This 961,345-square-foot industrial facility is located at 3300 Northwest 123rd Street in Miami.

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MIAMI—Industrial is one of thehottest assets in the country and Florida is no exception.Providing the perfect trifecta of benefits—people, access andinventory—investors and tenants have taken notice. That's accordingto Cushman & Wakefield Research's FloridaIndustrial Evolution report.

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CushWake Research analysts Kathleen Krilanovichand Michelle McMurray authored the report. Theduo's assessment details positive industrialconstruction trends in Florida's major markets—Tampa Bay, Miami,Orlando, Jacksonville, Broward County and Palm Beach County.

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“With nearly every major market performing at or better thanpre-recession levels, Florida is a prime location for newconstruction and tenant expansion,” Krilanovich tells GlobeSt.com.“Economic expansion, job growth and an influx of new people intothe state contribute to increases in consumer spending and supportthe underlying demand for industrial space inFlorida.”

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Industrial fundamentals across the stateimproved significantly during the current realestate cycle. Statewide occupancy rose to 95.1% and demandstayed steady as tenants absorbed over 3.7 million square feet ofspace year-to-date. Rental rates slightly declined year-over-year,due in part to the lack of quality space that remains on themarket.

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As demand reached new heights, developers showed confidence inbreaking ground on a number of industrial specprojects, a majority of which are slated for completion in 2017. McMurray tells GlobeSt.com, “For the first time since 2009,spec construction drove the bulk of activity with spec activityoutweighing build-to-suits in five out of six major markets.”

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Executive director Christopher Thomson has seensignificant growth in the amount of speculative industrialconstruction in Palm Beach County. “The current batch of newproduct has been the only significant new spec product deliveredsince the Great Recession in Palm Beach County,” Thomson tellsGlobeSt.com. “A strong residential building market is helping tofuel the Palm Beach County industrial market.”

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Thomson also noted that demand for modernindustrial assets is outpacing demand for existingproduct. As the Palm Beach County industrialmarket continues to mature, he says, it is harder for local ownersto compete with the national developers for tenants.

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Director David Perez has witnessed similartrends in Central Florida, where all of the nearly 1 million squarefeet of industrial space currently underconstruction is speculative. “We are seeing significant developmentacross markets that have historically not seen speculatively builtClass A product,” he tells GlobeSt.com. “This is contributing to a360-degree industrial market with moregeographically dispersed clusters, a shift that poses aninteresting test to the Orlando market and may signal a fundamentalevolution of how this market operates.”

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According to Perez, demand for new product is also driving themarket for industrial land. He's also seeing asignificant ascension of land pricing over the past 24 months, andsays this particularly evident in the small- and medium-sizedparcel trades.

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One firm recently sold 1 million worth of industrial real estatein 60 days. Get all the details.

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This 961,345-square-foot industrial facility is located at 3300 Northwest 123rd Street in Miami.

|

MIAMI—Industrial is one of thehottest assets in the country and Florida is no exception.Providing the perfect trifecta of benefits—people, access andinventory—investors and tenants have taken notice. That's accordingto Cushman & Wakefield Research's FloridaIndustrial Evolution report.

|

CushWake Research analysts Kathleen Krilanovichand Michelle McMurray authored the report. Theduo's assessment details positive industrialconstruction trends in Florida's major markets—Tampa Bay, Miami,Orlando, Jacksonville, Broward County and Palm Beach County.

|

“With nearly every major market performing at or better thanpre-recession levels, Florida is a prime location for newconstruction and tenant expansion,” Krilanovich tells GlobeSt.com.“Economic expansion, job growth and an influx of new people intothe state contribute to increases in consumer spending and supportthe underlying demand for industrial space inFlorida.”

|

Industrial fundamentals across the stateimproved significantly during the current realestate cycle. Statewide occupancy rose to 95.1% and demandstayed steady as tenants absorbed over 3.7 million square feet ofspace year-to-date. Rental rates slightly declined year-over-year,due in part to the lack of quality space that remains on themarket.

|

As demand reached new heights, developers showed confidence inbreaking ground on a number of industrial specprojects, a majority of which are slated for completion in 2017. McMurray tells GlobeSt.com, “For the first time since 2009,spec construction drove the bulk of activity with spec activityoutweighing build-to-suits in five out of six major markets.”

|

Executive director Christopher Thomson has seensignificant growth in the amount of speculative industrialconstruction in Palm Beach County. “The current batch of newproduct has been the only significant new spec product deliveredsince the Great Recession in Palm Beach County,” Thomson tellsGlobeSt.com. “A strong residential building market is helping tofuel the Palm Beach County industrial market.”

|

Thomson also noted that demand for modernindustrial assets is outpacing demand for existingproduct. As the Palm Beach County industrialmarket continues to mature, he says, it is harder for local ownersto compete with the national developers for tenants.

|

Director David Perez has witnessed similartrends in Central Florida, where all of the nearly 1 million squarefeet of industrial space currently underconstruction is speculative. “We are seeing significant developmentacross markets that have historically not seen speculatively builtClass A product,” he tells GlobeSt.com. “This is contributing to a360-degree industrial market with moregeographically dispersed clusters, a shift that poses aninteresting test to the Orlando market and may signal a fundamentalevolution of how this market operates.”

|

According to Perez, demand for new product is also driving themarket for industrial land. He's also seeing asignificant ascension of land pricing over the past 24 months, andsays this particularly evident in the small- and medium-sizedparcel trades.

|

One firm recently sold 1 million worth of industrial real estatein 60 days. Get all the details.

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