Miami Industrial Market Report

Construction rises with a minimal impact on vacancy. Drawn by Florida's household-friendly tax laws and warm climate, the metro is expected to see a substantial amount of net in-migration moving forward. Population gains should heighten consumer demand for essential goods, requiring necessity-based retailers to maintain or enlarge their distribution and warehouse footprints. However, large volumes of speculative construction underway will gauge existing tenant demand for newly-built space. As of June, roughly 40 percent of the space slated for year-end completion was unclaimed. Still, Miami's historically low vacancy rate suggests this construction is warranted and will be absorbed in short order.