South Florida Industrial Real Estate Market Highlights
- South Florida has been a hub for distribution centers for years. Between the Port of Miami and Port Everglades, there has always been high demand for industrial real estate in this market. Today, with the growth in ecommerce demand, the area has become more vital for users of industrial real estate than ever.
- The South Florida industrial real estate market had a record breaking quarter in Q4 2021 — reaching new heights in investment sales volume, rents and occupancies.
- With over $872 million in total sales volume, flex space recorded over $92 million, logistics space recorded over $672 million, and specialized space recorded over $107 million.
- Leasing demand for industrial space remains high in South Florida, with vacancy rates at all-time lows. Currently, vacancy in flex space is at 2.83%, vacancy in logistics space is 3.28%, and vacancy in specialized space is at 2.08%.
- All-time high vacancy rates are directly correlated with all-time high rental rates, which South Florida has clearly been exhibiting. The rental rate for flex space is currently priced $19.33, the highest in any Florida market. Logistics and specialized space are currently priced at $15.39 and $15.62, which are also considerably high for all Florida markets. With demand so high, it is unlikely that this trend will lose momentum in 2022.
- Despite headwinds from geopolitical turmoil and growing concerns about inflation, industrial assets continue to perform at a high level. For investors looking for solid long-term returns, South Florida industrial space should be a cornerstone of their portfolio.
Read or download Franklin Street’s full South Florida Industrial Market Report below: