Market Statistics for Miami Industrial Real Estate - Q3 2017
Activity for leasing and sales of Industrial space in Miami picked dup speed in the third quarter 2017. Net absorption of warehouse space was for this quarter was 174,347 Sq. Ft., an increase from the second quarter 2017 but a decrease from the third quarter 2016. The chart below shows amounts and changes. Vacancy rate remained unchanged from last quarter at 4.1%, compared to 3.9% in the third quarter of 2016. Although leasing activity picked up, the increase in inventory in previous quarters seems to have an impact in the vacancy rate. Despite this, vacancy for warehouse space still among one of the lowest Miami’s industrial real estate market has seen in over 10 years.
Delivery of new construction slowed during this quarter. Only four buildings were delivered, totaling 578,075 Sq. Ft; a significant decrease from 1,112,150 Sq.Ft. delivered in the second quarter 2017 but an increase from 241,212 in the third quarter 2016. Helped by the new construction, the total inventory of industrial space in Miami stands at 239,295,532 Sq. Ft. on 8,902 buildings. Coming down the pipeline, there are 2,951,607 Sq. Ft. of industrial space under construction.
Sales of industrial buildings in had a robust performance in the third quarter. There were 32 industrial sales with a volume of $298,600,828 totaling 2,683,852 Sq. Ft. This is a significant increase from the second quarter 2017 where there was a volume of $151,313,400 on 1,757,760 Sq.Ft. Also an increase over the third quarter 2016 where the volume $141,825,000 for a total of 1,7,709,624 Sq. Ft.
The last quarter of the year is usually the strong. Leasing should increase and companies sign leases before year end. Sales should remain strong as inventory of buildings continues to be low, pushing prices higher. As a reference, the fourth quarter of 2016 had a low vacancy rate of 3.7% and absorption of 480,811 Sq. Ft.
Until next quarter, feel free contact us any questions on Miami’s Industrial Market. We are the Miami Industrial Team. 786-433-2380.