Market Statistics for Miami Industrial Real Estate - Q2 2018
This was another strong quarter for leasing and sales of industrial buildings in Miami. Second quarter 2018 saw an astonishing net absorption of 1,470,070 Sq.Ft. This is a huge increase compared to only 10,422 Sq. Ft. in the 1Q 2018 and 90,992 Sq.F.t in the 2Q 2017. The chart below shows amounts and changes. This large absorption pushed the vacancy rate down to 4.10% during this quarter. A decrease from 4.30% in the 1Q 2018 and constant from 2Q 2017 at 4.1%. The vacancy rate has remined below 4.5% since the 2Q 2016 and continues to be in records levels over ten years. As expected, the strong demand for warehouse space here in Miami has pushed rates now to an average of $10.30/Sq.Ft.
New construction kept its strong performance this quarter. Space delivered totaled, 1,434,182 Sq. Ft. An increase from the 858,120 Sq.Ft. delivered in 1Q 2017 and 1,112,150 Sq.Ft. delivered in the 2Q 2017. After all this new construction, the total inventory of industrial space in Miami stands at 241,274,359 Sq.Ft. with a total of 8,922 buildings. At the end of the quarter, there were 4,320,603 Sq. Ft. of industrial space under construction.
Sales of industrial buildings in Miami kept its strong upwards trend. For the second quarter 2018 there were 21 industrial sales with a volume of $100,555,850 totaling 968,425 Sq. Ft. This represent a slight decrease from the 1Q 2018 where there was a volume of $152,771,100 on 1,480,324 Sq.Ft. Also, a significant decrease from 2Q of 2017 where there was a volume of $298,600,828 on 2,683,852 Sq.Ft. The average sale price for this quarter was $103.83/SF.
This strong performance during the second quarter shows demand for industrial space in Miami continues. New construction and existing space are being absorbed; this has helped fuel the growth in leasing and kept vacancy rates low. The increase is sales prices shows there still a lack of inventory available for sale. 3Q 2018 is expected to show continuous growth. As a reference, 3Q 2017 showed 4.10% vacancy rate with 174,347 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.