MIAMI—With so much new industrial supply in the pipeline, will demand remain strong? Erik Foster, a principal in the capital markets group at Avison Young, thinks so. GlobeSt.com caught up with Foster to discuss this and other topics in part one of this exclusive interview. Be sure to come back to this afternoon's Miami edition for part two, and say hello to Foster at RealShare Industrial Miami on Nov. 4 and 5.

GlobeSt.com: Will the demand pipeline continue to be strong for industrial in South Florida?

Foster: South Florida is a gateway market with access to a significant population base so it will be a viable port and distribution market for quite some time. We are seeing this type of activity nationally as well, as population growth, brisk port activity, strong logistics linkages, and pro-business environments promote activity in states such as New Jersey, Texas, North Carolina, and California.

GlobeSt.com: How will new supply impact the market?

Foster: New supply has been tempered in most markets, yet rental rate growth and declining vacancies, such as the record low that we are seeing in Chicago and other major markets, is creating demand for product.  The new supply pipeline will take 12 to 18 months to achieve leasing and sales status, leaving investors without adequate supply to meet demand.

Consequently, we expect to see prices increase by 3 to 7% for industrial assets in many markets going into 2015. In key gateway markets, such as New Jersey and Los Angeles, the increase may be as much as 7 to 10%.

GlobeSt.com: Will spec development continue to lead the construction demand?

Foster: Spec construction will continue to drive a significant portion of the construction pipeline, but build-to-suit activity will always have its place for certain tenants. Build-to-suits are ideal for companies with specialized needs, such as tenants who want a high level of finish to the space or food manufacturers who need certain freezer and cooling capacity. Other companies will move toward build-to-suits if there is not enough new spec space out there to meet their needs.