Industrial vacancy rates lowest in decades: report

About one third of spec construction is preleased

Jul.July 15, 2015 09:45 AM

Strong demand, low vacancy rates and spec construction are among the takeaways of Transwestern’s Q2 Miami Industrial Report, The Real Deal has learned.

Vacancy rates continued declining to 5.4 percent, the lowest in a decade, according to the report. In the 11 Miami submarkets the report included, the airport submarket reported 6.3 percent vacancy and Medley was at 3.7 percent.

In those submarkets, a combined more than 700,000 square feet of new product is under construction, and one third of that is pre-leased, according to the report. Transwestern used internal data as well as CoStar, and included inventory of buildings of 20,000 square feet or more.

Spec construction is exciting and new to our market,”  Ben Eisenberg, senior managing director at Transwestern, told TRD. “International logistics firms and distributors are looking for more modern Class A builders with higher ceilings.”

High demand, coupled with the rezoning of industrial areas such as Doral and Wynwood, will lead to new construction replacing older buildings, he said.

East Miami had the highest rents per square foot at $15. South central Miami followed at $12.22, and behind that was southwest Dade at $12.09 per square foot.

“You’re seeing industrial zoned land turn into multifamily, which is raising prices,” Eisenberg said.

Related Articles

South Florida Logistics Center

JPMorgan buys Amazon-leased warehouse next to Miami International Airport

14900 Northwest 22nd Court with Jonathan De La Rosa and Ben Silver

Opa-Locka warehouse near Amazon distribution center sells amid rising demand

Daniel Crann and Timothy Peterson (Credit: iStock)

Movers & Shakers: Colliers taps development services head, Altman promotes COO & more

Stephen A. Schwarzman and 8482 Northwest 96th Street (Credit: Google Maps)

Blackstone buys 9-acre industrial site in Medley

Darius Adamczyk and 9315 Northwest 112 Avenue

Honeywell sells Medley industrial building to Leo Ghitis

The top three industrial sales from April

Here are South Florida’s top industrial sales in April

Easton & Associates president Jose Hernandez-Solaun and rendering of Interglass Corporation's new location

New industrial development in Hialeah Gardens breaks ground

Clarion Partners sells massive industrial properties in Weston