Miami’s supply of small bay industrial buildings continues to dwindle

graphs of existing and under construction industrial inventory by square feet in the Miami market as of Q3 2023
  • Small bay warehouses in South Florida are still in high demand. With a vacancy rate of only 2.4%, industrial rental rates have risen by 11% year to date, reaching slightly above $16 per square foot.
  • As of September 2023, there are merely seven buildings under construction in the Miami market that are less than 100,000 square feet in size. These buildings make up just 20% of the total number of properties under construction, illustrating the scarcity and high demand for these smaller buildings.
  • In contrast, mid-sized industrial spaces (100,000-250,000 square feet) take up 34% of Miami’s existing industrial market, and carry a higher vacancy rate of 2.7%. Despite the slightly higher vacancy rate, mid-sized buildings account for 52% of new development underway.

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