Miami Axis Park is slated to break ground later this year.<
MILLER CONSTRUCTION
Institutional investors are gorging on industrial properties in Miami-Dade. In it’s Q4 2019 market report, Avison Young noted industrial investment sales totaled nearly $1.4 billion last year, representing a 27.5% increase from 2018. Close of half of the buyers were institutional investors.
However, industrial developers are running out of vacant land to build warehouses on and are resorting more and more to infill redevelopment, which is often more costly, Avison Young found. The firm also noted that multifamily builders are buying up outdated industrial facilities to convert into apartment buildings, a trend that is likely to continue this year.
“Economic fundamentals remained strong and the rise of e-commerce alongside solid international trade continue to fuel Miami’s industrial market despite a slowing of the global economy,” the report states. “Although ongoing trade wars, escalating tensions in the Middle East, and uncertainty surrounding the upcoming political season present some notable headwinds in 2020, some fears have been mitigated with the passing of the USMCA (United States-Mexico-Canada Agreement) in the House during December.”
Investor appetite for industrial warehouses remains strong in Miami-Dade as demand continues to outpace supply, the report states. During 2019, developers added more than 5.6 million square feet of industrial product. As a result, the local inventory grew by 3%. At the same time, due to pre-leasing activity, 3.4 million square feet was absorbed. The vacancy rate was 4.06% in Miami-Dade last year, according to Avison Young.
The steady flow of development will continue for the next several months. Among the new projects breaking ground or scheduled for completion include:
- Miami Midpoint Logistics Park. After acquiring 18 acres in Hialeah Gardens, Foundry Commercial has announced plans to build a 320,000-sf speculative industrial project. The project has the potential to be a build-to-suit for a large user, or a two-building industrial park.
- Miami 27 Business Park. Two buildings totaling 723,208 square feet in Medley.
- Miami Axis Park. Three buildings totaling 415,460 square feet are scheduled to come online by mid-2020.