The CIASF recently held its signature 2014 Industrial Market Report event and presented the data-filled study to nearly 200 attendees.
The report uncovered several key data points relative to the very-active Miami-Dade industrial market:
-Although the market continues to improve, there is concern that rental rates and sales prices are reaching a peak. This results from an increase in the supply of quality industrial buildings coming online in 2014 and sales prices of existing buildings not supported by rental rates.
-The newer industrial buildings feature a minimum 30′ of clear interior height, 54′ wide column spacing allowing for 4 loading doors, rear-loading truck access with large parking aprons and easy truck access. Interior improvements include T-5 high-efficiency lighting systems combined with motion-activated switches, EFSR sprinkler systems, windows over the loading door for natural light and high-quality interior finishes in the office areas with 9 to 12′ ceiling heights.
-Strongest demand is for space between 10,000 square feet and 30,000 square feet. It also suggested that landlords should reposition larger blocks of vacant second-generation space, or older 24′ clear-height product and subdividing these larger vacant spaces into smaller bays in order to target smaller tenants in the market seeking from 20,000 to 50,000 square feet.
-Some landlords are offering a Rent Abatement. Typically, tenants are able to receive one month of total free rent for every three years of lease terms and two months free rent for every five years of the lease term.
-Unlike previous years, the data collected indicated that manufacturing is on the rise. Latin American companies are moving their operations to Miami-Dade for political and economic reasons. These include food processing and aviation companies. In addition, medical drug and equipment manufacturing is active with some tenants purchasing their own facilities.
-The market continues to improve, with lower vacancy rates, rental rates $.50 to $1.00 per square foot higher than last year and continued demand for industrial space from both a rental market and purchase market perspective.
-Tenants seem doubtful that the new Panamax ships and larger port will benefit them directly. However, there is evidence of a greater potential of perishable goods needing cooler space as the goods pass through from South America.