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Year-over-Year Change
are taking up modern space at a speedy clip, encouraging growth in the local
industrial sector. Rising tenant demand has brought the vacancy rate down 700 3%
basis points since the 2009 high as net absorption has consistently outstripped
new supply. This has prompted substantial double-digit increases to the asking 2%
rent the last two years, fueling the need for more space in the market. Devel-
1%
opers are responding this year with the addition of 1.5 million square feet of
industrial space, concentrating primarily on the Miami Airport and North Miami 0%
Beach submarkets. Ease of access to major travel routes, the growing Port of 13 14 15 16 17*
Miami and the Miami Airport provides these areas with the framework that Class
A warehouse users are seeking. As such, leasing competition will be strong in
Industrial Supply and Demand
2017, supporting another year of solid rent improvements and contributing to a
Completions Absorption Vacancy
vacancy rate that is set to reach a new low.
6.0 8%
Vacancy Rate
4.5 6%
omy is fueling investor interest in the dynamic industrial market, holding deal flow
near the five-year average in 2016, moderately inhibited by a shortage of prop- 3.0 4%
erties on the market. Buyers have been most active in the Miami, Medley and
Hialeah areas, submarkets that have led the county in leasing activity as tenants 1.5 2%
demand newer, up-to-date properties. Elevated competition for high function-
ing assets brought the market average cap rate to low-6 percent territory, still 0 0%
13 14 15 16 17*
producing sturdy income growth due to upper-single-digit rent gains this year.
Limited availability of existing core assets is shifting strategy of some investors to
pre-sales, favoring a commitment on development. With pricing in some areas Asking Rent Trends
surpassing the replacement cost, this trend is likely to rise in the future. Metro United States
24%
Year-over-Year Change
Construction The Miami Airport and North Miami Beach areas claim
3.5 Million sq. ft. the most new industrial space this year. Last year, Mi- Sales Trends
ami-Dade registered an influx of 1.3 million square feet,
primarily in the Medley community.
Average Price per Square Foot
$180
$60
Rent A recent surge in the rental rate brings the average ask-
up 13.3% ing rent to $11.24 per square foot this year, a 52 percent
$20
climb from 2013. 13 14 15 16 17**
23