The rents on all property types in South Florida reached record highs in the fourth quarter of the previous year, while the vacancy rate dwindled to a minimum. Developers are involved in active construction to satisfy the growing demand.
The excessive demand and shortage of available space were particularly rampant in Miami-Dade County. Tentative data for the fourth quarter of 2022 from Colliers show that the supply of rental industrial premises in this area dropped to a historic low of 2.1%, despite the 427,000 sq m of new space commissioned over that period. The new premises were immediately absorbed by the market that needed 539,000 sq m of space.
The vacancy rate of retail and office premises also reduced to 3.3% and 10.1%, respectively. This process was accompanied by a price growth. The rent on both types of properties increased by 12% between 2022 and 2023. The asking price per square foot reached $44.16 in the retail sector and $57.18 for office space (whose rentals rose by 10% over this time).
This situation looks extremely favorable for builders and realtors. Tenants making a good profit will hardly suffer from the price growth either, but companies who were barely making ends meet before might face a hard choice. There are no signs of rentals decreasing in the nearest future.