Leasing of Industrial space in Miami cratered during the second quarter 2017; sales activity remained steady. The net absorption of warehouse space was 92,992 Sq. Ft., a very significant drop from the first quarter 2017 and the second quarter 2016. The chart below shows amounts and changes. As a result, vacancy rate increased to 4.1%, compared to 3.9% in the first quarter 2016 but lower than the 4.4% in the second quarter 2017. The drop in absorption could be attributed to a slower demand for leasing combined with an increase in inventory of new space warehouse space available. Nevertheless, the vacancy still among one of the lowest Miami’s industrial real estate market has seen in over 10 years.

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Delivery of new construction continued strongly in the second quarter. A total of seven buildings were delivered, totaling 1,112,150 Sq. Ft; a small drop from 1,362,652 Sq.Ft. delivered in the first quarter 2017 and 727,024 Sq. ft. in the second quarter of 2017. After these new deliveries, the total inventory of industrial space in Miami stands at 238,020,245 Sq. Ft. on 8,894 buildings. For the rest of the year there are 2,920,550 Sq. Ft. of industrial space under construction in the first quarter. 

Sales of industrial buildings in Miami remained steady during the second quarter. During the quarter there were 25 industrial sales with a volume of $151,313,400 totaling 1,757,760 Sq. Ft. This is a light decrease from the first quarter 2016 where there was a volume of $275,062,100 on 1,775,493 Sq.Ft. However; it’s an increase from the second quarter 2016 where 33 building sold with a volume of $90,583,000 for a total of 1,047,760 Sq. Ft. 

For the third quarter, leasing activity should increase al landlords increase incentives for tenants. Sales should remain strong as inventory of buildings continues to be low, pushing prices higher. As a reference, the third quarter of 2016 had a vacancy rate of 3.9% and absorption of 922,053 Sq. Ft.   

Until next quarter, feel free contact us any questions on Miami’s Industrial Market. We are the Miami Industrial Team. 786-433-2380.