The flood of warehouse space in Miami has been met by steady demand for new facilities fueled by positive demographic growth and robust port activity, long-term trends that bode well for future growth.
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.
Despite headwinds, this soaring niche continues to attract an increasing number of investors. Industry experts expect substantial growth to continue, driven by increasing demand and need for temperature-controlled storage and transportation of food, pharmaceuticals and chemicals.
The first quarter findings show the South Florida industrial market remains on a stable trajectory, as demand continues to outpace supply. Companies keep wanting to take industrial space. Population growth and other factors all seem to be pointing in a positive direction.
Although e-commerce-fueled bulk logistics space is the darling of the current cycle, manufacturing stimulates industrial space demand for both factories and warehouses. Investors seeking higher cap rates are finding them in industrial spaces serving manufacturing. CLICK ON THE HEADLINE FOR MORE