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Miami Industrial Figures - Q3 2023

October 10, 2023 5 Minute Read

Following yearly supply outpacing demand for the second consecutive quarter, as of the end of the third quarter of 2023, vacancy increased by 30 basis points quarter-over-quarter to 3.4%.
Construction pipeline remains strong with 4.0 million sq. ft. of deliveries, with another 9.6 million sq. ft. under construction. Some of the most notable projects to be delivered this year include Miami Midway Park, Palmetto 74, and Northwest Dade Logistics Center II. There is 2.2 million sq. ft. expected to be delivered by end of 2023, of which 40% is preleased.
The overall asking rate grew at a slight pace during the third quarter of 2023 to $15.05 NNN. Asking rates in Miami’s industrial market have increased by 23% since last year.
In the near-term, a strong construction pipeline will lead rent and occupancy increases in submarkets with class A product, as flight to quality persists and supply on these assets become more constraint. The new deliveries will result in outpacing demand in the near term. Long-term outlook remains positive and competitive given the market’s strong economic fundamentals, such as a diversified labor pool and growing population.