A logistics company with warehouse and distribution centers across the globe has closed on a leasing deal for an industrial building in Hialeah that has not yet been built.
Erie, Pennsylvania-based Logistics Plus will occupy an entire 181,051-square-foot warehouse at 9535 N.W. 174th St. within Miami Midway Park. The 42-acre industrial project is now being developed by Coconut Creek-based Butters Construction & Development and Charleston-based Greystar.
The global COVID-19 pandemic thrust industrial real estate into the spotlight as more people shopped from home, creating a seemingly insatiable demand for warehouse and logistics space to store and move the goods they ordered.
As a result, rent for industrial properties increased 6.3% in 2022 to $7.03 per square foot, and the market set a record for 450 million square feet of new space delivered, according to Commercial Edge’s January industrial report.
Some dynamics of logistical and industrial space leasing are feeling pressures of inadequate supply, according to a panel of NAI Global industrial and logistics real estate experts meeting virtually.
Although demand pacing ahead of supply had become expected by partway through the pandemic — industrial with multifamily being the two darling property types for owners and investors — many markets have become weaker. A recent Cushman & Wakefield study found that industrial had shown signs of slowing down in the fourth quarter of 2022. Only five of 81 tracked markets posted double-digit quarterly increases, although some bright spots such as Charleston, Inland Empire, Phoenix, and Miami all recorded annual gains of 40% or higher. Coastal and port/population-proximate markets continued to see premium pricing.