Much of the new sublease inventory for Miami industrial industrial space is coming from companies tied to the housing industry, including furniture, appliance and building-material suppliers.
The South—particularly the Southeast—is the fastest-growing manufacturing area. Over the past decade, the South has added more than 100 million square feet of new manufacturing space, and nearly half of all the space under construction in the U.S. is now in the South.
According to Newmark’s Road Work Ahead report, though overall industrial market growth correlates with infrastructure investment, and will continue to do so on a national level, not all markets will see similar levels of growth in the coming years.
Over the past 4 years, 100 million square feet of small-bay industrial space has been added to the market, according to Newmark’s first-quarter U.S. Industrial Market Conditions and Trends report. The small bay segment is increasingly attractive to investors because it provides diversification in tenancy and therefore cash flow, as well as greater tenant management and fewer credit tenants.
According to Newmark’s National Industrial Market Conditions and Trends Report, there will be continued resilience but on a muted scale for industrial assets in 2024. Unpredictability in the global supply chain will drive long-term demand for industrial space due to the need for diversified sourcing and ports of entry,