The Rise of Miami’s Industrial Real Estate SectorAugust 16, 2012
While most people’s eyes are on the ever improving residential real estate sector in Miami, it seems as if many of the bigger developers are taking advantage of the region’s growing industrial sector, a theory that is evidenced by sales prices inching ever upwards, while vacancy rates continued to fall.
A closer look at the latest statistics for industrial real estate in Miami sees that there is something of a miniature boom taking place, especially at the city’s warehouse district near Miami International airport.
Just a few years ago, warehouse construction in Miami had all but ground to a halt, but today, such is the recovery that almost 1,000,000 ft.² of warehouse space is currently under construction in the city, or else is expected to break ground within the coming weeks.
One of the curious things to note is that many of the new industrial real estate development in Miami have been pushed through without any tenants in place, an unusual step that indicates investors have overwhelming confidence in the future of Miami’s industrial potential.
Real estate investors are the driving force behind Miami’s commercial real estate boom, as they see the city as one of the safest bets for their investments at the moment. Given the overall strength that has been displayed by Miami’s residential market so far this year, it’s not surprising that investors have come to this conclusion.
There are many underlying reasons why investors see Miami as such a safe haven for their cash. Lest we not forget, Miami enjoys the tremendous advantage of being an international hub situated on the Atlantic coast, a setting that makes it the natural gateway to the Americas for international trade. With its access to major world shipping lanes and numerous ports, Miami is an obvious location for corporations to set up their logistics base.