Figures
Miami Industrial Figures - Q3 2024
October 9, 2024 5 Minute Read
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- Miami’s industrial market remains strong but is softening compared to its pandemic-era bull run. The vacancy rate of 5.5%, has more than doubled over the past two years. This increase is driven primarily by the delivery of new speculative buildings, with almost 40% of space delivered since early 2023 currently vacant and available.
- While this new supply will continue to weigh on the market through 2024, the pipeline has thinned considerably. About 3.9 million sq. ft. remains underway, and new construction starts are down more than 75% year-over-year. This will mean fewer deliveries by 2025, giving the market time to absorb the overhang of new supply.
- Looking ahead, demand is expected to remain positive, but because of Miami’s active construction pipeline, vacancies will likely trend upward. The rising vacancies are expected to put downward pressure on rent growth, which will likely continue to decelerate.