3 Drivers Behind Miami’s Industrial Market

Mark Behling

MIAMI—The Greater Miami industrial market is thriving with exceptional fundamentals and robust pricing metrics that continue to surpass record highs for best-in-class product. Vacancy rates are at 4% and last quarter we absorbed more than 500,000 square feet. Average asking monthly net rental rates are well above $0.70 per square foot, and rent growth remains steady with 3.1% year-over-year gains.

The three major factors influencing the market are availability of capital, e-commercial online sales and a perceived rising interest rate environment. On a national level, there is $250 billion of capital in the closed-end institutional funds, which is actively looking to deploy. Industrial real estate is a hot ticket, offering stable returns and growth to both foreign and domestic investors.