Research & Forecast Report

MIAMI-DADE COUNTY | INDUSTRIAL

Fourth Quarter 2019

Large Leases and Portfolio Sales Dominate Fourth Quarter

Activity in Miami-Dade County’s Industrial Market
Executive Summary
E-commerce has been the main driver behind the increasing size
of industrial tenant leases as evidenced throughout South Florida. Summary Statistics
Q4 2019 Industrial Market Miami-Dade, FL
Miami-Dade County has seen the top three leases, for two consecutive
quarters, above 100,000 square feet. This quarter, large leases include Vacancy Rate 4.1%
American Fine Food Corp at International Corp Park (145,855 square
Change From Q3 2019
feet), Apollo Export Warehouse at Airport North Logistics Park (120,590 (Percent)
0%
square feet), and HAPCOR at Bridge Point Commerce Center (114,808 Absorption
(Square Feet) 952,450
square feet). Despite the large size of deals signed, the vacancy rate
remained unchanged quarter-to-quarter at 4.1 percent. Leasing activity New Completions
(Square Feet) 878,321
was strong in the fourth quarter of 2019 as 878,320 square feet
Under Construction
delivered to the market while still achieving a positive net absorption of (Square Feet) 4,277,133
952,450 square feet.
Warehouse/Distribution Asking Rents
A new pocket of development in the Miami Airport North/Medley Per Square Foot Per Year
submarket accounted for all of the delivered square feet in Miami-Dade
Current Quarter $9.80
County this quarter. One building in Beacon Logistics Park (147,768
square feet), three buildings in Countyline Corporate Park (totaling Previous Quarter $10.05
653,033 square feet), and the warehouse at 14600 NW 112th Avenue Year Ago $11.10
(65,520 square feet) delivered. Four buildings in that area remain under Change from Q3 2019 -2.5%
construction and are expected to be completed in 2020. Countywide,
more than 4.2 million square feet, a majority of which are distribution
Market Trends
buildings, are currently under construction. Two manufacturing Relative to Prior Period Q4 2019 Q1 2020*
facilities are under construction, one in Homestead and another for
SeaVee Boats in Medley is expected to be completed mid-2020. Vacancy

Net Absorption
Sales activity for industrial properties in Miami-Dade County was
Construction
strong in the fourth quarter of 2019 with the top three sales being
portfolio deals, the Prologis deal, a joint venture deal, and the Brookfield Flex Rental Rate
Property Group deal. In Opa-locka, the 100 percent occupied Ave Industrial Rental Rate
Aviation & Commerce Center was sold to a joint venture between Note: Construction is the change in Under Construction.
Bridge Development Partners and BentallGreenOak for $126 million. *Projected.

A 20-acre site at 3000 NW 123rd Street in Opa-locka was purchased

by Panattoni Development Company for $24.3 million, or $1.2 million
per acre. The site was purchased for a new industrial development to
be known as Gratigny Logistics Park. Nearby, the same developer is
completing construction of Eastview Commerce Center. The 800,000
square foot business park is already more than 50 percent pre-leased, Completions, Absorption and Vacancy Rates
an encouraging sign for new construction in the Miami-Dade County
industrial market. Net Absorption Completions Vacancy

2,000 4.2%

Vacancy Rate
Market Highlights 1,800
1,600
4.1%
4.1%

Square Feet (Thousands)

>> Oversupply is not presenting a threat in the Miami-Dade County 1,400 4.0%
industrial market, represented by the unchanged vacancy rate and 1,200 4.0%
large positive absorption. 1,000 3.9%
800 3.9%
>> The three largest sales of the quarter were portfolio deals, 600 3.8%
reaching prices as high as $200 per square foot. 400 3.8%

>> Miami-Dade County continued to see leases larger than 100,000 200 3.7%
0 3.7%
square feet, as e-commerce continues to shape the industrial 2018 Q4 2019 Q1 2019 Q2 2019 Q3 2019 Q4
market.

South Florida - Industrial Market Trends

Stabilizing Vacancy Rates
Emerging Industrial Trends in 2019 and an Outlook for 2020 In the fourth quarter, Miami-Dade County’s industrial vacancy rate is
unchanged from the previous quarter at a stable 4.1 percent. Demand is
>> Global Trade: Despite global trade woes, South Florida continues
progressing with supply as net absorption keeps up with completions.
to increase trade through exports and imports year-over-year.
Source: Colliers International, CoStar
>> Amazon: Amazon has made its mark in South Florida and across
the state with major distribution centers.
Unemployment Trends
>> Population Growth: Robust population growth has fueled demand
for industrial product, as new housing development continues at a
Florida Miami-Ft Lauderdale-West Palm Beach MSA USA
rapid pace. 10.0%
Unemployment Rate

>> Elevated Construction: Construction has been elevated over 9.0%

the past few years, but oversupply is not a concern as demand 8.0%
remains high.
7.0%

>> Last Mile Logistics: South Florida is at the forefront of shifting 6.0%

retail landscapes and service deliveries, fueling demand for 5.0%

product near dense population centers.
4.0%

>> Modern Facilities: With space constraints, developers are 3.0%

exploring creative opportunities such as infill and possibly
Aug-13

Aug-14

Aug-15

Aug-16

Aug-17

Aug-18

Aug-19
Nov-12
Feb-13
May-13

Nov-13
Feb-14
May-14

Nov-14
Feb-15
May-15

Nov-15
Feb-16
May-16

Nov-16
Feb-17
May-17

Nov-17
Feb-18
May-18

Nov-18
Feb-19
May-19

Nov-19
multistory facilities.
>> Strong Demand: A positive outlook continues with ecommerce The Miami-Fort Lauderdale-West Palm Beach MSA unemployment rate
and population growth driving demand. posted 2.7 percent* in November 2019, representing a 12.9 percent
decrease from November 2018. The state of Florida rate posted a 3.1
>> Vacancy Rate: Despite elevated construction, vacancy rates percent* unemployment rate for November 2019,* below the national
remain low which in turn has driven up rents. average of 3.5 percent.

*preliminary

Source: US Bureau of Labor Statistics

2 South Florida Research & Forecast Report | Q4 2019 | Industrial | Colliers International
 SUBMARKET BREAKDOWN
SUBMARKET & # OF TOTAL DIRECT TOTAL NET ABSORP. NEW UNDER AVG. GROSS DIRECT
PROPERTY TYPE BUILDINGS INVENTORY SF VACANT % VACANT % CURRENT QTR. SF COMPLETIONS SF CONSTRUCTION SF ASKING RATE

Miami Airport West

Warehouse & Distribution 746 36,002,927 3.9% 4.6% 365,939 0 398,313 $10.36
Manufacturing 23 1,968,108 2.6% 2.6% (11,440) 0 0 $10.00
Office Services 133 5,427,188 2.2% 2.2% 34,845 0 0 $13.95

Miami Airport North/Medley

Warehouse & Distribution 805 41,371,733 5.2% 5.5% 124,753 878,321 1,209,582 $8.32
Manufacturing 65 3,530,048 0.5% 0.5% 4,000 0 220,000 -
Office Services 61 2,071,005 1.1% 1.1% (1,723) 0 0 $17.50

Central Dade
Warehouse & Distribution 217 4,846,343 6.9% 7.0% (39,983) 0 0 $17.17
Manufacturing 12 330,017 0.0% 0.0% 0 0 0 -
Office Services 17 654,882 17.2% 17.8% (18,018) 0 0 $19.30

Northeast Dade
Warehouse & Distribution 627 30,310,926 3.3% 3.4% 193,248 0 1,752,518 $8.19
Manufacturing 48 2,963,324 0.2% 0.2% 0 0 0 -
Office Services 37 1,228,777 5.9% 6.0% 43,059 0 0 $12.66

Miami Lakes/Hialeah
Warehouse & Distribution 884 29,297,929 3.5% 3.7% 8,947 0 417,880 $9.16
Manufacturing 148 7,009,864 4.0% 4.0% 7,631 0 0 $7.00
Office Services 42 1,606,104 5.0% 5.0% 2,284 0 0 $13.57

Miami-Airport East/Downtown
Warehouse & Distribution 670 25,535,988 4.2% 4.5% 277,758 0 0 $13.88
Manufacturing 35 1,498,376 2.2% 2.2% (14,528) 0 0 -

Office Services 47 1,885,914 8.2% 8.2% (3,625) 0 0 $23.93

South Dade
Warehouse & Distribution 650 16,412,487 1.4% 1.7% (39,395) 0 38,000 $12.71
Manufacturing 32 872,010 0.2% 0.2% (930) 0 200,000 $12.84
Office Services 113 2,680,843 2.6% 2.6% 19,628 0 40,840 $12.09

MIAMI-DADE COUNTY OVERALL MARKET

NET ABSORP. NEW UNDER WHSE. AVG. MFG. AVG. FLEX AVG.
QUARTER & # OF DIRECT TOTAL NET ABSORP.
TOTAL INVENTORY SF CURRENT QTR. COMPLETIONS CONSTRUC. GROSS DIRECT GROSS DIRECT GROSS DIRECT
YEAR BUILDINGS VAC. VAC. YTD SF
SF SF SF ASKING RATE ASKING RATE ASKING RATE
2019 Q4 5,418 217,645,984 3.8% 4.1% 952,450 2,133,256 878,321 4,277,133 $9.80 $8.55 $19.32
2019 Q3 5,413 216,802,663 3.9% 4.1% 343,935 1,180,806 792,351 3,837,105 $10.05 $8.50 $18.43
2019 Q2 5,410 216,048,265 3.8% 4.0% 263,595 836,871 685,223 4,430,046 $10.29 $8.78 $19.61
2019 Q1 5,403 215,363,042 3.6% 3.8% 573,276 573,276 426,776 4,508,542 $9.78 $8.78 $16.58
2018 Q4 5,404 215,009,867 3.7% 3.9% 1,320,508 3,165,559 1,754,556 2,764,604 $11.10 $10.30 $19.88
2018 Q3 5,396 213,266,111 3.6% 3.7% 854,721 1,845,051 571,891 4,372,559 $11.18 $11.43 $19.73
2018 Q2 5,394 212,840,700 3.7% 3.9% 1,053,175 990,330 880,548 4,298,289 $10.09 $11.72 $18.04
2018 Q1 5,391 212,161,366 3.9% 4.0% (62,845) (62,845) 746,912 3,477,091 $10.16 $14.22 $18.55
2017 Q4 5,394 211,631,030 3.6% 3.8% 474,742 2,348,611 409,935 3,756,486 $9.91 $11.04 $18.73
2017 Q3 5,392 211,351,628 3.7% 4.0% 504,092 1,873,869 796,255 4,022,515 $10.10 $11.77 $18.22
2017 Q2 5,388 210,577,590 3.7% 3.8% 605,238 1,369,777 1,183,807 3,755,541 $10.01 $10.65 $17.37
2017 Q1 5,382 209,421,545 3.5% 3.6% 764,539 764,539 525,787 4,362,519 $9.40 $8.60 $16.83

3 South Florida Research & Forecast Report | Q4 2019 | Industrial | Colliers International
SALES ACTIVITY
PROPERTY SALES PRICE ($PRICE/
PROPERTY NAME & ADDRESS BUYER NAME SIZE (SF) SUBMARKET
TYPE SF)

Prologis Acquiring Liberty Property Trust 2019 (7 of 348 Miami Airport North/
Mixed Prologis 1,150,262 $222,800,000 ($198)
Properties) Medley
JV BentalGreen Oak/
CPF Miami Industrial Portfolio 2019 (2 of 3 Properties) Distribution 946,086 $126,000,000 ($100) Miami Lakes/Hialeah
Bridge Dev Partners
Brookfield Property Miami Airport East/
Brookfield Property Portfolio (6 Properties) Warehouse 412,844 $82,900,000 ($201)
Group Downtown
Miami Airport North/
Countyline Building 8- 3870 W 104th Street Warehouse Duke Realty Corp 241,187 $39,050,000 ($162) Medley

Fallic Fashion Group Building- 1000 SE 8th Street Distribution Wheelock Street Capital 234,146 $26,800,000 ($114) Miami Lakes/Hialeah

Fmr Dean Foods- 3000 NW 123rd Street Warehouse Panattoni Development 61,068 $25,000,000 ($409) Northeast Dade

LEASING ACTIVITY
PROPERTY NAME & ADDRESS SPACE TYPE TENANT NAME SIZE (SF) LEASE TYPE SUBMARKET

American Fine Food

International Corp Park - 9835 NW 14th Street Distribution 145,855 New Sublease Miami Airport West
Corp.
Airport North Logistics Park - 8503 NW 80th Street, Miami Airport North/
Distribution Apollo Export Warehouse 120,590 New
Bldg 2 Medley

Bridge Point Commerce Center- 4310 NW 215th Street Warehouse HAPCOR 114,808 New Northeast Dade

Merchandize
701-705 E 10th Ave Manufacturing 82,000 New Miami Lakes/Hialeah
Liquidators, Inc.
SPR Global Storage &
Beacon at 97th Avenue- 2000 NW 97th Avenue Warehouse 80,000 New Miami Airport West
Logistics

4 South Florida Research & Forecast Report | Q4 2019 | Industrial | Colliers International
INDUSTRIAL
SUBMARKET MAP

NORTHEAST
DADE

MIAMI
AIRPORT N /
MEDLEY
MIAMI LAKES /
HIALEAH CENTRAL
DADE

MIAMI AIRPORT
WEST MIAMI AIRPORT EAST /
DOWNTOWN

SOUTH DADE

5 South Florida Research & Forecast Report | Q4 2019 | Industrial | Colliers International
 JACKSONVILLE

GAINESVILLE

17,000 professionals in
ORLANDO

68 countries CLEARWATER
TAMPA BAY

• US $3.3 billion in annual revenue

SARASOTA
• 2 billion* square feet under management
• 69,000 total sale/lease transactions
• $127+ billion USD in total transaction value
WEST PALM BEACH
*Square footage includes office, industrial and retail property un- FORT MYERS
der management. Residential property is excluded from this total.
All statistics are for 2018. BOCA RATON

FORT LAUDERDALE

CORAL GABLES

SOUTH FLORIDA REGIONAL OFFICES

Coral Gables Fort Lauderdale Boca Raton West Palm Beach

2121 Ponce de Leon Boulevard 200 E Broward Boulevard 2385 NW Executive Center 901 Northpoint Parkway
Suite 1250 Suite 120 Drive, Suite 350 Suite 109
Coral, Gables, FL 33134 Fort Lauderdale, FL 33301 Boca Raton, FL 33431 West Palm Beach, FL 33407
Tel: +1 305 854 7342 Tel: +1 954 652 4600 Tel: +1 561 353 3650 Tel: +1 561 478 6400
Fax: +1 786 735 3178 Fax: +1 954 667 7945 Fax: +1 561 353 3651 Fax: +1 561 353 3651

CONTRIBUTORS
Ryan Kratz | President, Southeast Region | ryan.kratz@colliers.com
Verity Mosquera, MBA | Research & Consulting Manager, South Florida | verity.mosquera@colliers.com
Haley Boatright | Research Analyst, South Florida | haley.boatright@colliers.com

www.colliers.com/southflorida
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South Florida Research & Forecast Report | Q4 2019 | Industrial | Colliers International
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