The Real Deal Miami

Here’s how much industrial land prices have increased in South Florida since 2013

Land is the most expensive in Broward, but prices have risen at a faster clip in Miami-Dade
By Amanda Rabines | July 06, 2018 10:30AM

An industrial warehouse (Credit: Max Pixel)

The cost of building new warehouses has been rising in South Florida thanks in part to a dwindling and more expensive supply of land.

Land prices have skyrocketed in recent years, up 106 percent this year in Broward County to about $1.2 million per acre since 2013, according to research analyzed by Colliers International South Florida. In Miami-Dade, industrial development sites are trading for about $940,000 per acre, up more than three times the $297,000 per acre that land was selling for in 2013.

Colliers looked at land sales for industrial use that sold for $2.5 million and up.

Land is the most expensive in Broward, but prices have increased at a faster clip in Miami-Dade, according to the research. In Palm Beach, the cost of industrial land grew at a slower pace over the five-year timeline. In 2018, developers paid about $304,000 per acre, compared to the $209,000 per-acre cost in 2013. And land prices in Palm Beach County actually peaked in 2017, when sales averaged about $556,000 per acre.

Here’s the breakdown from 2013 to 2018:

Active players in Broward include Bridge Development Partners, which paid $12.3 million for 40 acres of land in Pompano Beach in November. There, the firm is planning a 467,000-square-foot industrial park. The trade broke down to $307,500 per acre.