South Florida Industrial Market Sees Significant Growth in Warehouse Rents

The industrial market in South Florida continues to flourish, with warehouse landlords firmly in control. According to a recent JLL report, median asking rents surged in the second quarter, showcasing robust demand across Miami-Dade, Broward, and Palm Beach counties.

Key Highlights of the Industrial Market

• Rent Increases: In Miami-Dade, rents rose by 9% year-over-year, reaching $17.42 per square foot, while Broward County saw an impressive 17% increase, bringing rents to $16.18 per square foot. Palm Beach County’s rents edged up to $14.70.

• Low Vacancy Rates: Vacancy rates across all three counties remain under 4%, indicating a high demand for warehouse space. Miami-Dade’s rate sits at 2.3%, Broward at 3.2%, and Palm Beach at 3.9%.

• Active Leasing: The second quarter brought substantial leasing activity, with notable deals including MD Turbines Holdings signing for 178,201 square feet at Countyline Corporate Park in Miami-Dade. Furthermore, in Broward, Compass Group USA secured 69,697 square feet at a Miramar complex.

Major Transactions in the Market

Several significant trades highlighted the second quarter:

• Hillwood’s Acquisition: Ross Perot Jr.’s Hillwood invested $106.5 million in April for a distribution facility in Jupiter leased to Amazon.

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• Mormon Church Investment: Property Reserve, the real estate arm of the Mormon Church, acquired a Hialeah warehouse for $56 million.

Detailed County Overviews

Miami-Dade County

• Median Asking Rent: Increased from $16.06 to $17.42 per square foot.
• Leasing Activity: Tenants leased 1.6 million square feet, with 7.5 million square feet under construction.
• Largest Lease: MD Turbines Holdings at Countyline Corporate Park.
• New Acquisitions: East Capital doubled its portfolio in Medley with an acquisition for $17.5 million.

Broward County

• Median Asking Rent: Rose from $13.88 to $16.18 per square foot.
• Leasing Dynamics: Over 500,000 square feet leased, with minimal new construction due to limited land.
• Key Transaction: Tishman Speyer acquired Rock Lake Business Center for $100.7 million.

Palm Beach County

• Rent Trends: Climbed slightly from $14.07 to $14.70 per square foot.
• Vacancy Status: Increased marginally from 3.7% to 3.9%.
• New Developments: A joint venture secured a $52.3 million construction loan for the Egret Point Logistics Center in Boynton Beach.

Conclusion

The industrial sector in South Florida is thriving, with rents on the rise and demand continuing to exceed supply. As landlords maintain leverage in setting rental prices, the influx of significant investments indicates a bullish outlook for the warehouse market. For further real estate insights, check out the latest market reports here and here.

This ongoing evolution in the industrial landscape emphasizes the importance of staying informed about market trends and opportunities. The latest figures and developments ensure that both investors and businesses are keenly aware of the vibrant marketplace that South Florida represents.