Increased Demand Sparks Record Low Vacancy
The Miami-Dade County industrial market continued to compress in the second quarter of 2022, despite more than one million square feet of new industrial product delivering to the market. The vacancy rate steeply declined to a record low of 2.3 percent, a 40-basis point drop quarter-over-quarter and a noteworthy 120-basis point drop year over year. At the same time, rental rates increased 5.6 percent year-over-year, to $11.88 per square foot NNN. Ongoing supply chain challenges, coupled with continued population growth, create a need for extra warehousing space and bolsters tenant interest in the market. Meanwhile, the trend of 3PL providers offloading excess space may help to alleviate the tightening market. Strong leasing and investment activity in the local market shows some insulation to the broader economic headwinds of rising interest rates, inflation and a potential looming recession.