After several years of almost no new industrial construction in Miami-Dade County, more than 1.2 million square feet of industrial space is now in development, World Property Channel reported. Although that number is still well below the approximately 3 million square feet of industrial space added annually in the county before the crash, the market appears to be recovering.
Miami-Dade will need several million square feet of new industrial space within the next three years to accommodate growing businesses, projections from commercial brokerage CBRE show.
“Most of the activity you see now was driven by the economic recovery and the fact that Miami is an outstanding distribution market driven by Latin America,” Mike Ruen, managing director of developer DCT Industrial, told World Property Channel. “Any benefit from the Panama Canal would be a bonus.” The canal is being expanded and should double capacity by 2015, which will undoubtedly bolster shipping and related businesses in the Miami area, according to published reports.
The Airport West and Medley submarkets, near Miami International Airport are the most active spots for industrial development in the county. Ground was broken on the 125-acre Miami International Tradeport in Medley earlier this year. The building is scheduled to be completed next fall.
The market’s resurgence has also caused prices to surge. Near the market’s peak, land in Airport West was selling for $20 to $23 per square foot; prices have rebounded to about $15 to $18 per square foot, per numbers from CBRE.
“As the absorption of space continues, rental rates are expected to go above $10 per square foot, which is where they were at the peak of the market in 2007,” said Michael Silver, vice president at CBRE. [World Property Channel] —Evan Bleier