For the entire ComReal Miami Commercial Real Estate 3rd Quarter Industrial Division Report please visit http://www.edwardredlich.com/News&Press.htm
Tuesday, December 2, 2008
ComReal Miami Industrial Division 3rd Quarter of 2008 Report
Miami’s Industrial Market has seen lease rates decrease 10-20% this quarter and vacancy is now up to about 8%, and climbing. Lease rates may fall another 10-20% between now and the First Quarter of 2009. This is good news for those users seeking to lease (and purchase) new Miami warehouse space. Landlords of warehouses in Miami are offering more rental concessions such as free rent and tenant improvement allowances. Most speculative construction is on hold. Green buildings will be less appealing due to higher upfront costs. Financing is still an obvious problem, especially if you are an investor. Expect to see more transactions either owner financed or paid all cash for Miami warehouses. Although overall transaction volume is down, there are still a few significant transactions occurring. For example ComReal Miami represented Innovative Stone in its lease acquisition of 103,000 sq. ft. warehouse in Hialeah.
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There are several industries that are still doing well in Miami commercial real estate. For example, food and beverage; people still have to eat! Another is anything to do with the aging baby boom generation such as pharmaceuticals, health care, R&D, medical equipment, leisure activities, etc. With the poor economy and layoffs, we are starting to see more crime. Expect the security industry to do well from domestic and foreign threats. These industries will be most likely to occupy Miami warehouses. ComReal has several customers in these businesses so we learn from them.
Thank you for your interest.
Ed Redlich
www.edwardredlich.com
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