The Miami industrial market ends Q3 2019 with a 4.2% vacancy rate and average lease rate over $12.32 per sq. ft. (gross). The strong activity continues as more companies expand and new companies move to the area. There was 3.1 million sq. ft. of positive absorption over the past 12 months; averaging about 1M sq. ft. per quarter ; a sign that our market is relatively healthy. New construction keeps pushing along at record levels; there was over 4 million sq. ft. of new construction completed over the past 12 months, which is the highest level in a decade. In addition, at the end of the quarter, there were 4,105,432 sq. ft. now under construction. The most notable area of supply is the emergence of North Miami Area (Hialeah Gardens, Opa Locka / Gratigny), the metro’s second largest sub-market. There is currently more than 1.5 million sq. ft. under development in this sub-market, triple that of Miami Airport West, which is the metro’s largest sub-market. North Miami Area is home to projects such as Amazon’s recent endeavor, which just finished an 836,000-SF fulfillment center next to the Opa Locka Executive Airport.

Fueling all this growth is the growing trend in population. Miami-Dade county’s labor market has grown by 12% over the last five years, and the current unemployment rate is 3%, which is over a percent less than a year ago. The labor market is forecast to grow by 3% over the next five years. However, Miami’s labor force is heavily dependent on international arrivals and could be greatly affected by a change in immigration policy and or changes in economic conditions in Latin America.

Vacancy rates for Industrial Space in Miami have fallen and stayed around 4%, and they are expected to stay below the national average. Supply has remained strong. There has been an absorption of 2,804,575 sq. ft over the past year, with most transactions occurring near the airport, along State Road 826, Hialeah, just south of the Opa Locka Executive Airport. Miami and Fort Lauderdale have the second highest asking rents on the U.S. east coast, just behind New York City. Miami’s rent prices stay high due to the consistent demand and natural land restraints. The average rent for warehouse and distribution space in the Miami area is over $12/sq. ft.

Sales of industrial building continue to be strong during the quarter. Not surprising, Blackstone has been one of the most active buyers of industrial space in this market. Buying portfolios from TA Realty and Global Logistics Properties (GLP). Excluding portfolio sales, there were 3,579,448 Sq. Ft. sold in Q3 2019 with a sales volume of $454,791,600. Putting the average sale price at $127/Sq.Ft. Definitely one of the stronger quarters in record.As the leader in terms of economy in the state of Florida, Miami has experienced favorable economic and demo-graphic conditions over the last five years, and the forecast calls for continued growth, which could be accelerated if the region attracts more high-paying jobs in more diverse and larger employers to improve Miami’s income base and support commercial real estate growth.


ComReal closes three deals totaling 144,000 sq. ft. of warehouse space! 

The ComReal Miami-Doral Industrial Team led by Edward Redlich, SIOR, CCIM, and Patrick McBride, Esq. has successfully assisted Omni Transloading and Logistics (Omni) open warehouse spaces totaling 144,000 sq. ft. at Flagler Station in Medley and International Corporate Park in Doral. These three multimillion-dollar deals are all located in Class-A warehouse space convenient to transportation and logistics access points such as the Florida East Coast Railroad (FECR) and Miami International Airport. ComReal team members Edward Redlich and Patrick McBride overcame significant obstacles in finding the warehouse space for the client, Omni. ComReal and Omni have a close working relationship that spans over 10 years!

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What are “last mile” warehouses?

The explosive growth of e-commerce has resulted in a race to reach consumers. Some retailers are offering one-day, same-day, even one-hour delivery in a bid to stay ahead of the pack. How retailers fulfill this promise is through what’s known as “last mile” warehouse facilities. The term “last mile” is used in supply chain management and transportation planning to describe the movement of people and goods from a transportation hub to a final destination, such as a person’s home. Therefore, when we talk about “last mile” warehouses, we’re referring to the warehouse located closest a final destination – even though most are not technically within one mile of a destination.

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