Miami-Dade County Industrial Market Report

Second Quarter 2018

New Supply Trails Steady Demand for Efficient Logistics Space

Solid economic fundamentals continue to strengthen, fueling growth in Miami-Dade County's industrial
market. According to the Bureau of Labor Statistics, the unemployment rate was 4.0% in May 2018, a 70-bps
decline over the trailing 12-month period. Additionally, international trade continues to fuel absorption of
newly developed bulk-distribution facilities. Year-to-date, the county absorbed over 3 million sf of industrial
space with the majority taking place in the Airport, Northwest Dade/Miami Lakes, and Medley submarkets.
These economic factors, along with Miami’s growing logistics market are contributing to the area’s expanding
development pipeline. Trailing 12-mo sales
As of the second quarter of 2018, over 2.7 million sf of industrial space was delivered to market with an volume through 2Q-
additional 3.5 million sf still under construction. Many of these new developments are largely pre-leased
and the growth of e-commerce, trade, and construction continues to bolster county-wide occupancy rates.
2018 is down 34%
There are headwinds that threaten to impact the industrial market during the balance of 2018, including Y-O-Y but still totals
new tariffs imposed on imported steel that will further push already elevated construction costs in the short
term, and the yet-to-be seen impact of the South Dakota vs. Wayfair ruling that requires online distributors
to collect sales tax. That said, industrial fundamentals remain so strong that the economic effect of those
$992 MM
headwinds should be minimal.

Industrial Market Snapshot

„„ The largest industrial lease of the second quarter was Foreign
Parts Distributors' commitment to 152,800 sf of space at Gratigny
Industrial Park in the North Dade submarket. The tenant will
occupy the space in 2019, consolidating operations from multiple
locations throughout the market.
„„ PortMiami continues to play a vital role in creating industrial
demand. As of the second quarter, the port predicts more than
1.05 million twenty-foot equivalent units (TEUs) in 2018 will have
passed through PortMiami.
„„ The largest industrial development currently under construction
is Amazon's 855,000-sf fulfillment center at Carrie Meek
International Business Park in the Northwest Dade/Miami Lakes
submarket. Once delivered, this will be the largest private industrial
development in the history of Miami-Dade County.
„„ The most significant industrial sale of the second quarter was
Duke Realty's acquistion of Countyline Corporate Park - Building
3 in the Northwest Dade/Miami Lakes submarket. The 539,975-sf
property sold for $97.6 million, or $181 per sf. Duke also purchased
two other buildings in the park for a total acquisition price of $180
million.
„„ Total industrial transaction volume grew 156% over the first
quarter with second quarter 2018 sales activity accounting
for $386.5 million in volume and 2.7 million sf of space. As land
becomes increasingly scarce, sales volume will likely increase as
developers search for infill opportunity.
„„ The most highly desired industrial properties are dock high
buildings with clear heights at or above 32 ft and availability
ranging from 15,000 to 30,000 sf of contiguous space.

187.2 MSF 3,042,958 SF 2.75% $7.43/SF/NNN

Total industrial inventory in the Direct Y-T-D net absorption Overall Vacancy Average asking rental rate
Miami-Dade County market as of 2Q-2018

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Vacancy Rate YTD Net Absorption (SF) Average Asking Rent Rate ($/SF/NNN)

MIAMI-DADE COUNTY INDUSTRIAL MARKET AT A GLANCE

4.7% 4.0%
MAY-2017 MAY-2018
CHANGE IN MIAMI-DADE COUNTY
UNEMPLOYMENT RATE SQUARE FEET CURRENTLY UNDER
INCREASE IN TOTAL NON-FARM CONSTRUCTION
EMPLOYMENT SINCE 2Q-2017

42 Ft
MILLION RENTAL RATE INCREASE
IN TOTAL INDUSTRIAL INVESTMENT SALES OVER THE TRAILING 12-MOS TENANTS ARE SEEKING CLEAR HEIGHTS
FOR T-12 MOS ENDING 2Q-2018 ENDING 2Q-2018 AS HIGH AS 42 FEET

1.05 MILLION TEUs

AMENITIES SUCH AS TRAILER STORAGE ARE IN TWENTY-FOOT EQUIVALENT UNITS (TEU) GLOBALLY-ORIENTED COMPANIES ARE
HIGH DEMAND EXPECTED IN PORTMIAMI IN 2018 ESTABLISHING E-COMMERCE FACILITIES

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 Miami-Dade County Industrial Market Report
Second Quarter
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Office Market Report Year-End 2017

Miami‐Dade County
Class Breakdown Total RSF Direct Vacant SF Sublet Vacant SF Lease Rate Occupancy Vacancy Sublet Vacancy Total Vacancy Under Construction Net Absorption
Bulk Distribution 32,972,244 2,105,848 107,162 $7.25 93.61% 6.39% 0.33% 6.71% 3,452,525 2,830,871
Flex 14,431,217 132,143 19,400 $9.51 99.08% 0.92% 0.13% 1.05% 0 92,618
Manufacturing 22,387,075 162,696 35,016 $6.60 99.27% 0.73% 0.16% 0.88% 0 (19,397)
Warehouse / Distribution 117,412,802 2,260,091 318,831 $7.53 98.08% 1.92% 0.27% 2.20% 101,130 138,866
Total 187,203,338 4,660,778 480,409 $7.43 97.51% 2.49% 0.26% 2.75% 3,553,655 3,042,958

Airport
Class Breakdown Total RSF Direct Vacant SF Sublet Vacant SF Lease Rate Occupancy Vacancy Sublet Vacancy Total Vacancy Under Construction Net Absorption
Bulk Distribution 12,760,457 547,110 27,480 $8.50 95.71% 4.29% 0.22% 4.50% 350,201 1,008,893
Flex 7,684,131 96,977 19,400 $9.36 98.74% 1.26% 0.25% 1.51% 0 (7,508)
Manufacturing 3,274,844 44,499 0 $9.50 98.64% 1.36% 0.00% 1.36% 0 (8,000)
Warehouse / Distribution 45,016,377 843,063 223,041 $7.44 98.13% 1.87% 0.50% 2.37% 0 64,158
Total 68,735,809 1,531,649 269,921 $8.00 97.77% 2.23% 0.39% 2.62% 350,201 1,057,543

Central Dade
Class Breakdown Total RSF Direct Vacant SF Sublet Vacant SF Lease Rate Occupancy Vacancy Sublet Vacancy Total Vacancy Under Construction Net Absorption
Bulk Distribution 228,000 0 0 $0.00 100.00% 0.00% 0.00% 0.00% 0 0
Flex 513,415 0 0 $0.00 100.00% 0.00% 0.00% 0.00% 0 0
Manufacturing 1,818,935 0 0 $0.00 100.00% 0.00% 0.00% 0.00% 0 16,850
Warehouse / Distribution 7,770,529 161,427 0 $11.01 97.92% 2.08% 0.00% 2.08% 0 41,322
Total 10,330,879 161,427 0 $11.01 98.44% 1.56% 0.00% 1.56% 0 58,172

Hialeah
Class Breakdown Total RSF Direct Vacant SF Sublet Vacant SF Lease Rate Occupancy Vacancy Sublet Vacancy Total Vacancy Under Construction Net Absorption
Bulk Distribution 0 0 0 $0.00 0.00% 0.00% 0.00% 0.00% 0 0
Flex 158,755 0 0 $0.00 100.00% 0.00% 0.00% 0.00% 0 0
Manufacturing 6,344,921 0 0 $0.00 100.00% 0.00% 0.00% 0.00% 0 30,200
Warehouse / Distribution 13,856,894 396,201 64,290 $6.44 97.14% 2.86% 0.46% 3.32% 0 (71,367)
Total 20,360,570 396,201 64,290 $6.44 98.05% 1.95% 0.32% 2.26% 0 (41,167)

Kendall
Class Breakdown Total RSF Direct Vacant SF Sublet Vacant SF Lease Rate Occupancy Vacancy Sublet Vacancy Total Vacancy Under Construction Net Absorption
Bulk Distribution 0 0 0 $0.00 0.00% 0.00% 0.00% 0.00% 0 0
Flex 1,846,691 17,209 0 $9.64 99.07% 0.93% 0.00% 0.93% 0 2,592
Manufacturing 755,071 0 0 $0.00 100.00% 0.00% 0.00% 0.00% 0 0
Warehouse / Distribution 6,079,598 23,722 0 $11.40 99.61% 0.39% 0.00% 0.39% 0 (5,613)
Total 8,681,360 40,931 0 $10.66 99.53% 0.47% 0.00% 0.47% 0 (3,021)

Medley
Class Breakdown Total RSF Direct Vacant SF Sublet Vacant SF Lease Rate Occupancy Vacancy Sublet Vacancy Total Vacancy Under Construction Net Absorption
Bulk Distribution 15,009,572 1,005,916 79,682 $6.58 93.30% 6.70% 0.53% 7.23% 350,000 596,576
Flex 610,372 1,500 0 $11.00 99.75% 0.25% 0.00% 0.25% 0 (750)
Manufacturing 3,254,100 118,197 0 $5.51 96.37% 3.63% 0.00% 3.63% 0 (103,197)
Warehouse / Distribution 11,139,413 231,635 1,500 $7.52 97.92% 2.08% 0.01% 2.09% 0 (45,199)
Total 30,013,457 1,357,248 81,182 $6.65 95.48% 4.52% 0.27% 4.79% 350,000 447,430

Northwest Dade/Miami Lakes
Class Breakdown Total RSF Direct Vacant SF Sublet Vacant SF Lease Rate Occupancy Vacancy Sublet Vacancy Total Vacancy Under Construction Net Absorption
Bulk Distribution 2,259,677 63,239 0 $7.00 97.20% 2.80% 0.00% 2.80% 1,136,258 1,225,402
Flex 1,644,803 3,100 0 $11.50 99.81% 0.19% 0.00% 0.19% 0 79,467
Manufacturing 2,136,913 0 0 $0.00 100.00% 0.00% 0.00% 0.00% 0 32,000
Warehouse / Distribution 6,641,236 40,340 0 $6.86 99.39% 0.61% 0.00% 0.61% 101,130 207,883
Total 12,682,629 106,679 0 $7.08 99.16% 0.84% 0.00% 0.84% 1,237,388 1,544,752

North Dade
Class Breakdown Total RSF Direct Vacant SF Sublet Vacant SF Lease Rate Occupancy Vacancy Sublet Vacancy Total Vacancy Under Construction Net Absorption
Bulk Distribution 2,477,538 489,583 0 $7.25 80.24% 19.76% 0.00% 19.76% 1,616,066 0
Flex 1,185,091 0 0 $0.00 100.00% 0.00% 0.00% 0.00% 0 19,874
Manufacturing 4,660,061 0 35,016 $0.00 100.00% 0.00% 0.75% 0.75% 0 12,750
Warehouse / Distribution 23,272,253 518,336 30,000 $7.06 97.77% 2.23% 0.13% 2.36% 0 (98,965)
Total 31,594,943 1,007,919 65,016 $7.15 96.81% 3.19% 0.21% 3.40% 1,616,066 (66,341)

South Dade
Class Breakdown Total RSF Direct Vacant SF Sublet Vacant SF Lease Rate Occupancy Vacancy Sublet Vacancy Total Vacancy Under Construction Net Absorption
Bulk Distribution 237,000 0 0 $0.00 100.00% 0.00% 0.00% 0.00% 0 0
Flex 787,959 13,357 0 $9.77 98.30% 1.70% 0.00% 1.70% 0 (1,057)
Manufacturing 142,230 0 0 $0.00 100.00% 0.00% 0.00% 0.00% 0 0
Warehouse / Distribution 3,636,502 45,367 0 $10.54 98.75% 1.25% 0.00% 1.25% 0 46,647
Total 4,803,691 58,724 0 $10.37 98.78% 1.22% 0.00% 1.22% 0 45,590

Reporting Methodology: This report includes all industrial buildings and parks 20,000 SF and greater in Miami‐Dade County that are not government owned. All rents are reported on a triple‐net basis and are direct weighted averages calculated on total 
available space.  The information in this report has been collected by the Avison Young research team via sources that are deemed reliable but is not guaranteed.

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 Miami-Dade County Industrial Market Report
Second Quarter
Orlando 2018
Office Market Report

Leading Indicators (Y-O-Y 2Q-2017 to 2Q-2018)

Miami's development pipeline is Vacancy Net Average Asking New Total
Rate Absorption Rate (NNN) Construction Employment
expanding as supply continues to
outpace demand.
2.75% 3,042,958 SF $7.43 3,553,655 SF 1.35 MM

Significant Second Quarter 2018 Lease Transactions - Sorted by SF

Tenant Property Type SF Submarket
Foreign Parts Distributors Gratigny Industrial Park New 152,800 North Dade

Caterpillar Logistics Services Centergate at Gratigny New 132,248 North Dade

Northwest Dade/
Kuehne + Nagel Contract Logistics 10701 NW 42nd Avenue New 107,075
Miami Lakes

CT Miami 10814 NW 80th Street New 77,900 Airport

Neutralogistics Airport North Logistics Park New 68,787 Medley

AAR Aircraft Services Miami International Commerce Center New 49,113 Airport

Significant Second Quarter 2018 Sales Transactions - Sorted by Sale Price

Price/
Property SF Sale Price Buyer Submarket
SF
Northwest Dade/
Countyline Corporate Park - Bldg 1-3 1,000,442 $180,000,000 $180 Duke Realty
Miami Lakes

Hellmann Worldwide Miami 246,936 $43,100,000 $175 ILPT REIT Airport

Synergy Custom Fixtures 302,000 $24,300,000 $80 ASB Real Estate Investments Hialeah

3630 NW 25th Ave 211,852 $22,750,000 $107 Dayan Family Central Miami

8050 Northwest 90th Street 59,343 $12,500,000 $211 Odyssey Engines Medley

42 NE 25th Street 22,000 $10,535,000 $479 Lagunitas Brewing Company Central Miami

1500 Northwest 95th Avenue 115,477 $10,000,000 $87 Emily Croft Airport

Pompano Industrial Center 57,000 $7,400,000 $130 Black Creek Industrial REIT IV Medley

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 Miami-Dade County Industrial Market Report
Second Quarter
Orlando 2018
Office Market Report Year-End 2017

West Park

M iramar
823
821 852 441 Ives
Aventura G olden Contact Information
BROWARD COUNTY 847 7 Estates B each
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MIAMI-DADE COUNTY M iami
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Donna Abood
Club 860 N. M iami
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27 75 823 817
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9 Glades 909
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Miami, FL 33134
Lakes 915
Hialeah 924 916 M iami Bal 305.446.0011
Harbour
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Biscayne
922 donna.abood@avisonyoung.com
924 Sur fside
826 Park
Hialeah Pinewood
932 1 M iami A1A Michael T. Fay
Medley
953 West Little Shores
R iver
Principal and Managing Director
997 934 2020 Ponce de Leon Blvd, Suite 1200
Gladeview
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M iami 27 Brownsville
441 907 305.447.7842
Doral
Springs
948
112 195 michael.fay@avisonyoung.com
M iami
821 Miami Int’l 9
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Airport
Sweetwater
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Fountainebleau 968
Principal
Tamiami
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41 M iami
Westchester 953 Miami, FL 33131
972 913
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West 986 Key
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825 david.spillers@avisonyoung.com
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997 Countr y Lakes
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West 1441 Brickell Ave., Suite 1016
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994 Heights Bay 954.903.1811
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G oulds

Princeton Lisa McNatt

Director of Research
821
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Naranja
Orlando, FL 32801
Leisure Homestead
813.444.0606
City Base
SUBMARKETS lisa.mcnatt@avisonyoung.com

Homestead MIAMI LAKES N DADE

Florida
MEDLEY HIALEAH
City
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