Miami-Dade Industrial Market Report

Robust tenant demand spearheads construction wave. Space demand in Miami has risen to unprecedented levels, with net absorption figures outpacing deliveries by more than 1.5 million square feet in each of the past two years. Availability plummeted during this span as a result, falling to 1.9 percent entering 2023, the third-lowest rate among major U.S. markets. That feat is unlikely to be repeated this year as the recent boost in tenant demand has stimulated the largest supply wave in over two decades, with more than 7 million square feet underway as of January. Although the inventory increase may lift vacancy in the short run, industrial fundamentals are expected to remain tight for the foreseeable future, as speculative projects generally lease up quickly due to the scarcity of available space in the region. Firms specializing in aviation and food production, third-party logistics, building products and e-commerce are actively seeking space in response to the recent rise in population growth and business formation in Miami.