Sometimes the basics don’t always paint the full picture.
For instance, JLL’s fourth-quarter market report for Miami-Dade County’s industrial sector revealed a negative net absorption of -483,906 square feet for the last three months of 2024. On top of that, the vacancy rate rose by 110 basis points to 5%, and over seven million square feet of new space was delivered, which JLL describes as an “abundant” supply.
“For the first time since 2020, the influx of new supply has outpaced absorption,” the commercial real estate firm noted.
While these indicators might seem concerning, the broader context tells a different story. JLL emphasizes that the “underlying market fundamentals” remain “strong,” with Class A industrial properties seeing “peak vacancy rates” due to recent completions. Additionally, net absorption for the year as a whole remained positive, totaling about 1.18 billion square feet.
The fourth quarter also saw some significant deals. SteelCorp Factory signed the largest lease, securing 164,080 square feet at Flagler Station, followed by Double Ace Cargo’s 148,618-square-foot deal at Miami International Commerce Center. In sales, The Easton Group made the largest acquisition, purchasing the Northwest Dade Logistics Center for approximately $58.29 million.
JLL’s outlook for the Miami-Dade industrial market is mixed. While the future of vacancy rates is uncertain and expected to “fluctuate,” the firm predicts continued institutional investment and steady rent growth. Rents averaged $16.07 per square foot in the fourth quarter.
“Miami’s economic growth is driven by its strategic location, providing access to global trade routes through Miami International Airport and the Port of Miami,” JLL concluded.