Industrial real estate is thriving in South Florida, and there are many opportunities for investors in this space.
The industrial real estate sector can include warehouses, logistical space, or former manufacturing facilities. The potential for these spaces is endless, and investing in this sector can bring large returns on investment. Industrial spaces typically have lower vacancy rates, and investments can boost local economies.
Many Investment Opportunities Exist
South Florida’s inventory of industrial space has increased by 9 million square feet over the past three years. In 2017, experts predict another 4.6 million square feet of warehouse space will become available, “equal to more than 80 NFL football fields,” according to the Miami Herald.
Tenants in South Florida have leased 18.9 million square feet of warehouse space over the past three years. This has fueled many new developments and industrial property sales, some valued at more than $1 billion.
These opportunities are also being fueled by Amazon’s reported lease negotiations for an 850,000-square-foot warehouse in the area, in addition to its existing 500,000-square-foot presence in Miami-Dade County. Other major corporations have also announced new distribution centers and other facilities in the area.
South Florida Offers a Premium Location
South Florida’s strategic location and proximity to Latin America is creating some valuable opportunities for industrial real estate investors. Many new companies are coming into the market, as the population is growing and consumer needs are shifting.
Over the past five years, nearly 500,000 people moved to South Florida, and the U.S. Census Bureau predicts that number to grow over the next few years. This has boosted consumer demand in the region.
The increase in online sales and subscription-based services mean that distribution and fulfillment centers are much in demand. This is leading to more investment activity and opportunities in the industrial sector.
Investing in Industrial Spaces Boosts Local Economies
The increase in population and new consumer demand means good things for South Florida’s local economy. The industrial real estate sector is directly tied to consumer activity, unlike the housing market, which is impacted by macroeconomic cycles.
As more people move to the area, more warehouses are needed to store and distribute consumer goods. There are more opportunities for investment, more jobs are created, and local economies become healthier.
South Florida is attracting top-notch developers, property owners, and tenants. And, the area is ripe for more investment in the industrial sector.
If you’re interested in learning more about investing in industrial spaces in South Florida, let us help. We are local experts. Give us a call at 786-433-8740 to schedule a consultation.
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