Market Statistics for Miami Industrial Real Estate - Q4 2017
Leasing activity for warehouse space in Miami increased greatly during the 4Q of 2017. Sales of buildings also remained strong, although at a slower pace than last quarter. Net absorption of warehouse space was for this quarter was 373,017 Sq. Ft., an increase from the third quarter 2017 but a decrease from the fourth quarter 2016. The chart below shows amounts and changes. Vacancy rate continued its declining trend and stood at 4.00% in the quarter, compared to 4.10% in the 3Q of 2017 and a slight increase from 3.70% in 4Q 2016. This low vacancy rate is one of the lowest in the country. Showing the strength of the industrial real estate market in Miami. This has put pressure on lease rates, which increased to an average of $9.76/Sq. Ft. during the quarter.
New constructions of warehouse buildings continued strong during the quarter. Seven buildings were delivered, totaling 248,395 Sq.Ft. a slight decrease from the 3Q 2017 where 578,075 Sq. Ft. were delivered. This delivery of new buildings helped increase the total inventory of industrial space in Miami; for 4Q 2017 it stood at 239,969,058 with a total of 8,923 buildings. Going into next quarter, there are 5,084,198 Sq. Ft. of industrial space under construction.
Sales of industrial buildings had a robust performance in the fourth quarter. There were 31 industrial sales with a volume of $180,010,100 totaling 2,193,048 Sq. Ft. This represents a decrease from the third quarter 2017 where there was a volume of $298,600,828 on 2,683,852 Sq.Ft. Also, a decrease over the fourth quarter 2016 where the volume $275,062,100 for a total of 1,775,493 Sq. Ft.
2017 was another strong year for the warehouse market here in Miami. More demand for warehouse space will keep absorption rate positive. In the coming quarters, we’ll see more companies from high tax states moving to South Florida. First quarter 2018 should bring more positive news. As a reference, 1Q 2017 showed 3.9% vacancy rate with 602,988Sq.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.