Vacancy Rates Remain Low Despite Deliveries in Miami-Dade County
Industrial has remained the most-resistant asset type in Miami- Dade County in the third quarter of 2018 boasting strong market fundamentals. The vacancy rate currently stands at 3.8 percent as the demand for industrial space endures and supply rapidly delivers. We anticipate the vacancy rate to decrease as new construction leases up and tenants commit to longer-term leases to enter and expand in the Miami industrial market. The asking rate for industrial warehouse space in Miami-Dade County currently averages $9.95 per square foot, a 3.8 percent decrease year-over-year. Asking rates have slightly dropped this quarter as large amounts of new supply continue to deliver. Flex rates continue to rapidly increase averaging $19.37, a 7.7 percent increase year-over-year.
In the third quarter of 2018, 990,660 square feet of industrial and flex space was delivered into Miami-Dade County. The heightened demand for space was displayed by the colossal 1.5 million square feet of space absorbed this quarter. Year-to-date, 2.5 million square feet of industrial and flex space has been absorbed in Miami-Dade County. The market continues to have limited land availability and developers are looking for new and innovative ways to develop industrial product. There is currently nearly 5 million square feet of industrial and flex space under construction in Miami-Dade County.