Demand rose sharply for South Florida warehouse space this year. Here’s why
Warehouse leases are up by 37% year-over-year, thanks to the strength of the South Florida economy and the popularity of remote work.
The number of new warehouse leases and renewals grew from a total of 867 deals in the first six months of 2020 to 1,186 transactions a year later for Miami-Dade County, Broward and Palm Beach, according to Newmark’s latest South Florida industrial market report. Tenants leased a total of 13.3 million square feet in 2021 thus far — about 62% more space than the total 8.2 million square feet during the same time last year.
“The South Florida economy has recovered nearly better than any other market in the United States, because our economy was kept open,” said Nick Wigoda, executive managing director of Newmark Grubb Knight Frank.
Florida Gov. Ron DeSantis eased COVID-19 restrictions and opened the economy in the spring of 2020, only a few weeks after issuing a stay-at-home order.
Pilot Freight, Amazon, Agility Logistics and healthcare company Owens & Minor signed the largest leases in Miami-Dade and Broward.
Companies are filling the space with home furnishings, building supplies — new windows and doors, for example — and food and beverages, Wigoda said, with many people still working from home and venturing out to dine.
The average asking rents grew alongside demand. Miami has an average asking rent of $8.79 per square foot, up from a $8.26 per square foot during the second quarter 2020. Broward has an average asking rent of $9.66 per square foot, higher than the second quarter 2020 with $9.59 per square foot.
Given the increase of the population since last year, Wigoda said, “Miami still has a lot of growth as a market.”
This story was originally published July 19, 2021 at 4:07 PM.
