Supply Chains Place Southwest Florida’s Industrial Properties in High Demand


There has never been a better time to be a landlord of industrial properties in Southwest Florida. According to recently released reports, industrial landlords experienced bountiful returns in the first quarter.

Despite developers adding about 11,000,000 square feet of warehouses and industrial space over the past three years, in Miami-Dade county, demand continues to outpace progress. According to reports, during the same three-year span, the industrial sector absorbed over 15,000,000 square feet, about 4,000,000 square feet more than was developed.

Broward County also experienced high demand. E-commerce tenants in the area rushed to lease available warehouses, and existing tenants extended their leases because of the limited supply of buildings.

Finally, in Palm Beach County, a lack of available spaces and new developments led to a leasing volume slowdown. The slowdown was not a result of disinterest but of too high of a demand.

The high demand and low inventory resulted in another quarter of rent increases in the tri-county region. At HML Solutions, we know that landlord profits in the area are increasing investor interest in the tri-county area. Before we delve into how we can help make your investor dreams come true, it is crucial to understand the markets in this region of Florida.

Reports Out of Miami-Dade County

Last year in Miami-Dade County, tenants absorbed over 370,000 square feet of industrial space. During the most recent quarter, the absorption rate jumped to 1,300,000 square feet, nearly quadruple the same time last year. With about 4,000,000 square feet still under construction, the country maintains high hopes for greater success in the future.

The county is not the only one sharing in the optimism. Recently, Link Logistics, a Blackstone subsidiary, announced plans to develop an industrial complex comprising 12 buildings in Miami Gardens, specifically on the former site of the horse racing track at Calder Casino.

For future investors, the industrial marketplace is looking good in Miami-Dade County. The vacancy rate shrank from 6% during the first quarter last year to 2.6%, according to the stats on the most recent quarter. Additionally, rents increased from $7.60 a square foot in 2021 to $11.61 currently, an increase of 52.8%.

Reports Out of Broward County

While the statistics are not as impressive for Broward County, the area still experienced a significant shift from last year. During the first quarter of 2021, tenants absorbed more than 550,000 square feet of industrial space. In the first quarter of 2022, Broward experienced a record-breaking absorption of more than 850,000 square feet.

The county achieved a vacancy rate of 4.2%, matching pre-pandemic numbers, and the shrinkage is only expected to continue. During the same quarter last year, 2021, the vacancy rate was 7.9%.

Like Miami-Dade County, Broward County is experiencing rent increases because of increased demand. Last year, rent was around $8.50 per square foot. Currently, rents increased to approximately $11.00 per square foot.

Again, interest in the area is growing. Arkadia Property Group recently partnered with Barings to purchase an industrial complex in Coral Springs for over $30,000,000.

Reports Our of Palm Beach County

Palm Beach Country saw an absorption rate increase of more than 50% in the last year. During the most recent quarter, tenants absorbed more than 135,000 square feet, more than double the over 52,000 square feet at the same time the previous year.

With more than 321,000 square feet of industrial space under construction, rent increases are expected to continue. Woodmont Industrial Partners is only one of the investors looking to capitalize on the growing health of the Southwest Florida market. The organization purchased 116.6 acres for over $40,000,000 to build a business park consisting of eight Class A buildings.

With a vacancy rate of 4.5% and a rent increase of 12.6% over the last year, the Palm Beach area is looking ripe for investors. Are you ready to invest?

Contact Our Experts for Financial Assistance and Industry Insight

HML Solutions has the loan programs and financial products you need to dip your investment toes in the Southwest Florida industrial market. We offer short-term and long-term loan programs to qualified investors, making your investment goals a possibility. Contact our team to discuss your plans and find out how we can help.

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