Warehouses are sprouting in some unexpected neighborhoods. Convenience is the key.
Companies looking to store consumer goods in Miami are searching for sites adjacent to the typical airport locations — closer to population centers. So, where are they going?
Opa-locka and Miami Gardens, said Brian Smith, South Florida managing director and industrial head of real estate services firm JLL, speaking at the JLL Sunshine State of the Market event on Wednesday.
Speculative development is going up in the two neighborhoods, said Audley Bosch, managing director with JLL South Florida’s industrial team. And that trend is pushing up lease rates.
“Opa-locka and Miami Gardens is where industrial demand exists today,” Smith said.
Since 2015, rates in Miami Gardens and Opa-locka have increased from $6 per square foot triple net to $8.50 per square foot triple net, Bosch said.
.jpg)
Demand for warehouse space is being driven by population growth across the state. In 2019, the Miami metro area gained about 94 new residents each day. Tourism, trade and the explosion of e-commerce are factors.
Miami Gardens and Opa-locka are convenient to Miami International, Fort Lauderdale-Hollywood International, PortMiami and Port Everglades, while other neighborhoods may only be close to one airport or port, Bosch said.
“Because of how traffic gets, it’s become increasingly important to be centrally located,” Bosch said.
Industrial projects include Gateway Commerce Park by Mississippi-based EastGroup Properties, which was built on spec. And more warehouse development is coming to Miami Gardens and Opa-locka, Bosch said. Real estate investment trusts Illinois-based Bridge Development Partners and California-headquartered Prologis are expected to add more industrial buildings soon.
The expansion of industrial real estate in South Florida is leading some companies, including Prologis, to train a potential labor force to work in the industry.
