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.