PSBP VP of the Southeast Division Viola Sanchez tells us after completion of the new Port of Miami tunnel in the second quarter, South Florida industrial market fundamentals are strong, with falling vacancy rates and rental rates on the rise. “Although we’re seeing inventory coming on the market, there’s still a good balance,” she says, though she predicts more demand, which will put landlords in a better position: “We’re starting to see businesses expand as owners are feeling bullish, which is making them want to pull the trigger.” The new product will add state-of-the-art buildings to the market, and while there’s definitely demand for more modern product, Viola tells us, the test for the market will be how fast will this new inventory be absorbed and its effect on rental rates.
“Overall fundamentals for both the Airport and Port have been stronger than previous cycles, and 2015 is expected to continue the momentum,” Viola continues. PSBP is the owner of the Miami International Commerce Center, and she reports a flurry of recent leases: Rosy Services (28k SF), SED International (18k SF), Boreal International (17k SF), Miami Olive Oil (5,500 SF), Navi International (5,400 SF), and Claridge Distributions (2,100 SF), and all but one are long-term leases. “Right now it’s good to be an owner of industrial real estate, especially in the small-to-medium range,” Viola says.
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