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Miami warehouses for sale

Market Reports

Market Statistics for Miami’s Industrial Real Estate in the 1Q 2017

 

Miami’s industrial real estate market had a strong start in the first quarter of 2017; both in sales and leasing. The net absorption of warehouse space was 602, 988 Sq. Ft.,higher than the fourth quarter 2016 and the first quarter of 2016. The chart below shows amounts and changes.  However, the vacancy rate increase to 3.9%, compared to 3.7% in the fourth quarter 2016 but lower than the 4.5% in the first quarter 2016. The light increase in vacancy is due to the delivery of new spaces to the market. This is still one of the lowest vacancies Miami’s industrial real estate market has seen in 10 years.

 

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Market Statistics for Miami’s Industrial Real Estate in the 4Q 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.

 

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Market Statistics for Miami’s Industrial Real Estate in the 3Q 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.

 

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Market Statistics for Miami’s Industrial Real Estate in the 2Q 2016

We are halfway through 2016. Miami’s Industrial Real Estate Market continued it’s solid performance, albeit slower than other quarters.  Vacancy rate for the second quarter declined to 4.4% from 4.5% in the first quarter and, 4.9% in the second quarter of 2015. The net absorption of warehouses space was 537,437 Sq. Ft. down from 586,062 Sq.Ft. in the first quarter and 959,898 in the second quarter of 2015. The chart below shows the changes:

The 4.4% vacancy rate is one of the lowest Miami’s industrial real estate market has seen in 10 years. The slowdown in net absorption could signal that demand for warehouse space is not keeping up with the new supply of warehouse space. As the table shows, absorption in the second quarter was 45% lower than the same time last year and 8.3% lower than the first quarter.

 

New construction showed a strong performance in the second quarter. 727,024 Sq.Ft. were delivered during this quarter. This is an increase from the 406,362 delivered in the first quarter and 189,140 SF delivered in the second quarter of 2015.  The addition of new buildings increased the total inventory of industrial space in Miami to 234,653,908 Sq. Ft. on 8,884 buildings. At the end of the second quarter, there were 2,397,088 Sq.Ft. of industrial space under construction; very close to all-time highs.

 

On sales of buildings, the second quarter reported 33 building sales at a volume of $90,583,000, totaling 1,047,769 Sq.Ft. This is an increase from the first quarter where 22 building sold at a volume of $61,787,900 on 1,123,071 Sq.Ft. However, it’s down from the second quarter of 2015, where 35 buildings sold at a volume of $228,963,300 on 2,448,548 Sq.Ft.  The market continues to experience a low inventory of properties for sale, which has kept pushing sale prices to peak highs.

 

The second half of 2016 is expected to experience a strong performance of sales and leasing. Last year, third quarter saw a net absorption of 706,060 Sq.Ft. and sales of 43 industrial building for a volume of $193,694,335.  

This quarter, the first ship that crossed through the expanded Panama Canal arrived to Miami. There has been mixed debates about the effects of the Panama Canal expansion on the Miami’s industrial real estate market. Still, it’s expected to be a net gain for Port Miami and logistic businesses. One company that moved to Miami to benefit from the Panama Canal is Seafrigo. Our team helped the company lease refrigerated space at Sough Florida Logistics. See the story HERE.

Until next quarter, feel free contact us any questions on Miami’s Industrial Market. We are the Miami Industrial Team. 786-433-2380.

 

 

 

 

 

 Market Statistic for Miami’s Industrial Real Estate 2Q 2016

Vacancy Rate

4.4%

Market Lease Absorption (Sq. Ft.)

537,437

Rental Rate ($/Sq. Ft.)

$9.41

New Space Delivered

727,024

Total Inventory (Sq. Ft.)

234,653,908

Total Buildings

8,884

Average Sale Price ($/Sq. Ft.)

$86.45

Cap Rate

6.62%

 

 

 

Top Leases in Miami Industrial Real Estate

Tenant Name

Address

Size (SF)

Eco Window

8502 NW 80th St

149,980

Ace Transport Miami

10901 NW 146th St

121,656

Neutralogistics

8502 NW 80th St

105,920

SCP Distributors

10810 NW 92nd Terr

44,703

Seafrigo USA

3200 NW 67th Ave

29,268

 

 

 

Top Sales in 2Q Miami’s Industrial Real Estate

Buyer

Address

Size (SF)

Sale Price

 

Pasadena at CA

11500 NW 123rd St

216,312

$9,450,000

 

COFE Properties

7250-7280 NW 25th St

167,200

$16,600,000

 

GPT NW 32nd Ave

11150 NW 32nd Ave

123,125

$8,150,000

 

16542 Holdings

16542 NW 54th Ave

92,889

$4,820,000

 

2320 NW 147th St

2320 NW 147th St

77,000

$3,200,000

 

Market Statistics for Miami’s Industrial Real Estate in the 1Q 2016

Market Statistics for Miami’s Industrial Real Estate in the 1Q 2016 The first quarter of 2016 showed strong numbers for the industrial real estate market in Miami. Vacancy rate decreased to 4.5% from 4.7% in the fourth quarter of 2015 and 5.2 % in the first quarter of 2015. During this quarter, there was a net absorption of 586,062 Sq. Ft. down from 961,428 Sq. Ft. in the fourth quarter of 2015 and 1,416,658 compared to the first quarter of 2015. The charts below show the changes: 

 

The drop in vacancy rate shows there are fewer spaces available in the market; however, the lower trend in net absorption signals that less space has been absorbed compared to past quarters. Still, the lack of functional space available pushed the average lease rate to $9.24/ Sq.Ft. industrial gross, up from $9.02/ Sq.Ft. in the fourth quarter of 2015 and $8.53/Sq.Ft. in the first quarter of 2015.

 

Delivery of new construction remains steady, although at a slower pace. In the first quarter of 2016, there were 406,362 Sq. Ft. of new construction delivered to the market. This number is down from 459, 805 Sq. Ft. delivered in the fourth quarter of 2015 and 609,194 Sq.Ft. delivered in the first quarter of 2015. This strong demand for warehouse space in Miami has attracted new development to the market. At the end of the first quarter of 2016, there were 2,405,232 Sq.Ft. under construction; the most since 2007. All this new construction increased the total inventory of industrial space in Miami to 233,719,623 Sq. Ft. on 8,871 buildings.

 

Sales transactions for Industrial buildings in Miami decreased in the first quarter of 2016. This quarter saw 22 sale transactions for a volume of $61,787,900 totaling 1,123,071 Sq.Ft. This is down from 29 transactions with a volume of $109,850,000 totaling 1,254,154 Sq. Ft. in the fourth quarter of 2015. Also down from the first quarter of 2015 where 35 buildings sold with a volume of $228,963,300 totaling 2,448,548 Sq. Ft. This decrease can be attributed to two things happening in the market: First, the sharp decline in inventory of buildings for sale.

 

Second, the increase on prices for buildings available for sale. As we move through the second quarter, the market is expected to continue its strong rhythm and post a positive net absorption. As a benchmark, the second quarter of 2015 experienced a net absorption of 959,898 Sq. Ft. and average lease rate stood at $ 8.62/ Sq. Ft. 

 

As we move through the second quarter, the market is expected to continue its strong rhythm and post a positive net absorption. As a benchmark, the second quarter of 2015 experienced a net absorption of 959,898 Sq. Ft. and average lease rate stood at $ 8.62/ Sq. Ft. 

 

Miami’s economy continues to be affected by the slowdown in Latin America and the stronger dollar. However, a new wind of weaker dollar is expected to provide breathing room to these economies and give them higher purchasing power for properties in Miami. Additionally, the lifting of the Embargo in Cuba is expected to bring demand for space, as materials for rebuilding the island will most likely be transported through Miami. For more information and other market statistics, contact the Miami Industrial Team at 786-433-2380.

 

 

 Market Statistic for Miami’s Industrial Real Estate 1Q 2016

Vacancy Rate

4.5%

Market Lease Absorption (Sq. Ft.)

586,062

Rental Rate ($/Sq. Ft.)

$9.24

New Space Delivered

406,362

Total Inventory (Sq. Ft.)

233,719,623

Total Buildings

8,871

Average Sale Price ($/Sq. Ft.)

$87.67

Cap Rate

5.77%

 

 

 

Top Leases in Miami Industrial Real Estate

Tenant Name

Address

Size (SF)

Telemundo Studios

11746 NW 25th St

467,000

Amazon

3200 NW 67th St

175,000

MA Laboratories

1701 NW 84th Ave

53,670

GAP Forwarding

11411 NW 107th St

32,000

Tango Real Estate

8060 NW 14th St

29,062

 

 

 

Top Sales in 1Q Miami’s Industrial Real Estate

Buyer

Address

Size (SF)

Sale Price

 

Clarion Partners

11500 NW 123rd St

136,500

$18,150,00

 

Hialeah Multi B

155 SE 10th Ave

81,656

$4,600,000

 

Terreno Realty

12950 NW S River Dr

60,000

$6,000,000

 

3500 Doral MRP

3500 NW 89th Ct

50,448

$13,850,000

 

Tango Real Estate

7840 NW 67th St

36,000

$3,400,000

 

Market Statistics for Miami’s Industrial Real Estate in the 4Q 2015

Miami’s Industrial Real Estate Market experienced robust growth in Q4 2015.  The vacancy continued its decline to 4.7%, down from 4.9% in Q3 2015. Attributing to this decline was the net positive absorption of 901,957 Sq. Ft. 

 

The lease rates for industrial space increased to one of the highest rates in over five years. The average asking lease rate in Q4 2015 stood at $9.01 per square foot (Industrial Gross) representing a 3.0% increase from the third quarter where the average lease rate stood at $8.75/ Sq. Ft.

 

The delivery of new industrial buildings continued its strong trend this last quarter with another . 459,805 Sq. Ft. of new warehouse space delivered in the fourth quarter of 2015. In total, 2,030,076 Sq. Ft. of new industrial space were added to the market last year. The total inventory of industrial space is Miami is now at 232,940,317 Sq. Ft. on 8,855 buildings.

 

Sale activity reported $109,850,000 on 29 buildings totaling 1,254,154 Sq. ft. and averaging about $87.59 per sq ft. Overall, 2015’s sales volume totaled $544,307,635 and pushed cap rates lower from 7.97% average in 2014 to 5.51%  in 2015. 

 

The strong absorption and low inventory of available properties have put pressure on prices in favor of landlords/sellers. The number of concessions and incentives offered by landlords have decreased considerably,  especially for spaces under 20,000 Sq. Ft.

 

Transitioning to a global scale, we ask ourselves, how will the downturn in China and Emerging Markets, including Latin America, affect the market? Miami, being the gateway to Latin America, is likely to see less activity from companies that do business in those countries.  This slowdown could affect smaller companies more so making it difficult to pay rent or mortgage. As a result, we are seeing a more than usual increase in the subleases available under 10,000 Sq. Ft.

 

Despite uncertainty in the U.S. and world economies, 2016 will still be a great year with strong absorption and an increase in prices for industrial space in Miami.

 

For more information and other market statistics, contact the Miami Industrial Team at 786-433-2380.

 

 

 

 

 

 Market Statistic for Miami’s Industrial Real Estate 4Q 2015

Vacancy Rate

4.7%

Market Lease Absorption (Sq. Ft.)

901,957

Rental Rate ($/Sq. Ft.)

$9.01

New Space Delivered

459,805

Total Inventory (Sq. Ft.)

232,940,317

Total Buildings

8,855

Average Sale Price ($/Sq. Ft.)

$87.59

Cap Rate

5.51%

 

 

 

Top Leases in Miami Industrial Real Estate

Tenant Name

Address

Size (SF)

Diversified Aero Services

10000 NW 25th ST

215,522

ICW LLC

6695 NW 36th AVE

115,000

Hikvision

11250 NW 122nd AVE

113,723

Rana Furniture

10000 NW 25th ST

100,000

Adrenaline Rush

2525 NW 82nd AVE

74,000

 

 

 

Top Sales in 3Q Miami’s Industrial Real Estate

Buyer

Address

Size (SF)

Sale Price

 

Guixco 5750 LLC

5750 NW 32nd Ct.

75,450

$3,600,000

 

ABC Properties

745 W 18th ST

51,979

$2,550,000

 

Doral 87 Group

8650 NW 58th St

37,953

$3,700,000

 

Schigiel Group

8125 NW 54th St

29,785

$2,600,000

 

 

 

Source: Costar

Blog - 4Q 2015 Market Report Graph .pdf
Adobe Acrobat document [53.9 KB]
Blog - 1Q 2016 Market Report Graph.pdf
Adobe Acrobat document [113.1 KB]

Warehouses Market

 

Edison Vasquez, P.A. CCIM
evasquez@comreal.com

2315 NW 107th AVE

Suite #1M02, Box 126

Doral, Florida  33172

USA


Phone: 786-433-2383

Fax: 888-316-6818

Office: 305-591-3044-X113

 

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