MIAMI—Industrial commercial real estate had a banner year in 2013, but will the tide turn in 2014 with the flood of space coming online? Or will tenant occupiers fill it up as fast as it hits the market?
We asked Steve Medwin, managing director of Jones Lang LaSalle, for his take on Miami’s industrial market this year. Following an active 2013 for South Florida’s industrial market, he told us he expects leasing activity to remain strong in 2014.
“Submarkets like Medley and Airport West should continue to outperform other industrial areas in the region, as market conditions remain favorable and vacancy rates low,” says Medwin. The Medley East & Hialeah Gardens Industrial Parks, a portfolio comprising two industrial parks spanning 844,889 square feet across 15 manufacturing, warehouse and distribution buildings, was one of the largest industrial deals of 2013, selling for $48.75 million.
At RealShare Industrial in November, one key question was around the millions of square feet of industrial developments coming online in Miami in 2013 and 2014 and how that would impact pricing. Although the general consensus is that now is a good time to develop, it could delay a full pricing recovery.
“National and international investors seeking to acquire industrial properties in South Florida will continue to drive pricing higher for quality assets,” Medwin says. “Given the volume of spec development under construction and planned this year, time will tell whether market demand will be enough to support all of the new supply being delivered.”