Although certain asset classes may see isolated trouble, the broader industrial market in Miami appears resilient, with no signs of systemic weakness. The occupancy has slipped slightly from about 98% to 95% but points to a more balanced market.
Trade tariffs may lead to inflation and recession, as seen in the past, with profound effects on the construction sector, impacting both costs and demand. And immigration policies that induce fear among workers could worsen the ongoing labor shortages in construction, making it harder to recruit and retain skilled labor.
Florida’s industrial market is showing signs of stability from Jacksonville to Miami. Moving into 2025, the effects of economic shifts are shaping a unique business landscape, creating a more predictable environment for development. With the tension between supply and demand easing, business leaders are growing more optimistic.
As evidenced by Prologis Research’s U.S. Industrial Business Indicator, a post-pandemic building boom is coming to an end, with only 46 million square feet of speculative projects breaking ground in Q2. This will leave customers with dwindling options in many locations and size categories.