Florida’s industrial markets see increase in spec construction: report
More than 10M sf of industrial space is under construction in Florida, with Miami-Dade second behind Jacksonville
Industrial markets throughout Florida are experiencing a return to pre-recession occupancy levels and rental rates, according to a newly released Cushman & Wakefield report.
Statewide, second quarter rents stood at $7.03, with occupancy at 95.1 percent. Year-to-date, industrial absorption increased to about 3.7 million, according to the report.
More than 10 million square feet of industrial space is under construction in Florida. Jacksonville has the largest share, with about 3.3 million square feet being delivered, according to the report. Miami-Dade comes in second with about 2.4 million square feet, while Broward has 1 million square feet. Palm Beach County is delivering about 300,000 square feet, according to the report.
Speculative industrial development is also on the rise in Miami-Dade, Broward and Palm Beach counties, outpacing built-to-suit development for the first time since 2009.
Palm Beach saw a significant increase with 18 percent of industrial construction built-to-suit and 82 percent speculative, according to the report. Broward was similar, with 20 percent of industrial construction built-to-suit and 80 percent speculative. Miami-Dade’s industrial construction was 45 percent built-to-suit and 55 percent speculative, according to the report.
With limited supply across the state, researchers predict lower absorption figures in upcoming quarters. The trade-off will come with a strong increase in rental rates, as new vacant space comes online in the near term, the report says.
In March of last year, Amazon signed a lease with Flagler Global Logistics for an 117,235-square-foot warehouse at 3200 Northwest 67th Avenue near Miami International Airport. Recently, Amazon surpassed that deal by announcing it signed a lease for a third distribution center inside an 800,000-square-foot warehouse at Miami-Opa Locka Executive Airport.
In another notable deal, Prologis bought a 343,553-square-foot industrial building in Opa-Locka for $25.75 million. Seagis Property Group also fully leased its 174,024-square-foot Doral Logistics Center when it rented the remaining 88,680-square-feet to an aircraft supply company. And the 5-million-square-foot Miramar Park of Commerce added 150,000 square feet of new leases, renewals and extensions.