Market Snapshot 9/2016
Miami is one of the top three industrial markets in the country along with southern California and northern New Jersey. Demand is on the upward trend for both leasing and sales in the industrial sector because of new growth and perceived stability in the current economy. In particular, the anticipation of the Panama Canal expansion has fostered economic growth, driving international trade and infrastructure in South Florida.
Because of the demand there's about 831,000 sqf. under construction and an additional 4.6 million sqf. slated for the next decade in Miami. At the same time you see pricing for leasing and land going up. Under 7% vacancy is usually the trigger for new construction. It helps that unemployment is shrinking, and so is available land.
Vacancy 4.2%. A year ago it was 4.6%.
Since land is at a premium (West Dade)$24-$26 per square foot. Medley $16-$22, $14-$16 psqft for developed property), institutional investors are being drawn to buy existing product.
Among the more active companies are third party logistics companies.
Miami has just over 200 million sqft of Industrial space. Between the airport and Medley market there's a little over 90 million square feet.
Interestingly enough, companies are now starting to appreciate more Class A building designs-increase their ability to store yet maintain a smaller horizontal footprint. This new product is being developed primarily in the Medley/Hialeah submarkets.
The whole market is in the upswing. Class A space (6.3 mil sq.ft. in the Doral market is going for $9.50 per sqft. for users of less than 50k sqft. Falls to $9.00 for 50k + sqft.
Class B buildings-older product, and shorter heights, are in great locations and still satisfy most company’s needs. Rates for larger “chunks” of this type class/space are showing slight declines. Nearly 17 Mil. sqft. going for $8.50+- per sqft.
Older buildings featured 24 ft ceilings compared to today's demand of 30-36 foot clear heights.
This year has been another great year for the Doral/Airport industrial submarket and South Florida.
For professional advise in the Industrial Airport West market I can be contacted at 786.471.5228
"Doral Warehouse Specialist"Stop by the office, coffee is on me!
Monthly Archives: September 2013
For Sale 6,000,000 Property Summary – Doral Professional Center Property Type: Office, Industrial Year Built: 1988 Total Building SqFt: 48,224 Total SqFt of Lot: 68,154 Total Acres of Lot: 1.56 Number of Floors: 3 Construction Type: Concrete General Zoning: … Continue reading
Owners: TAKUK LLC Just SOLD: $2,320,000 7/2013 Year Built: 1976 Year Renovated: 2008 Highlights Freestanding Office/Warehouse 30,040 sqft includes 3,840 sqft offices on 2nd floor 80% Airconditioned Heavy 3 phase Electrical service 7,680 … Continue reading
As a good state for business, Fla. ranks pretty high TALLAHASSEE, Fla. – Sept. 13, 2013 – Florida ranked No. 1 for Renewed Consideration Post-Recession by Area Development Magazine. Gov. Rick Scott touted the award, noting that the state received … Continue reading
Owner: DESITOPS INC Folio: 35-3033-001-0060 Adj Sq Footage: 28,760 Lot Size: 53,640 SQ FT Year Built: 1972 Sale Date: 2/2004 Sale Amount: $1,500,000
OWNER: RAINBOW BCH DEV CO INC % STUART BERNSTEIN DDS Folio No.: 35-3033-001-0070 Distribution Warehouse. Current tenant is a distributor of Church literatures. Year Build: 1973 4 Bays with Office Space Lot Size: 1.21 acres Adj. Sq.Ft.: 31,821 Sale … Continue reading
Owner Name: Lipari Investments Folio: 35-30-33-001-0100 For Lease 5.76 SQFT. Last Sold: 4/2013 $2,125,000 Property Subtype: Warehouse (Industrial) Stories: 2 Building Area: 45,598 Lot Size: 1.24 acres Lot Dimensions: 1.239 AC Year Built: 1976 Vacant at this time.