The South Florida Industrial market ended the second quarter 2017 with a vacancy rate of 3.9%.
The vacancy rate was up over the previous quarter, with net absorption totaling positive 599,281 square feet in the second quarter. That compares to positive 1,095,827 square feet in the first quarter 2017. Vacant sublease space increased in the quarter, ending the quarter at 785,915 square feet.
The Flex building market recorded net absorption of positive 133,038 square feet while the Warehouse building market recorded net absorption of positive 466,243 square feet in the second quarter 2017.
The largest lease signings occurring in 2017 include the 342,750-square-foot lease signed by BEL USA LLC at Medley Logistics Park – Bldg 200 in the Medley market and the 182,000-square-foot deal signed by Dependable Packaging Solutions at 5255 NW 159th Street in the Miami Lakes market.
Rental rates ended the second quarter at $9.80, an increase over the previous quarter.
A total of 14 buildings delivered to the market in the quarter totaling 1,456,539 square feet, with 4,441,661 square feet still under construction at the end of the quarter.
This trend is compared to the U.S. National Industrial vacancy rate, which decreased to 5.1% from the previous quarter, with net absorption positive 71.76 million square feet in the second quarter. Average rental rates increased to $6.22, and 537 industrial buildings delivered this quarter totaling more than 64.4 million square feet, with almost 272.4 million square feet still under construction.