INDUSTRIAL REAL ESTATE INFERNO
It is has been a long time, so that means it is time to blog once again. So what is going on in the world of commercial real estate you might wonder? Well one thing is for sure, industrial is absolutely on fire these days. And it isn’t just in my stomping grounds of South Florida it is all over the state, and the U.S. as well. Why is this you might ask, and I wouldn’t blame you for doing so. The reason, in part, can be summed up in a word: delivery. Every company out there is feeling the pressure to compete against Amazon and so they have to deliver. That means they need warehouses, distribution and data centers. There are more industries than ever that are doing delivery which has increased the demand. Not as well known but still an important piece of the puzzle is the emergence of indoor farming. Everything from marijuana to tomatoes is being grown inside now so they too need large warehouses with lots of power and high ceilings. So all of this has driven industrial rates to their highest point and the vacancy to the lowest point. There are few options and for small users it is virtually impossible to find small bay warehouse space in certain areas. And if you can the pricing can be prohibitive. While real estate runs in cycles along with the economy, this is something that isn’t going to change. The way people shop and eat is changing rapidly and so the demand for South Florida industrial real estate will only grow. If you need this type of space I will be happy to help you find it but don’t be shocked when you see the prices and availability out there. It is a completely different market than it was even 2 years ago, one that is great for industrial landlords and terrible for tenants who need industrial space. As always thanks for reading and have a great day.
Contact a commercial Real Estate Expert
South Florida Commercial Specialists