// INDUSTRIAL MARKET OVERVIEW
// U.S. OVERALL INDUSTRIAL CLOCK | Q4 2014
Dallas / Fort Worth, Oakland / East Bay
Peaking
market
Inland Empire, Los Angeles, Silicon Valley / South Bay
Central New Jersey, Central Valley (CA), Chicago, Denver,
Philadelphia / Harrisburg, Sacramento, Salt Lake City
Atlanta, Baltimore, Houston, Indianapolis, Long Island,
Minneapolis / St. Paul, North Bay (CA), Northern New Jersey, Orange
County (CA), Reno, San Diego, Seattle, St. Louis
Rising
market
Charlotte, Kansas City, Memphis, Nashville,
Portland, Richmond, Washington DC
Falling
market
Bottoming
market
Boston, Cincinnati, Cleveland, Columbus, MIAMI-DADE,
Greensboro / Winston-Salem, Hampton Roads, Las Vegas,
Milwaukee, Orlando, Phoenix, Pittsburgh, Tampa Bay
Detroit, San Antonio, BROWARD COUNTY / FORT LAUDERDALE
Jacksonville, PALM BEACH
// INDUSTRIAL MARKET OVERVIEW
Universally, industry professionals remain optimistic about the South Florida industrial
market, and particularly in Miami-Dade County. During the previous two years, nearly 2.0
million square feet have been delivered in Miami, nearly all of which has been absorbed,
leaving supply and demand in relative equilibrium. More space is scheduled to come off
the market in the coming year once tenants with recent lease executions occupy space
– last year saw a 13.0 percent year-over-year increase in leasing volume. The market’s
performance has left developers bullish on new construction, with nearly 3.0 million square
feet currently under construction in South Florida, and an estimated 17.6 million square feet
of space either planned or proposed.
As PortMiami gears up to become one of the first post-Panamax ready ports on the East
Coast, and as firms are mitigating risk by diversifying shipping routes and ports of entry,
the South Florida real estate market is poised for strong growth. Port Everglades is also
undergoing renovations to handle the new mega-ships. Another engine for the market has
been the increase in tourism, construction, and population density, which are helping to
offset any changes in port volumes. Despite a decrease in TEU volume at PortMiami in
2014, the industrial market’s vacancy rate remained steady as food and beverage suppliers,
home and construction suppliers, and aviation companies (a significant market driver in
southern Broward County) opened new locations and expanded.
While the market activity is not a hindrance for new development, the lack of land, coupled
with the conversion of developable land to multifamily housing uses is creating issues for
developers, who see growth opportunities in the market due to the Port upgrades underway
as well as the improved economic environment. As demand continues to increase,
and land for new development becomes scarcer, rental rates, which have been increasing
during the previous three years,