Demand for Industrial Real Estate in South Florida continues to increase at an accelerated pace. This is, in part, due to the pandemic. Many businesses have had to pivot to online sales. For instance, grocery suppliers that have shifted to online platforms are finding it critical to have cold storage facilities. This includes the giant Amazon. It was only a few years ago when only a few investors looked at cold storage, today, it’s a must-own for most REITs. In addition, users are seeking manufacturing space with additional warehouse storage. Another trend that we are observing is an uptick in the need for locations close to mass population, also called “last mile” delivery centers.
While there is quite a bit of relocation to the South Florida area by U.S. companies there is a swarm of global buyers actively pursuing industrial opportunities available in the area. Most of the global investors are looking to divest of their other property types in their portfolios, such as those related to hospitality, and instead seek firmer foundation in industrial real estate.
We have not yet reached a watershed in the South Florida industrial real estate market, but the demand may soon outpace the supply thereby creating a hyper-competitive environment. Statistically speaking, 20% ($75B) of all global industrial real estate investment dollars in the first 6 months of 2020 went toward industrial and logistics properties. Industrial space became the third most popular real estate asset.
The Industrial Team at ComReal has been working diligently with many qualified buyers looking to relocate their businesses to South Florida. South Florida is a hub for shipping whether by rail, air or cargo ship which is one of the many reasons this area is so attractive for global investors.
If you would like more information on the industrial real estate market in South Florida, or nationally, we ask that you give us a call so we can discuss your goals. We also have insightful information available on our website.
· Current Market Rates
· Market Reports
· Warehouses Market Podcast
· South Florida Industrial Real Estate FAQs
Additionally, our can prepare custom opinion of value for property owners and site selections for tenants looking to lease space in South Florida.
When it comes to choosing the right Industrial Real Estate team you should choose the one that knows the area, has the connections, and the expertise to create a great deal.
The Industrial Team at ComReal is happy to assist businesses and owners in the leasing and sales of Industrial Properties. You can contact them at 786-433-2380.