Avison Young Research for The Miami-Dade County industrial market for the third quarter was no surprise in reporting high absorption and low vacancy. But a closer look at it turned up Hialeah Gardens as part of the next push outward.
It’s a submarket approximately 10 miles north of Miami International Airport. Duke Realty purchased three newly constructed industrial buildings last year and, to date, has leased approximately 530,000 square feet to distribution-related businesses.
“Hialeah Gardens is seeing considerable activity, as it is one of the last natural expansion areas in Miami,” said Wayne Schuchts, a Principal in AY’s Miami office, assessing the market for GlobeSt.com.
“We are seeing significant activity from national and regional distributors that want to gain a foothold into any available location that can support their distribution needs and desire to tap into the airport and port locations,” he adds.
Some highlights of the report:
- Significant demand has pushed asking rents up by 11% over the past year, to $8.24.
- The county’s overall vacancy rate is just 2.77%, despite 1.4 million square feet being delivered in Q3 of 2018.
- There were 4.4 million square feet of new projects under construction in the quarter, 1.7 million of which are scheduled to be completed by year end.
- With a rush to find land sites, developers are moving inland and redeveloping some older properties.
- The strength of the Miami market continues to draw investors, who purchased 92 properties in Q3 for a total of $1.1 billion.