South Florida Industrial Real Estate Market Trends – 2025 Overview
Shifting Dynamics in a Post-Pandemic Market
In the aftermath of the pandemic, South Florida’s industrial real estate sector continues to evolve, with a notable increase in supply outpacing demand. The initial surge in activity during the pandemic has given way to a more balanced market as of early 2025.
Vacancy Rates on the Rise
According to a recent report by JLL, industrial vacancy rates in South Florida experienced an increase in the first quarter of 2025, reflecting a growing inventory of new distribution spaces. Specifically:
- In Miami-Dade County, the vacancy rate climbed to 5.5%, up from 5.0% in the previous quarter. This uptick can be attributed to the completion of newly built facilities.
- Palm Beach County recorded a 6.3% vacancy rate, with significant additions of new space—over 1 million square feet this year alone—leading to an expansion of approximately 3 million square feet since 2023.
- Broward County, however, bucked this trend, maintaining a lower vacancy rate of 4.1% alongside robust leasing activity.
Leasing Activity and Rates
Despite the rise in vacancies, leasing activity in some pockets of South Florida remains strong:
- In Miami-Dade County, approximately 2 million square feet in new leases and renewals were recorded within the first quarter. Notable transactions included a major 229,285-square-foot lease by Performance Food Group at 3595 Northwest 125th Street and a lease of 174,400 square feet by Garland Foods at the new Hilco Medley development.
- Conversely, Palm Beach County saw limited leasing activity, capturing only 100,000 square feet as the market grapples with an increasing supply of available space.
- Broward County experienced strong leasing with 950,000 square feet accounted for, highlighted by Transpire Bio signing a new lease for 139,020 square feet at the South Florida Distribution Center in Pembroke Pines.
As for rental pricing, asking rents in Miami-Dade averaged $16.58 per square foot, while Palm Beach County registered a lower average of $14.27. Broward County’s rents stood at $16.29 per square foot.
