By: Ismael Rodriguez
There’s a correlation that links a flourishing e-commerce market and a growing population in Miami-Dade to new construction projects and booming industrial rents, with rental rates boosting up by 35 percent since 2010, according to a newly released report by JLL.
The report discovered that 7 million square feet of industrial space was consumed by Miami-Dade within the past two years. The results topped new construction and rental rates in other major markets like northern New Jersey, Seattle, Washington, and Oakland, California.
“Total local consumption in general is driving the market,” JLL Florida research manager Marc Miller told the press. “In many cases, the Miami area is the final destination of what is coming in through the ports.”
Miller believes that Miami’s success could be traced back to the fast-paced growth of its metropolitan population and the increasing popularity of e-commerce, fueling the demand for businesses seeking industrial warehouses for regional logistic operations like the recent expansion of Amazon fulfillment centers across Miami-Dade.
“Delivery trends show that more e-commerce companies are taking space near the urban core,” Miller told the press. “Because of the density of South Florida, it makes more sense to be in the region than rather being 100 miles away.”
The Miami market is also being supported by the influx of institutional investors and tenants like Amazon and john Deere, according to Miller. The JLL’s report found that institutional entities rally the most buyers in the Miami area, which recorded more than $680 million in total sales volume in 2016.
“From our perspective, Miami has really taken off in the eyes of investors and larger tenants in recent years,” Miller told the press. “Before it was smaller businesses and smaller local ownership. In the last three to four years, we have seen more sophisticated ownership coming in because of the economic drivers, as well as large scale warehouses users entering the market.”