Miami Industrial Vacancies Tick Up As Tenants Find Value In Lower Quality Properties

Miami’s industrial real estate market showed mixed signals in the second quarter, according to a new report from Avison Young.

The overall vacancy rate edged up to 6%, a 40-basis-point increase from a year ago. Interestingly, the highest vacancy was in Class A properties, which reached 13%. In contrast, Class B and C assets remained much more stable, with average vacancy rates of 4.3% and 3.5%, respectively.

“Class B and C vacancy rates have remained remarkably stable, holding below 5%, as tenants increasingly prioritize value over newly built assets in today’s rate-sensitive environment,” Avison Young noted in the report.

The rise in overall vacancy is largely due to an influx of new development. Over 2 million square feet of industrial space is currently under construction—outpacing net absorption by more than 1.6 million square feet.

Still, there are signs of resilience in the market. Demand remained positive for the second consecutive quarter and improved over Q1. Rental rates also continued to climb, rising 97 basis points year-over-year to reach $17.38 per square foot—the fourth straight quarter of rent growth.

“Strong pricing dynamics are returning in the most strategic locations, where the market is consolidating around proven assets. Strategic scarcity, not scale, has become the lever for sustained pricing power,” the report stated.

Construction activity has slowed significantly from the peak seen in 2021–2022, when new development topped 7 million square feet.

Among the quarter’s most notable transactions, CEVA Freight renewed its lease on a 364,608-square-foot facility—the largest industrial lease in Miami during Q2. Amazon followed with a 235,850-square-foot lease, while Walton & Post signed for 179,652 square feet. The biggest sale was Envision Cold’s $47.25 million purchase of the property at 2900 NW 75th Street.

Source: GlobeSt.