Market Statistics for Miami Industrial Real Estate - Q3 2018
The industrial market in Miami continues its strong performance in the third quarter of 2018. The absorption for this quarter was similar to that of 2Q, net space absorbed was 1,383,043 Sq.Ft. Just a little below the 1,470,070 Sq.Ft. in 2Q 2018 but much higher than the 174,347 Sq.Ft. in 3Q 2017. The chart below illustrates the amounts for all the quarters. As expected, the strong absorption in these two quarters, pushed the vacancy rate down to 3.80%. A decrease from 4.10% in the 2Q 2018 and 3Q 2017. This trend of low vacancy has continued despite the large number of new construction projects delivered and in the pipeline. This strong demand for warehouse space here in Miami has pushed lease rates now to an average of $10.59/Sq.Ft. The highest number in over a decade!
Developers delivered a strong amount of new warehouse space during the 3Q 2018. A total of 1,332,445 Sq.Ft. over 8 buildings were delivered in the quarter. This is very similar to the 1,431,182 Sq.Ft. delivered in the 2Q 2018 but lower than the 578,075 Sq.Ft. delivered in the 3Q 2017. As a result of all this new construction, the total inventory of warehouse space in Miami stands at 242,828,846 Sq.Ft. with a total of 8,935 buildings. Despite all this new construction being delivered, there are still 5,434,126 Sq.Ft. under construction.
Sales for industrial buildings in Miami kept with leasing activity. For this quarter, there were 36 industrial sales with a record-breaking volume of $388,992,300 totaling 2,771,246 Sq. Ft. The average sale price for this quarter jumped to $140.37/SF. This strong activity highlights the appetite from investors and user for industrial buildings in Miami.
As the national economy exhibits robust growth, Miami has capitalized on this growth. More companies relocating and expanding in the state means more demand for warehouse space. 4Q 2018 should be a strong one. As a reference, 4Q 2017 showed 4.00% vacancy rate with 373,017 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.