At the midyear mark for 2018, South Florida’s industrial sector continued expanding in order to stay ahead of robust demand. The explosion of eCommerce and new-to-market tenants has investors and developers on the hunt to capitalize on the market’s momentum, as they key in on developing in areas with speedy distribution channels. Despite the new product coming on line, the strong demand has kept industrial vacancy rates low throughout the market. Some other factors shaping the market include:
- Compared to the last cycle (2006/2007), the amount of new product being delivered to the market is up by 17.2%, while the vacancy rate is 600 bps below.
- Developers and investors have been attracted to North Central Dade as a prime area for development due to its central location between Miami-Dade and Broward County, as well its proximity to the intersection of South Florida’s four most traveled highways (I-95, Florida’s Turnpike, FL-826, U.S. Route 441), making it ideal for speedy distribution.
- Most of the preleasing in product can be seen in Central Broward where vacancy rates for warehouse/distribution product is at a low of 2.0%.
- The lack of available land in Palm Beach makes it more difficult for investors and developers to build. Due to the lack of new inventory, the vacancy rate in Palm Beach stays well below both Broward County and Miami-Dade County.
See the graphic below for a by-the-numbers breakdown of industrial space in South Florida’s six largest submarkets. Download a PDF with more information here.
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