From an investor’s perspective, small bay properties have notable advantages. They attract a wide variety of tenants, typically on short leases of three to five years, allowing landlords the flexibility to adjust rents frequently and providing some inflation protection.
Absorption turning negative doesn’t tell the whole story. The underlying Miami-Dade industrial market fundamentals remain strong, with Class A industrial properties seeing peak vacancy rates due to recent completions.
According to a new report from global investment management firm Colliers, big-box industrial product attracted the lion’s share of the record demand in response to the pandemic, and is largely what developers have been building during the ongoing cycle.
Food distribution company Quirch Foods has a lease signed through 2042 with two renewal options for 10 years each. The deal breaks down to $337 per square foot for the 176,699-square-foot building completed in 2021.
After a period of rising vacancies and subdued rent growth, the world’s largest warehouse owner and developer expects to ramp up property acquisitions in the coming months in a bet that industrial real estate demand will accelerate next year.