space tightens in Miami, lease rates rise
with Latin America and an influx of telecommunications and dot-com
companies are proving a bonanza for the industrial market in Miami-Dade,
according to mid-year reports.
two forces are driving vacancy levels down to single digits in most
areas of the county while the scarcity of space is inflating rental
industrial sector continued into the year 2000 with the same incredible
momentum it experienced in 1999," says Market Beat Update, a
quarterly publication of Cushman & Wakefield's research services.
"It has continued to outperform all other counties in leasing
and sales activity with a little over 6.3 million square feet of recorded
transactions as of mid-year."
county has 32.3 million square feet of investment-grade space, says
Trammell Crow's Market Scope South Florida Mid-Year 2000, with nearly
667,000 square feet under construction and another 12.6 million proposed.
market has grown at staggering rates over the last decade," this
report notes, "largely due to Miami's proximity to Latin America
and the Caribbean, which enabled it to become a gateway city and hub
for international trade."
vacancies across the county hover around 7%, both reports show, with
the average gross rental rate about $6.90 a square foot.
& Wakefield's breakdown by property types shows 83% of available industrial
space is warehousing, 12% manufacturing and 5% office.
new category rapidly gaining ground, particularly in Airport West,
is space custom-designed for high-tech industries.
new technology industry is making its presence known primarily at
Beacon TradePort and Beacon Centre," says Cushman & Wakefield's
report. LightSpeed Infrastructure's LightSpeed Center at Beacon TradePort
and Doral Commerce Park are examples of new development built solely
to suit this industry, it notes.
was highest, Trammell Crow researchers say, in buildings in business
parks, with rear-loading capacity, high ceiling clearance and abundant
inevitable result, Cushman & Wakefield's report says, is that lease
rates in Airport West already the highest in the county at
an average of $7.09 a square foot are being driven upwards.
typical warehouse space ranges in the area of $6.35 a square foot,"
Market Beat Update says, "telecommunications space draws from
$10 a square foot upwards to $20 a square foot."
Miami Lakes-Hialeah market, second largest in the county, shows the
lowest vacancy at 2.48%, according to Market Scope.
the third largest, "has captured the attention of large national
tenants seeking to expand, relocate or establish a new Miami base
to serve the South American export market," Trammell Crow says.
reasons for this, it speculates, are the existence of a bilingual
workforce and sizable industrial land sites available.
availability of land and correspondingly low lease rates an
average of $5.18 a square foot for manufacturing space, ranging to
$12.15 for office-service flex space makes Medley the chief
competitor to Airport West, Cushman & Wakefield's report says.
market showing impressive leasing and sales activity this year, says
Market Beat Update, is North Central Dade a total of 1.3 million
area, which surrounds Opa-locka Airport, has 18,750 square feet under
construction. But the 178-acre Renaissance Park, a class-A, master-planned
business park now in the planning stages, could raise inventories
area likely to benefit from telecommunications and high-tech activity,
says Cushman & Wakefield, is Homestead.
95 miles of fiber-optic cable will be installed there this fall to
make the city high-tech ready for business and economic development,"
Market Beat reports.
these industries continue to thrive, the report concludes, it will
change the nature and face of warehousing.