Market Statistics for Miami Industrial Real Estate - Q3 2016
The Miami’s Industrial Real Estate Market continued roaring during this third quarter 2016. The net absorption of warehouses space was 922,053 Sq. Ft. up from 537,437 Sq.Ft. in the second quarter and 706,060 Sq. Ft. in the third quarter of 2015. This is the strongest absorption since the second quarter of 2015. The chart below shows the changes. The trend of lower vacancy continued during this quarter. Vacancy rate for the third quarter declined to 3.9% from 4.4% in the second quarter and, 4.7% in the third quarter of 2015. This is the lowest vacancy Miami’s industrial real estate market has seen in 10 years.
Delivery of new construction slowed during this third quarter. Three buildings totaling 241,212 Sq.Ft. were delivered; down from 727,024 Sq.Ft. delivered in the second quarter and 580,955 Sq. Ft. in the third quarter 2016. The addition of new buildings increased the total inventory of industrial space in Miami to 235,511,543 Sq. Ft. on 8,886 buildings. New construction of industrial space increased substantially to 4,359,280 Sq.Ft. at the end of the third quarter, up from 2,397,088 Sq.Ft. in the second quarter. Reaching all-time high.
Sales figures showed robust activity. Third quarter reported 38 building sales at a volume of $141,825,000, totaling 1,709,624 Sq.Ft. This represents an increase from the second quarter where 33 buildings sold at a volume of $90,583,000 on 1,047,769 Sq.Ft. However, it’s down from the third quarter of 2015, where 43 buildings sold at a volume of $193,694,335 on 1,862,317 Sq.Ft. The decrease in sales activity can be attributed to the low inventory of buildings along with the record high prices.
The last quarter of the year is usually the strongest quarter. Last year, the fourth quarter experienced a net absorption of 901,957 Sq. Ft. and 22 building sales with a volume of $61,787,900.
Until next quarter, feel free contact us any questions on Miami’s Industrial Market. We are the Miami Industrial Team. 786-433-2380.