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

Vacancy rates in Miami-Dade County fell to 3.8%

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
G6 Hospitality CEO Rob Palleschi and the Motel 6 at 825 East Dania Beach Boulevard (LinkedIn, Google Maps)
Blackstone sells five South Florida budget hotels for $61M
Blackstone sells five South Florida budget hotels for $61M
1600 Northeast 12th Terrace
Triangle Services pays $17.5M for Fort Lauderdale industrial building
Triangle Services pays $17.5M for Fort Lauderdale industrial building
Link Logistics' Luke Petherbridge with 115.7-acre site at 21001 Northwest 27th Avenue (LinkedIn, Google Maps)
Blackstone’s Link Logistics pays $291M for Calder’s horse racing track
Blackstone’s Link Logistics pays $291M for Calder’s horse racing track
EverWest Real Estate Investors' Rick Stone and Tyler Williams; rendering of the newly built industrial property at 10900 Northwest 146th Street in Hialeah Gardens (Commercial Property Group, EverWest Real Estate Investors, iStock)
EverWest buys Hialeah Gardens industrial building for $43M
EverWest buys Hialeah Gardens industrial building for $43M
First Industrial Realty's Peter E. Baccile with 1801 North Andrews Avenue (First Industrial Realty Trust, Colliers, iStock)
First Industrial picks up Pompano Beach manufacturing facility for $25M
First Industrial picks up Pompano Beach manufacturing facility for $25M
Hollywood Locations' Christopher Ursitti and 1400 Northwest 31st Avenue (Hollywood Locations, Google Maps)
Movie studio complex may rise on former incinerator site in Fort Lauderdale
Movie studio complex may rise on former incinerator site in Fort Lauderdale
RFR's Aby Rosen with 100 Biscayne, RFR, Lease Roundup
Lease roundup: Fintech firm moves HQ to Aby Rosen’s 100 Biscayne in Miami
Lease roundup: Fintech firm moves HQ to Aby Rosen’s 100 Biscayne in Miami
SROA Capital's Ben Macfarland III with 000 Pembroke Road (LinkedIn, Loopnet)
SROA Capital pays $20M for Hallandale Beach industrial-flex property
SROA Capital pays $20M for Hallandale Beach industrial-flex property
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...