Market Statistics for Miami Industrial Real Estate - Q1 2017
Miami’s industrial real estate market had a strong start in the first quarter of 2017; both in sales and leasing. The net absorption of warehouse space was 602, 988 Sq. Ft., higher than the fourth quarter 2016 and the first quarter of 2016. The chart below shows amounts and changes. However, the vacancy rate increase to 3.9%, compared to 3.7% in the fourth quarter 2016 but lower than the 4.5% in the first quarter 2016. The light increase in vacancy is due to the delivery of new spaces to the market. This is still one of the lowest vacancies Miami’s industrial real estate market has seen in 10 years.
Delivery of new construction greatly increased in the first quarter. A total of eight buildings were delivered, totaling 1,362,652 Sq. Ft; up from 214,057 Sq.Ft. delivered in the fourth quarter 2016 and 406,362 Sq. ft. in the first quarter of 2016. The amount of the new space delivered is more than the previous three quarters combined. The addition of new buildings increased the total inventory of industrial space in Miami to 237,355,544 Sq. Ft. on 8,897 buildings. There were still 3,352,986 Sq. Ft. of industrial space under construction in the first quarter, a decrease off the record 4,359,280 Sq. Ft. in the third quarter 2016.
First Quarter 2017 continued the strong number for sales of industrial buildings. During the quarter there were 27 industrial sales with a volume of $275,062,100, totaling 1,775,493 Sq. Ft. This is a light decrease from the fourth quarter 2016 where there was a volume of $320,569,000 on 1,928,518 Sq.Ft. Also up from the first quarter 2016 where 22 building sold with a volume of $61,787,900 for a total of 1,123,071 Sq. Ft.
The second quarter is expected to continue seeing strong number; however, lower than the previous two quarters. As a reference, the second quarter of 2016 had a vacancy rate of 4.4% and absorption of 537,437 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.