CBRE just released its preliminary Q2 2014 results for the 13 major U.S. metro markets, and Miami outshined many other markets once again - particularly in the industrial sector, where vacancy dropped to 6.6%. Miami now has the second-strongest industrial market in the nation just behind Los Angeles. So why is Miami's industrial market on fire?
The Great Sunbelt Migration - Population growth is the number one driver for demand for industrial space, and from 2008 to 2013, Miami-Dade County's population grew at an average rate of 1.4% per year, well above the national average annual rate of 0.8%. And as retailers start putting distribution centers closer to major metro areas, where they can achieve same day delivery (retail giant Amazon is close to signing a lease in South Florida), the demand for warehouse space is only likely to increase.
Gateway to Latin America - Consumption is up around the world, and a good chunk of the world happens to be located in the Caribbean, and Central and South America. Latin America is embarking on a new era of consumption, according to Latin Trade magazine. From 2010 to 2020, the number of working age Latin Americans will grow by 41 million people (meaning more demand for discretionary spending items like computers, cars and travel). It also boasts the fastest-growing population of internet users in the world.
World Class Infrastructure - While we can't ignore the expansion at PortMiami, Miami International Airport is the primary driver of growth in our industrial market and it's booming. It's the number one ranking U.S. airports in terms of international air freight (and number three in terms of overall air freight). Approximately 1.2 million tons of freight came through our airport in 2013. Brazil, Colombia and Costa Rica are our top trade partners by total value in U.S. dollars.
By: Ken Krasnow
Managing Director | CBRE South Florida
Ken Krasnow is the Managing Director for CBRE’s South Florida offices. In 2013, his region executed over 1000 transactions – 175 sales, and 825 leases – with an aggregate value exceeding $2.8 billion. In addition, CBRE South Florida completed over 1,400 valuation and advisory assignments and $600 million in loan originations.
Follow CBRE on Twitter: @cbre_Florida
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