The Miami-Dade industrial market surprisingly has continued the healthy pattern of leasing and sales activity in the fourth quarter of 2007, much like how it performed in the previous quarter. More than 1million square foot of industrial space was leased in the fourth quarter. Availability and vacancy rates remained under 6%, which is still below the national average of about 10%. The fourth quarter of 2007 basically performed the same as the third in activity and pricing,however it lacked the panic that happened during the summer’s credit crunch. The Miami-Dade commercial real estate market experienced small corrections and the re-pricing of certain assets, however the general effect was not as negative as many had predicted. Despite current economic difficulties, and uncertainty hovering the credit markets as well as the specter of an upcoming recession and the residential fallout, Miami-Dade County continues to remain a viable destination for both local and international traders and investors. Industrial Vacancy Rates Go Up, The vacancy rates for the commercial and industrial sector have steadily gone up by 1.6 percent from the 4.2% rate recorded in the same period last year. Bulk space saw an 1.8 percent increase while flex space also saw a rise of 2.9 percent from the rate recorded during fourth quarter of 2006. Miami-Dade’s availability levels also went up from 5.6% in the fourth quarter of 2006, to 7.8% in the fourth quarter of 2007. Some commercial real estate analysts are also forecasting asking rates to stabilize with limited future increases. One of the main reasons why asking rates could stabilize is the adding of more space, which is expected to enter the market this 2008. These factors have attributed to continuing tight market conditions despite the increase in vacancy levels, and the negative absorption levels recorded.
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Tags: Commercial, Real Estate
