South Florida’s industrial market place finished the fourth quarter of previous yr with a seismic shift in ownership of 1.4 million sq. toes in Miami-Dade and Broward counties.
Boston-based Longpoint Partners obtained 25 industrial properties in eight metropolitan areas from Conshohocken, Pennsylvania-dependent Seagis. Longpoint’s $262 million portfolio invest in clocked in as the priciest industrial deal of 2023 — a indication that South Florida warehouses continue to be a best focus on for institutional traders.
Industrial qualities arguably characterize a harmless wager, provided traditionally minimal one-digit emptiness rates and a continuing trend of increasing inquiring rents, in accordance to a the latest CBRE report.
The tri-county area professional a slight uptick in empty warehouse spaces in the fourth quarter, even though tenant need continues to be large — except in Broward. Nevertheless, industrial landlords kept growing inquiring rents, the report shows.
Miami-Dade County
In the fourth quarter, the vacancy level rose to 3.2 %, compared to 2.6 p.c through the identical time period of 2022, CBRE observed. The average inquiring rent rose to $15.50 a sq. foot from $15.05 a sq. foot in the 3rd quarter. It also greater by practically 16 per cent when compared to $13.37 a sq. foot for the duration of the fourth quarter of 2022.
Miami-Dade’s slight raise in vacancies was due to approximately 5.4 million sq. toes of new industrial place turning into obtainable previous yr, the report states. About 80 p.c has been leased to day.
San Francisco-based Prologis scored 1 of the biggest industrial lease signings of the fourth quarter. Packing and shipping company Ameriworld Achievement signed a new 10-calendar year lease valued at $25.2 million for 124,000 sq. ft in an industrial sophisticated in the vicinity of Miami Intercontinental Airport owned by Prologis.
Broward County
The emptiness amount in Broward remained rather unchanged, hitting 3.5 % in the fourth quarter, in comparison to 3.7 % during the exact time period of 2022, CBRE uncovered. The normal inquiring rent jumped by 20 cents to $15.65 a square foot, in comparison to $15.45 a square foot all through the third quarter of previous calendar year. It also elevated by around 11 percent in comparison to $14.14 a square foot during the fourth quarter of 2022.
During the 2nd fifty percent of last calendar year, tenant desire was somewhat weak in Broward, but the county has a confined provide of industrial room, which led to the average inquiring hire growing, the report states.
In Oct, All Glass Output signed the 2nd greatest industrial lease of 2023. The glass producing organization leased a virtually 250,000-sq.-foot warehouse at South Florida Logistics Heart in Pembroke Pines. The assets is owned by Denver-based mostly Sagard Real Estate.
Palm Beach County
Palm Seashore County knowledgeable the most significant maximize in readily available area, with the vacancy price hitting 4.2 % in the fourth quarter, in contrast to 2.3 % for the duration of the identical interval of 2022, the CBRE report shows.
The normal asking hire rose by 25 cents to $15.75 a sq. foot, as opposed to $15.50 a sq. foot in the 3rd quarter. It also increased by 7.5 per cent in comparison to $14.65 a sq. foot all through the fourth quarter of 2022.
Palm Beach County’s industrial sector knowledgeable a gradual slowdown past calendar year, with vacancies increasing through 4 consecutive quarters, CBRE uncovered.
Bush Brothers Provision Enterprise, a meat packing and distribution business, signed a lease to move its headquarters into a 42,100-sq.-foot space at Royal Palm Logistics Middle, a new industrial venture in Royal Palm Seashore formulated by Orlando-centered McCraney House Company.
