved in during the first quarter. CBRE says Miami-Dade’s industrial space will only see more demand in the future.
“As new, quality space is being offered at higher rates and the positive absorption of available properties continues, asking rents are expected to reach new peaks,” the report said.
