MIAMI—Industrial markets will continue to perform strongly in 2015 and businesses will keep expanding and spending capital dollars to shore up business, which in turn will spill into the local economy. At least that's the way Viola Sanchez sees it.
Sanchez has plenty of skin the game. She's vice president of the Southeast Division with PSBP, the owner of the largest industrial property in Miami—the Miami International Commerce Center. And she's making some bold predictions.
“The construction boom will be at its peak and we will continue to see an exodus to the newer generation of buildings leaving larger blocks of vacancies for the second and third generation buildings,” Sanchez tells GlobeSt.com. “Although the migration is to the larger blocks of space, look to small business to fill the void and continue to influx to South Florida.”
As Sanchez sees it, these companies will be drawn to the second and third generation industrial spaces due to their location and variety of size inventory. What's more, she predicts, industrial rents will continue to escalate but will be kept in check by the availability of inventory across all products types as landlord will be fiercely competing with one another nab larger, credit customers.
“Concessions and other incentive packages will be more prevalent in the next few months,” Sanchez says. “But overall, we are optimistic and many of the variables will be in the landlord's favor.”
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