Institutional investors flock to South Florida’s industrial market: Q3 reports

Vacancy rates in Miami-Dade County fell to 3.8%

TRD MIAMI /
Oct.October 23, 2018 05:30 PM

Medley Palmetto Industrial Park (Credit: iStock)

South Florida’s industrial market continued to remain one of the area’s best performing asset classes in the third quarter of 2018, thanks in part to growing demand from institutional investors.

In Miami-Dade County, vacancy rates fell to 3.8 percent from 4 percent on a year-over-year basis. Amid an influx of new industrial space, asking rental rates declined to $9.95 per square foot, a 3.8 percent decrease from the same period of last year, according to a Colliers International South Florida third quarter report.

In Broward, vacancy rates rose to 3.9 percent from 3.7 percent from the third quarter of 2017, Colliers’ report showed. Warehouse and distribution rental rates decreased slightly and currently average $8.04 per square foot.

In Palm Beach, vacancy rates held steady at 3.1 percent and have remained stable year-over-year, while rental rates have increased by 7 percent to $8.82 from $8.51.

Developers and investors are increasingly seeing South Florida’s industrial market as a strong investment opportunity due to e-commerce, the area’s lack of available land and growing population, according to the report.

Over the past five years, average prices per square foot for warehouse buildings in South Florida have increased by 65 percent, according to Colliers.

Institutional investors are driving demand, having acquired nearly $340 million of industrial assets in South Florida so far this year, representing 23 percent of total buyers, according to Colliers.

Highlighting this trend, TA Realty recently purchased a nine-property portfolio from Cofe Properties for $92.3 million or $99 per square foot. The portfolio totaled 932,516 square feet and included properties in Hialeah Gardens and Medley.

Blackstone Group also acquired an industrial portfolio of 82 properties, including seven properties in Miami Gardens totaling 657,011 square feet and equating to $82.9 million or $126 per square foot.


Related Articles

arrow_forward_ios
Matt Rieger and a rendering of Paradise Lake Apartments

Developer scores financing for West Kendall affordable housing project

Wynwood 25 and Wynwood Annex with Jon Paul Perez and Jonathon Yormak (Credit: East End Capital/Related Group)

Related, East End score $136M refi of Wynwood projects

The property and Jonathan Salk (Credit: Google Maps)

Liberty Property Trust sells Fort Lauderdale industrial buildings

These real estate power players are involved in 2019’s juiciest lawsuits (Credit: Getty Images)

Here are South Florida’s juiciest lawsuits of 2019

Clockwise from top left: 3400 Northwest 74th Avenue, the Opa-locka industrial property and Centergate at Gratigny (Credit: Google Maps)

Here are South Florida’s largest industrial sales of 2019

5601 Northwest 72nd Avenue (Credit: Google Maps)

These were South Florida’s biggest industrial leases of 2019

Fordome Investment Group’s Kris Rodriguez and Blackstone’s Stephen Schwarzman (Credit: Getty Images, Google Maps)

Blackstone plans to build new Medley warehouse

Best of TRD 2019 promo

Coming soon: The Real Deal’s Best of 2019

arrow_forward_ios
Loading...