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.
Prologis acknowledges that while operating conditions are healthy in the majority of their markets, customers are remaining focused on controlling costs, which is weighing on decision making and the pace of leasing. High interest rates and mounting geopolitical concerns are also factors that are contributing to this hesitancy but the effect of this indecision on net absorption is expected to be short-term.
According to Green Street’s latest industrial sector update, the eport authors point to cold storage demand, rising NOI forecasts and cash-releasing spreads — especially at Prologis — and Houston and East Coast port activity.
In half of the top 10 U.S. logistics warehousing markets, spec vacancy rates are around the national average of 4.4 percent while net asking rent growth is 7.8 percent annually, Those trends are what developers like to see. CLICK ON THE HEADLINE FOR MORE