Market Statistics for Miami Industrial Real Estate - Q4 2016
Another great quarter for Miami’s Industrial Real Estate Market. The net absorption of warehouses space was 480, 811 Sq. Ft., continuing the trend from the three quarters of 2016. The chart below shows the changes. The trend of lower vacancy continued during this quarter. Vacancy rate for the fourth quarter declined to 3.7% from 3.9% in the third quarter and, 4.7% in the fourth quarter of 2015. This is the lowest vacancy Miami’s industrial real estate market has seen in 10 years.
New construction picked up in fourth quarter of 2016. Three buildings totaling 314,057 Sq.Ft. were delivered; up from 241,212 Sq.Ft. delivered in the third quarter and down from 459,805 Sq. ft. in the fourth quarter of 2015. The addition of new buildings increased the total inventory of industrial space in Miami to 235,773,330 Sq. Ft. on 8,890 buildings. New construction of industrial buildings reached 3,386,807 Sq. Ft. in the fourth quarter, a small decrease from a record 4,359,280 Sq. Ft. in the third quarter.
Fourth quarter is usually the strongest quarter for sales activity; this quarter wasn’t any different. Fourth quarter reported 26 building sales at a volume of $320,569,000, totaling 1,928,518 Sq.Ft. This represents an increase from the third quarter where there was a volume of $141,825,100 on 1,709,624 Sq.Ft. Also up from the fourth quarter in 2015 where 22 building sold with a volume of $61,787,900 for a total of 1,123,071 Sq. Ft.
For the first quarter of 2017 we expect strong numbers, as the momentum from the fourth quarter will continue. As a reference, the first quarter of 2016 had a vacancy rate of 4.5% and absorption of 586,062 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.