Miami-Dade Industrial Investment Forecast
Tight Conditions and Land Constraints Support Rent Gains;
Capital from Across the Nation Active in Miami
Development gains signify pent-up demand. South Florida's industrial sector recovered from the impact of the health crisis faster than the overall economy though payrolls will not reach pre-pandemic levels until later this year. This job growth along with stimulus funds will contribute to retail sales which grew nearly 25 percent between 2019 and 2021. Consumer spending included a sizable surge in online shopping necessitating the need for more distribution and last-mile industrial space. As a result vacancy is at its lowest rate in two decades despite consistent deliveries over the last several years; development picks up this year however as builders find infill locations to expand stock. Of the nearly 6 million square feet of industrial space slated for delivery only one project surpasses the 500000-square-foot threshold. Speculative construction is prominent though with more than half the underway space without leasing commitments.