South Florida is known for its tropical climate, white sand beaches, hot nightlife, and upscale mansions. But another sector of real estate is providing good dividends, and it’s not the branded condos from Missoni and Aston Martin.
Beyond the bright lights and exclusive nightclubs, large industrial spaces like warehouses and logistics facilities prove to be a lucrative endeavor for investors. Changing consumer trends and Florida’s close proximity to Latin America contribute to this rise in activity.
Unlike the change in the residential market, which is due to overall economics, the increase in industrial real estate activity comes directly from the local economy.
With over 4 million square feet of industrial space in Miami-Dade expected this year, the market is continuing to improve as retailers look to add facilities that speed up delivery time to consumers.
Amazon, which already has over 500,000 square feet of leased space in South Florida, is rumored to be negotiating a lease for an additional 850,000 square feet. Other companies like KLX Aerospace are expanding their footprint as well.
Just how much real estate is leased each year? South Florida tenants leased 18.9 million square feet of space in the past three years. This spurred tons of development and sales that were valued around $1 billion in 2015.
Broward County is currently deciding on whether to work with a bidder who wants to lease and develop space at Port Everglades that includes a 250,000 square foot warehouse and attached office building. The estimated construction costs would be $2.5 million and take over two years to complete.
This project is just one of a number of proposals popping up to accommodate the growing need for industrial space in South Florida, and shows that these projects can create jobs, help the local economy and provide needed space for years to come.