Strong Demand Balances New Industrial Deliveries in Miami-Dade County
The industrial market in Miami-Dade County continues to flourish in the second quarter of 2018 as demand for space endures and supply rapidly delivers. The vacancy rate currently stands at 4.3 percent as the heightened demand for industrial space balances out the large amount of inventory delivered this quarter. We anticipate the vacancy rate to remain stable as new construction delivers and tenants commit to longer-term leases to enter and expand in the industrial market in South Florida. The asking rate for industrial and flex space in Miami-Dade County currently averages $11.08 per square foot, a 2 percent increase year-over-year.
Construction Rises to Meet the Relentless Demand for Industrial Product in Broward
Broward County’s industrial market activity has slowed down in the second quarter of 2018. While the industrial market as a whole remains energetic, Broward’s fundamentals have lagged. Vacancy rates for industrial assets currently stand at 4.7 percent, a 110-basis point increase year-over-year. However, the vacancy rate in Broward County has remained below 5 percent since the fourth quarter of 2016. The county had negative absorption of 176,977 square feet in the second quarter of 2018 as new industrial supply steadily delivers to the market