MIAMI—Spec industrial developments arespringing up across South Florida but what about build-to-suits? caught up with Erik Foster, a principal in the capitalmarkets group at Avison Young, to get his thoughts on thisquestion, as well as his take on the biggest opportunities andchallenges in South Florida's industrial market in part two of thisexclusive interview.


You can still read part one: Miami Industrial: Will SupplyOutstrip Demand? And be sure to catch up with Foster atRealShare Industrial Miami this comingTuesday and Wednesday, Nov. 4 and 5.

| Do you expect to see morebuild-to-suits in the quarters ahead?


Foster: The build to suit activity will besteady, and the trend of “spec-to-suit” will continue aswell. As more users continue to be outgrow existingfacilities, they will evaluate whether abuild-to-suit makes sense or whether tailoring aspec building to their needs is a more viable option.

| What are the biggest opportunities yousee in South Florida's industrial market?


Foster: Opportunities are generally the same inSouth Florida as they are in similarly dense markets throughout thecountry. Redevelopment and upgrading “B” product to users demandsand creative land use while providing state of the art distributioncenters are themes in markets like Miami, New Jersey, the MSA ofChicago, Seattle, San Francisco, etc.

| What are the biggest challenges you seein South Florida's industrial market?


Foster: The industrial marketis hitting records across the U.S., with South Florida sharing inthe market improvements and positive job growth. We are seeingvacancies drop, rental rates move significantly off of theirpost-recession lows, and significant construction in manymarkets.


Macro economic events, such as interest rate risk, are items towatch as we move into 2015. Overall, however, the market isimproving and the industrial market should benefitin the near term from regional airport and port constructionprojects that will lead to better access across the supplychain.

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