Market Statistics for Miami Industrial Real Estate - Q1 2018

Lease and sales of industrial space in Miami continued to be strong; although net absorption declined from the last quarters. First quarter 2018 saw a net absorption of only, 10,422 Sq.Ft. This compared to 373,017 Sq. Ft. in the 4Q 2017 and 602,988 Sq. F.t in the 1Q 2017. The chart below shows amounts and changes. Due to less absorption, the vacancy rate increase to 4.30% during this quarter. An increase over the 4.00% in the 4Q 2017 and 3.90% in the 1Q 2017. Despite the increase in the vacancy rate, this rate still one of the lowest in the country and among the lowest in the last 10 years for Miami. This increase didn’t put pressure on lease rate, which actually increased to $10.01/Sq.Ft.  

Delivery of new buildings came strong in this first quarter. Space delivered totaled, 858,120 Sq. Ft. This is a significant increase from the 248,395 Sq.Ft. delivered in 4Q 2017. But a slight decrease from the 1,362,652 Sq.Ft. delivered in the 1Q 2017. All these new buildings helped increase the total inventory of industrial space in Miami to 240,204,097 Sq.Ft. with a total of 8,919 buildings. Going into next quarter, there are 4,681,682 Sq. Ft. of industrial space under construction.   

 

Sales of industrial buildings had a strong performance, although lower than previous quarters. For the first quarter 2018 there were 28 industrial sales with a volume of $152,771,100 totaling 1,480,324 Sq. Ft. This represent a decrease from the fourth quarter 2017 where there was a volume of $180,010,100 on 2,193,048 Sq.Ft. But similar to first quarter of 2017 where there was a volume of $1,513,134 on 1,757,760SF.  

 

This first quarter, although it was slower that other quarters, still showed growth in the leasing and sales of warehouse space. All the new construction might put pressure on the lease rates and vacancy but it’ll still be a strong market. Also, sale prices will go up as most of new construction is only for lease. Second quarter 2018 should see the further strengthening. As a reference, 2Q 2017 showed 4.10% vacancy rate with 90,992 Sq. Ft. Net Absorption.   

 

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

Market Statistics Q1 2018

Vacancy Rate

Market Lease Absorption (SF)

Rental Rate ($/SF)

New Space Delivered

Total Inventory (SF)

Total Buildings

Average Sale Price ($/SF)

Cap Rate

1.30%

10,422

$10.01

858,120

240,204,097

8,919

$103.20

6.75%

 

 

 

 

 

 

 

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786-433-2380

Top Leases Q1 2018

Tenant

Nestle Wafers

GRM Information

Kuehne & Nagel

Tropical Foods

HardTen

Address

8501 NW 80th St

15081 NW 49th Ave

10701 NW 140th St

1665 NW 102nd Ave

3360 NW 110th St

Size (SF)

257,074

142,656

109,075

64,000

47,500

 

 

 

 

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Top Sales Q1 2018

Buyer

JP Morgan Chase

GnB Partners

EMC Windows

BanaCol Corp

Ronaldo Delgado

Address

3200 NW 67 Ave B7

 

3201 NW 116th St

 

3661 NW 74th St

 

1130 NW 159th Dr

 

3965 E 10th Ct

Size (SF)

168,693

 

77,500

 

48,212

 

47,000

 

42,713

Sale Price

$29,930,900

 

$5,950,000

 

$4,000,000

 

$4,295,700

 

$2,071,254

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Miami, FL  33166

 

Doral, FL  33172​

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