February 01, 2018
Miami – A total of nearly 3.6 million square feet of new industrial space was delivered to Miami-Dade County’s inventory during 2017, more than double the completions in 2016. Despite the new deliveries, overall industrial vacancy decreased to 4.6 percent at the close of the fourth quarter 2017. According to Transwestern’s fourth-quarter 2017 Miami industrial market report, the number of new developments coupled with healthy absorption of approximately 1.75 million square feet in 2017 allows Miami to remain one of the nation’s tightest industrial markets.
“In 2017, industrial absorption in Miami continued at a torrid pace as demand for new space remains strong,” said Walter Byrd, Transwestern Senior Managing Director. “Continued organic growth and new-to-market companies fueled the market in 2017 and will absorb much of the new product in 2018,keeping vacancies tight and resulting in steady rent growth.”
In addition to the strong deliveries in 2017, another 3.3 million square feet is under construction, 58 percent of which is already leased. In addition to the new construction in the Miami Airport and Medley submarkets, large projects in the North Central Dade/Gratigny area (North Miami Beach submarket) are now underway led by a 1 million-square-foot building for Amazon.
Fourth-quarter average asking rental rates in Miami-Dade were $9.60 per square foot, down slightly from the third quarter, but are expected to continue long-term steady growth.
Additional highlights from Transwestern’s fourth-quarter 2017 Miami industrial report include:
Miami’s unemployment rate has fallen to its lowest level in a decade with job growth seen in international trade, tourism, service sectors, and construction.
International cargo through Miami International Airport is expected to post its strongest year in 2017, and another strong year is expected with the slow rebound of Latin American economies in 2018.
Most of Miami’s industrial submarkets boast vacancy in the low single digits, including Hialeah at 3.8 percent and Miami Airport at 3.7 percent.
Download the full report at: https://tinyurl.com/transwestern-mia-4Q2017Industr.
Transwestern is a privately held real estate firm of collaborative entrepreneurs who deliver a higher level of personalized service – the Transwestern Experience. Specializing in Agency Leasing, Tenant Advisory, Capital Markets, Asset Services and Research, our fully integrated global enterprise adds value for investors, owners and occupiers of all commercial property types. We leverage market insights and operational expertise from members of the Transwestern family of companies specializing in development, real estate investment management and research. Based in Houston, Transwestern has 35 U.S. offices and assists clients through more than 180 offices in 37 countries as part of a strategic alliance with BNP Paribas Real Estate. Experience Extraordinary at transwestern.com and @Transwestern. For updates from the Southeast region, follow @TranswesternSE.