In a mixed second-quarter report from Avison Young on Miami's industrial sector, vacancy is starting to tick up, reaching six percent in the three-month period. That marks a 40 basis point increase from the 12 months prior.
Class A vacancy was the highest at 13 percent. Meanwhile, Class B and C's came in much lower, averaging just 4.3 percent and 3.5 percent, respectively.
"Class B and C vacancy rates have remained remarkably stable, holding below 5%, as tenants increasingly prioritize value over newly built assets in today’s rate-sensitive environment," Avison Young wrote.
The elevated overall vacancy comes as two million square feet of industrial product was under development, which outpaced net absorption significantly by over 1.6 million square feet.
However, there is some good news. Demand at least remained positive for the second straight quarter and improved from the previous three months.
Also, rents jumped by 97 basis points year-over-year to $17.38 per square foot — the fourth straight quarter that the category grew.
"Strong pricing dynamics are returning in the most strategic locations, where the market is consolidating around proven assets and strategic scarcity, not scale, has become the lever for sustained pricing power," Avison Young said.
Additionally, construction is relatively lower compared to 2021-22, when the amounts were in the seven million range.
The largest lease posted in the industrial market in Miami during the second quarter was CEVA Freight's 364,608-square-foot renewal. It was followed by Amazon (235,850 square feet) and Walton & Post (179,652 square feet).
Envision Cold had the largest buy thanks to its $47.25 million acquisition of a site at 2900 NW 75th St.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.