X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Led by Miami-Dade, which accounts for more than 75% of the tri-county inventory of manufacturing, warehouse/distribution and office/service space, the South Florida industrial market is “flourishing,” says Eric D. Swanson, executive vice president of Codina Group, whose research team compiled the data

The Airport West submarket alone accounted for 1.98 million sf of Miami-Dade’s total 5.1 million-sf first-half absorption. Yet it still ended the six-month period with the highest vacancy rate (8.9%) of any submarket.

Responding to solid user demand, developers had 4.3 million sf of new industrial product under construction in the county at mid-year, with 855,888 sf more in some stage of planning. That level of new building may have been a factor in holding Miami-Dade’s average gross psf rental rate of $5.92 below the regional average of $6.25.

Broward’s industrial space absorption during the first six months of 2000 was slightly above the two million-sf mark and trimmed the county’s vacancy rate to 6.6% from 7.1% at year-end 1999. A little over two million sf of new construction was already in the ground at mid-year and another 2.22 million sf of projects is on the drawing board.

The two submarkets with the highest vacancy rates, Southwest Broward (10.8%) and Sunrise (9.7%) have also witnessed most of the new development. The average psf gross rental rate at mid-year was $7.40, which made Broward the most expensive county in South Florida for industrial space.

Palm Beach’s industrial inventory, which is half as large as Broward’s and about one fifth the size of Miami-Dade’s, also has the lowest vacancy rate (3.6%) of all three counties. The tightest submarket was Jupiter/Palm Beach Gardens (1.2% vacancy), with Boca Raton (1.9%) not far behind. Moreover, just 111,200 sf of new space was under development and only 337,921 sf proposed. The average psf gross industrial rental rate in county at mid-year was $6.16.

The Codina researchers cite the local geography as a controlling factor to future industrial activity in Palm Beach. The geography limits most future development to a relatively narrow north-south corridor. However, planned expansion of Southern Boulevard between I-95 and U.S. 441 may open that area for more projects.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.