From still left: Prologis’ Hamid Moghadam, MG3 Group’s Marcelo Saiegh, and TA Realty’s James Buckingham (Getty, Prologis, MG3 Team, TA Realty)
South Florida’s industrial market slowed down slightly in the last quarter of final 12 months, as vacancies inched up while asking rents rose again.
The tri-county location posted a 4 percent emptiness price as opposed to 3.4 p.c throughout the identical time period of the former 12 months, in accordance to a latest Newmark report. And leasing action across Miami-Dade, Broward and Palm Seashore dropped to 3.6 million sq. feet in the fourth quarter, as opposed to 6.3 million sq. feet in the previous quarter.
At the exact same time, landlords once again raised the regular inquiring rent in South Florida’s industrial industry. In the fourth quarter of previous calendar year, they questioned for $13.16 a sq. foot, compared to $11.97 a sq. foot in the third quarter and $10.11 a sq. foot, calendar year-above-calendar year, Newmark identified.
Miami-Dade County
The emptiness fee in Miami-Dade jumped to 3.1 % in the fourth quarter of very last year, in comparison to 2.6 percent all through the exact interval in 2021, the report demonstrates. Tenant need dropped dramatically to 36,614 square feet in 2022’s last quarter, in comparison with 1.7 million sq. ft through the same period of time of 2021.
The normal inquiring hire rose to $13.37 a sq. foot in the fourth quarter, when compared to $9.96 a sq. foot during 2021’s fourth quarter.
Investment decision product sales volume fell to $1.5 billion in the last quarter, compared to $3.1 billion in the 3rd quarter of last calendar year. TA Realty’s $240 million order of a Medley industrial park in the very last quarter of 2022 represented the largest industrial offer in South Florida final 12 months.
Broward County
At 5.2 %, Broward had South Florida’s highest industrial emptiness charge in the ultimate quarter of last yr. Throughout the similar period of time of 2021, Broward’s emptiness charge was 4.7 percent, Newmark uncovered. Tenant need filled 172,224 sq. ft of Broward industrial room in the closing quarter of final 12 months, in comparison to 496,000 sq. feet of constructive absorption for the duration of the very same period of 2021.
Broward’s average inquiring lease climbed to $13.09 a square foot in the fourth quarter, as opposed to $11.27 a square foot in the preceding quarter and $10.14 a sq. foot, calendar year-above-yr, the report states.
Broward County’s investment decision revenue achieved $1 billion in quantity in the fourth quarter of 2022, up drastically from $816,000 in the third quarter. Past quarter’s major offer was Prologis’ $37.7 million acquisition of an industrial facility in Pompano Beach front. The sale was section of Prologis’ $23 billion all-stock acquire of Duke Realty.
Palm Seashore County
In the previous quarter of 2022, Palm Beach front County’s vacancy amount creeped up to 5.1 %, in comparison to 4.1 per cent through the same interval of 2021. The county’s industrial marketplace also posted a destructive absorption of 101,793 square ft, in contrast to 132,862 sq. ft of beneficial absorption, yr-around-12 months, in accordance to Newmark.
The regular asking rent dropped to $12.66 a sq. foot in the fourth quarter of last 12 months, as opposed to $13.07 a square foot in the preceding quarter, but increased than $10.87 a sq. foot in 2021’s fourth quarter.
Last yr, investment product sales volume in Palm Seashore County shot up to $541 million in the fourth quarter, when compared to just $803,000 in the prior quarter.
MG3’s $78 million sale/leaseback deal for a Walgreens distribution facility in Jupiter represented the major trade in Palm Seashore County in the course of the fourth quarter of past 12 months, the report states.
