Market Statistics for Miami Industrial Real Estate - Q3 2015
The Industrial Real Estate in Miami continues its strong growth. At the end of the third quarter, the vacancy rate decreased to 4.7%, down from 4.9% in the second quarter and 5.7% in the third quarter of 2014. This low vacancy rate is one of the lowest in the last ten years and is one of the lowest in the country. Currently, the national vacancy rate for industrial space stands at 6.6%
The lease activity showed its strength with a net positive absorption of 706,060 Sq. Ft. This represent a higher demand than what was delivered during this quarter. Approximately, 580,955 Sq. Ft. of new construction were delivered in this third quarter. These figures justify the building boom that has taken place on the industrial real estate market in Miami. The decrease in the vacancy rate also continues to push asking lease rates higher. This quarter, the average lease rate stood at $8.77/ Sq. Ft. an increase of 1.6%, $8.63/Sq. Ft., from the second quarter. The second table shows the top lease transactions in the third quarter of 2015.
The delivery of the new construction added to the current inventory of industrial space in Miami. As of the third quarter of this year, the total amount of industrial space in Miami stood at 232,505,539 Sq. Ft. in 8,857 buildings.
Sales were also robust in this quarter. Total sales amounted to $193,694,335 in 43 buildings and a total of 1,862,317 Sq. Ft. This represents an average price of $104.01/Sq. Ft. which is an increase from the $94.75 seen in the second quarter. These higher sale prices have pushed cap rates down to 6.48%, compared to 7.47% seen at the same time last year. The third table shows the largest sale transactions for this last quarter.
Going into the fourth quarter, we see a continued strength of the industrial market. The new product being built, including South Florida Logistics and Flagler Station Phase III, will be absorbed. However 2016 will be interesting as there will be a higher number of new spaces being delivered than the space being absorbed.
For more information and other market statistics, contact the Miami Industrial Team at 786-433-2380.