E-commerce tenants are forcing industrial developers to build warehouses with interior ceilings taller than 30 feet and larger parking lots to accommodate idle tractor trailers and delivery vehicles, according to a panel of experts.
After several years of strong absorption in leasing and robust sales volume, there’s no question that Miami’s industrial real estate market is the desired location for national tenants and institutional investors alike.
But many insiders are questioning if sustaining that level of growth is possible and if there are still profitable transactions to be found.
The industrial sector flourished in 2017.
Real estate research firm Real Capital Analytics (RCA) noted in a recent report that the industrial sector, seeing gains from rising e-commerce sales and the resulting need for industrial facilities, was the only commercial real estate sector last year that saw an increase in transaction activity from January through November.
NREI discussed possible trends to look out for in 2018 with several market observers.