Miami industrial real estate market reports
Q4 2022
Miami’s industrial market continues to attract top-tier institutional tenants looking for large blocks of space. This has driven availability and vacancy to historic lows, at 10.1 million square feet (msf) and 2.1% respectively. A wave of move-ins at the end of the fourth quarter pushed absorption over 7 msf, and tight inventory has put upward pressure on rates, which grew 41.4% in 2022 to $15.16. Miami continues to see both proposals for new developments and strong leasing activity despite global macroeconomic concerns and fears of a recession. This signals that investors, owners and users all see strength in the Miami industrial market through 2023.
Deliveries
More than 5 msf of industrial space was delivered in 2022, making it the biggest year for industrial construction on record in Miami.
Absorption
Annual absorption amounted to 7 msf, which was just 242,000 square feet (sf) below 2021’s record absorption.
Direct asking rent
The direct asking rate for industrial space was up 41.4% from year-end 2022, even when excluding the under-construction inventory that helps drive rates up.
Availabilities
The 11.1% decline in availability year-over-year left only 10.1 msf available in the fourth quarter.
Vacancy
Total vacancy in the fourth quarter was 2.1%, the lowest ever recorded. Direct vacancy has plummeted in recent years as South Florida continues attracting institutional tenants in search of large blocks.
Investment sales
The average investment sale price at year-end 2022 was $205.58 per square foot (psf), up 24.1% year-over-year as Miami netted $1.63 billion in sales for 2022.
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