MIAMI—Spec industrial developments are springing up across South Florida but what about build-to-suits? GlobeSt.com caught up with Erik Foster, a principal in the capital markets group at Avison Young, to get his thoughts on this question, as well as his take on the biggest opportunities and challenges in South Florida's industrial market in part two of this exclusive interview.

You can still read part one: Miami Industrial: Will Supply Outstrip Demand? And be sure to catch up with Foster at RealShare Industrial Miami this coming Tuesday and Wednesday, Nov. 4 and 5.

GlobeSt.com: Do you expect to see more build-to-suits in the quarters ahead?

Foster: The build to suit activity will be steady, and the trend of  “spec-to-suit” will continue as well.  As more users continue to be outgrow existing facilities, they will evaluate whether a build-to-suit makes sense or whether tailoring a spec building to their needs is a more viable option. 

Globest.com: What are the biggest opportunities you see in South Florida's industrial market?

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

GlobeSt.com: What are the biggest challenges you see in South Florida's industrial market?

Foster: The industrial market is hitting records across the U.S., with South Florida sharing in the market improvements and positive job growth. We are seeing vacancies drop, rental rates move significantly off of their post-recession lows, and significant construction in many markets.

Macro economic events, such as interest rate risk, are items to watch as we move into 2015. Overall, however, the market is improving and the industrial market should benefit in the near term from regional airport and port construction projects that will lead to better access across the supply chain.