Miami, FL
Airport-Adjacent Warehouses in Miami See 24.6% Premium Over Metro-Area Rent
October 13, 2022
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According to a new report from CBRE, warehouses around busy airports in land-constrained markets, like Miami, command higher rents than their market average. The pressure to provide quick delivery of electric machinery, jewels, pharmaceuticals and other products has fueled demand for airport-adjacent warehouses and pushed rents in those submarkets to sizeable premiums.
CBRE’s analysis of the 20 busiest U.S. airports for airfreight found that average rents for warehouses within a five-mile radius of major airports are 18.8 percent higher than the average for their metropolitan areas.
Warehouses near major airports are coveted by shippers needing to use the speed of airfreight to transport high-dollar goods packaged in small enough sizes and quantities to fit on airplanes. Supply of such warehouses is limited in many dense airport submarkets like those around John F. Kennedy International Airport in New York, Los Angeles International Airport and Miami International Airport.
“Airfreight markets are typically land constrained, which allows for landlords to command premium rents. Furthermore, in South Florida, we have witnessed a higher percentage of rent growth in our air freight markets precisely because there is no ability to produce additional warehouse space,” said CBRE Executive Vice President Devin White, a local industrial expert based in Miami.
| Market | Avg Rent Within 5 Miles of Airport | Premium Over Metro-Area Rent |
| Los Angeles County | $23.02 | 36.8% |
| New York Boroughs | $32.35 | 34.6% |
| Miami-Dade | $13.33 | 24.6% |
| Chicago | $7.73 | 23.5% |
| Philadelphia | $10.00 | 23.5% |
| PA I-78/I-81 Corridor | $7.35 | 18.5% |
| Dallas/Fort Worth | $6.80 | 10.7% |
| East Bay, CA | $12.74 | 6.7% |
| Louisville | $5.15 | 4.5% |
| Cincinnati | $5.05 | 4.3% |
CBRE found that the largest share – 42.7 percent – of leasing activity in airport-warehouse markets so far this year was done by third-party logistics companies. That’s a greater share than 3PLs claim of overall U.S. warehouse leasing, 35.6 percent. The reason: Shippers, retailers and other companies often hire 3PLs to handle shipping of small-lot goods via high-cost airfreight.
The second largest share of leasing activity near airports went to general retail and wholesale companies at 32.2 percent. Food and beverage companies are a distant third at 5.2 percent.
To read the full report, click here.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2024 revenue). The company has more than 140,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.