Miami, since the pandemic, has been a standout for its office sector — now the industrial asset class is starting to shine in the city. This is highlighted by Avison Young's third-quarter Miami industrial report, which showed a high increase in tenant demand.
Net absorption in the three months through September hit 670,459 square feet, up by double versus the second quarter. This is "signaling renewed momentum as demand gains traction across the market," according to Avison Young.
The top recent industrial lease in Miami was posted by The American Bottling Co., which took 150,600 square feet at NW 37th Ave. Amcar Freight and the United States Postal Service were the next runners up, taking 126,101 and 86,867 square feet, respectively.
That strong demand allowed industrial landlords to push asking rents up by 21 basis points to $17.59 per square foot. Not only did that mark the fifth straight quarter of rent growth — but core submarkets are now asking for $9-$11 per square foot above levels in 2020. Airport West had the highest rates, commanding $19.58 per square foot.
"Today, location comes at a premium for tenants," Avison Young highlighted.
Overall vacancy saw a 20 basis point drop to 5.8 percent.
And another area that impressed was sales. The $687 million volume marked the highest industrial amount in all of Florida during the third quarter. Combined with Fort Lauderdale, the two markets accounted for half of Florida's industrial sales. Terreno Realty made the biggest purchase in Miami thanks to its $130.7 million deal at 6450-6550 NW 97th Ave.
"With the current level of investment flows, Miami is expected to remain one of Florida’s most competitive industrial markets," Avison Young predicted.
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