Third Quarter 2017 / Industrial Market Report. Regional Economic Activity

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1 Third Quarter 207 / Industrial Market Report - County on Market Facts Remains a Hotbed of Industrial Activity 84.4 MSF Total inventory in the - industrial market 2,558,603 SF Direct net absorption YTD % Overall Vacancy $7.8 PSF Average asking lease rate for industrial space in - County on a triple-net basis Regional Economic Activity Demand for industrial space has grown stronger in recent years, supported by employment growth, capital market activity and improvements to the transportation and logistics infrastructure. As of August 207, - County s non-seasonally adjusted unemployment rate stood at 4.9%, 50 bps below the level recorded at year-end 206. Naturally, total employment is up as well. During the same period, total employment grew by nearly 50,000 jobs. Natural land constraints have led to supply limitations decreasing new lease activity and preventing the expansion of existing tenants in the market. The alternative for many companies and a necessity for new-to-market tenants is to lease space in newly delivered assets. These properties showcase highly sought after amenities including deep bays, ample dock-high doors and increased ceiling heights. Not only has this fortified - s economic and logistical fundamentals, but has resulted in an unprecedented period of industrial absorption. Preleasing Activity Remains Strong Year-to-date net absorption totaled 2.6 million sf. This is a direct result of newly-delivered pre-leased properties in prominent industrial parks such as South Florida Logistics Center, Prologis Beacon and Palmetto Business Park coming to market. One of the most notable examples is Trinton Logistics 75,000-sf commitment to the recentlycompleted Building 25 in Prologis Beacon. Many of these tenants are either newto-market or in search of high-quality industrial space that offers highly desired

2 - County Industrial Market Report Third Quarter 207 Due to tremendous growth, is now considered on par with many top performing U.S. markets. Total Deliveries $2.00 $0.00 $8.00 $6.00 $4.00 $2.00 $- $7.98 $0.0 $4.90 $0.59 $6.33 $6.57 Airport Central Medley Vacancy Rate 7% 6% 5% 4% 3% 2% % 0% 6.40% 5.90% 4.60% YTD Net Absorption (SF) 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000,000, % $7.06 North $8.2 South 2.90% amenities. The largest lease that took place in the third quarter of this year was Agility Logistics' 93,247-sf renewal of its existing location at Beacon Industrial Park. Port Cargo Up 8.5% in the last 2 months Over the last few years, has become a hotbed for industrial activity, attracting many institutional investors, logistics operators and e-commerce companies alike. Due to this tremendous growth, is now considered on par with many top U.S. markets such as Los Angeles, New York, Chicago, Atlanta and North Carolina. Boasting occupancy rates over 96%, - County has absorbed over 7 million sf of industrial space in the past 24 months. E-commerce and population growth are the primary contributors to the recent surge in demand. It is estimated that by 2020, s metro population is expected to surpass 6.2 million people. This coupled with the increasing popularity of e-commerce (as retail sales in the region are up 4% year-over-year) have been the main drivers of the strong performance and the most prominent force shaping future demand. Container cargo traffic has also experienced a recent increase. In the past 2 months, cargo traffic has increased 8.5% through Port, leading to increased infrastructure requirements. The port has stated that the growth is due in large part to the $.3 billion of infrastructure investments made in the port s facilities, including dredging the shipping channel and adding four post-panamax cranes which will allow the port to service larger cargo ships. Investment Interest Concentrated in Central Pricing and volume increases in s logistics market have revealed increasing investor interest throughout the third quarter. Sales remain strong as investors continue to pursue high-performing assets in centrally-located areas. Of the $590 million in total volume yearto-date, a majority was sourced from the Airport/Doral or submarkets. These areas remain highly desirable due to their central location, logistics capacity and access to major distribution hubs such as International Airport and Port. Looking Ahead remains one of the strongest industrial markets in the country. At a 3% vacancy rate, the local industrial market is among the tightest in the country. Tenant expansion and new tenants entering the market are expected to decline as supply becomes increasingly limited. As housing demand and the need for consumer goods continue to rise, development activity will remain active given the opportunity for site acquisition. Avison Young anticipates new deliveries to continue to drive the majority of new absorption and investment interest to thrive.

3 - County Industrial Market Report Third Quarter 207 County Bulk Distribution 30,95,084 2,285, ,295 $ % 7.57% 0.92% 8.50% 2,549,885 2,227,74 Flex 4,43,27 257,986 28,497 $ %.79% 0.20%.99% 0 36,043 Manufacturing 22,387,075 98,772 0 $ % 0.89% 0.00% 0.89% 0 (20,52) Warehouse / Distribution 7,369,834 2,602,90 64,979 $ % 2.22% 0.06% 2.27% 07,459 24,97 Total 84,383,20 5,345, ,77 $ % 2.90% 0.20% 3.0% 2,657,344 2,558,603 Airport Bulk Distribution,962, ,588 6,000 $ % 6.42% 0.97% 7.39% 766, ,240 Flex 7,684,3 92,755 25,930 $ %.2% 0.34%.54% 0 (3,260) Manufacturing 3,274,844 36,499 0 $ %.% 0.00%.% 0 67,47 Warehouse / Distribution 44,973, ,076 64,979 $ % 2.2% 0.4% 2.27% 0 563,47 Total 67,894,748,850,98 206,909 $ % 2.73% 0.30% 3.03% 766,200,098,544 Central Bulk Distribution 228, $ % 0.00% 0.00% 0.00% 0 0 Flex 53, $ % 0.00% 0.00% 0.00% 0 6,600 Manufacturing,88, $ % 0.00% 0.00% 0.00% 0 3,574 Warehouse / Distribution 7,770,529 43,456 0 $ %.85% 0.00%.85% 0 62,23 Total 0,330,879 43,456 0 $ %.39% 0.00%.39% 0 55,405 Bulk Distribution $ % 0.00% 0.00% 0.00% 0 0 Flex 58, $ % 0.00% 0.00% 0.00% 0 0 Manufacturing 6,344,92 27,400 0 $ % 0.43% 0.00% 0.43% 0 (27,400) Warehouse / Distribution 3,856, ,33 0 $ % 3.4% 0.00% 3.4% 59,959 (247,028) Total 20,360, ,73 0 $ % 2.27% 0.00% 2.27% 59,959 (274,428) Bulk Distribution $ % 0.00% 0.00% 0.00% 0 0 Flex,846,69 75,980 0 $ % 4.% 0.00% 4.% 0 35,77 Manufacturing 755, $ % 0.00% 0.00% 0.00% 0 0 Warehouse / Distribution 6,079,598 3,27 0 $ % 0.5% 0.00% 0.5% 0 (9,68) Total 8,68,360 07,07 0 $ %.23% 0.00%.23% 0 26,036 Medley Bulk Distribution 4,300, ,85 40,895 $ % 6.7% 0.99% 7.70% 0,3,523 Flex 60, $ % 0.00% 0.00% 0.00% 0 3,420 Manufacturing 3,254,00 68,873 0 $ % 2.2% 0.00% 2.2% 0 (67,473) Warehouse / Distribution,39,43 47,449 0 $ %.32% 0.00%.32% 47,500 (32,022) Total 29,304,867,76,73 40,895 $ % 4.0% 0.48% 4.49% 47,500,25,448 Bulk Distribution 989,200 68,92 0 $ % 6.97% 0.00% 6.97%,633,685 67,56 Flex,644,803 45,300 2,567 $ % 2.75% 0.6% 2.9% 0 34,700 Manufacturing 2,36,93 42,000 0 $ %.97% 0.00%.97% 0 0 Warehouse / Distribution 6,64,236 3,5 0 $ % 4.69% 0.00% 4.69% 0 55,286 Total,42,52 467,732 2,567 $ % 4.0% 0.02% 4.2%,633,685 57,547 North Bulk Distribution 2,477, ,583 22,400 $ % 9.76% 0.90% 20.66% 50,000 2,47 Flex,85,09 33,045 0 $ % 2.79% 0.00% 2.79% 0 5,92 Manufacturing 4,660,06 24,000 0 $ % 0.52% 0.00% 0.52% 0 (24,000) Warehouse / Distribution 23,272,253 46,555 0 $ %.79% 0.00%.79% 0 (46,768) Total 3,594, ,83 22,400 $ % 3.05% 0.07% 3.2% 50,000 57,56 South Bulk Distribution 237, $ % 0.00% 0.00% 0.00% 0 237,000 Flex 787,959 0,906 0 $ %.38% 0.00%.38% 0 5,954 Manufacturing 42, $ % 0.00% 0.00% 0.00% 0 0 Warehouse / Distribution 3,636,502 63,44 0 $ % 4.49% 0.00% 4.49% 0 (30,464) Total 4,803,69 74,320 0 $ % 3.63% 0.00% 3.63% 0 22,490 Reporting Methodology: This report includes all industrial buildings and parks 20,000 SF and greater in County that are not government owned. All rents are reported on a triple net basis. The information in this report has been collected by the Avison Young research team via sources that are deemed reliable but not guranteed.

4 - County Industrial Market Report Third Quarter 207 Leading Indicators (Y-O-Y 3Q-206 to 3Q-207) Increased container cargo traffic has led to greater infrastructure requirments. Vacancy Rate Net Absorption Average Asking Rate (FS) New Construction South Florida Labor Force 3.0% 2,558,603 SF $7.8/SF 2,657,344 SF 3.4 MM Significant Third Quarter 207 Lease Transactions - Sorted by SF Tenant Property Type SF Submarket Agility Logistics Beacon Industrial Park - Bldg 8 Renewal 93,247 Airport XPO Beacon - Bldg 3 New Lease 79,705 Airport Trinton Logistics Prologis Beacon - Bldg 25 New Lease 74,329 Airport Police Department Palmetto II New Lease 70,760 Airport Workscapes Inc. Int'l Business Park New Lease 50,000 Airport Global Perishables Services Int'l Corporate Park - Bldg 2 New Lease 32,042 Airport Significant Third Quarter 207 Sales Transactions - Sorted by Sale Price Property SF Sale Price Price/SF Buyer Submarket Winn Dixie Distribution Center 96,345 $59,000,000 $6 CenterPoint Airport International Center I 207,000 $23,500,000 $4 Seagis Property Group Airport Wesley Center 95, $7,800,000 $8 COFE Properties 6569 SW 7th Avenue 60,076 $7,096,300 $8 Spinel Investment Company South Milpa Center 98, $6,400,000 $80 COFE Properties 0005 NW 58th Street 52,633 $6,400,000 $22 Wadid Daoud Airport 0700 NW 36th Avenue 20,993 $5,390,000 $45 Lucky Property Management Airport 207 Avison Young - Florida, LLC. All rights reserved. E. & O.E.: The information contained herein was obtained from sources which we deem reliable and, while thought to be correct, is not guaranteed by Avison Young.

5 - County Industrial Market Report Third Quarter 207 Industrial Submarket Map BROWARD COUNTY MIAMI-DADE COUNTY The Hammocks 997 West Country Walk Richmond West Tamiami 94 The Crossings Kendale Three 992 Miramar Gardens Doral Sweetwater Fountainebleau University Park 976 Medley Westchester 985 Sunset Olympia Heights Country Club Gardens 9 Opa-locka Westview Pinewood 953 West Little River 934 Gladeview Brownsville 44 Springs Int l 9 Airport Palmetto Bay 823 South Pinecrest West Park Ives Aventura 7 Estates Ojus Coral Gables Golden Glades 95 N. 909 Biscayne Park Shores North AA Key Biscayne Golden Sunny Isles Bal Harbour AA Surfside Contact Information Donna Abood Principal and Managing Director 2020 Ponce de Leon Blvd, Suite 200, FL donna.abood@ Michael T. Fay Principal and Managing Director 2020 Ponce de Leon Blvd, Suite 200, FL michael.fay@ Wayne Schuchts Principal 44 Brickell Ave, Suite 06, FL wayne.schuchts@ Ryan Sharpe Research Analyst 500 W Cypress Creek Rd, Suite 350 Fort Lauderdale, FL ryan.sharpe@ 994 South Heights Cutler Bay Goulds Princeton Naranja Leisure City Homestead Base SUBMARKETS Homestead MIAMI LAKES N DADE Florida City MEDLEY AIRPORT HIALEAH CENTRAL MIAMI 9336 KENDALL S DADE 207 Avison Young - Florida, LLC. All rights reserved. E. & O.E.: The information contained herein was obtained from sources which we deem reliable and, while thought to be correct, is not guaranteed by Avison Young.