INDUSTRIAL REAL ESTATE TRENDS Presented to: 2015 CCIM Commercial Real Estate Outlook Conference Presented by: CBRE, INC. Michael Silver, SIOR First Vice President Industrial Brokerage Services January 21, 2015
JANUARY 2015: MARKET Palm Beach 44,623,654 Broward 91,738,345 Miami 206,701,330 Toronto 748,853,263 New York 802,273,096 Los Angeles 992,006,117 Chicago 1,203,767,188 BUILDING SF
Miami-Dade Industrial Market Statistics 4 th Quarter 2014
Miami-Dade Largest SF Markets Total Square Footage & Vacancy
Miami-Dade Industrial Market Statistics 4 th Quarter 2014
Miami-Dade Industrial Market Statistics 4 th Quarter 2014
Miami-Dade Industrial Market Statistics 4 th Quarter 2014
Miami-Dade Industrial Trends Miami-Dade Absorption 2013 vs 2014
Miami-Dade Industrial Parks
Miami-Dade New Construction Transal Drone Video
Miami-Dade New Construction Flagler Station Drone Video
Miami-Dade Demand Drivers Robust Population Growth Healthy Labor Market Booming Housing Market in Miami MSA Global Leader in International Trade Global Leader in Tourism Magnet for Global Wealthy Elite
Miami International Airport Statistics 1 st - International Freight 2 nd - International Passengers 3 rd - Total Freight 3 rd - Total Cargo (Freight & Mail) 16 th - Total # of Operations 10 th - Total Passengers Source: Miami-Dade Aviation Department (MDAD)
Port of Miami - Perishables Fastest to Market
Miami Industrial Trends 4 th Quarter 2014 Construction Developers rushing to fill demand for Class A assets 452,386 sq. ft. is currently under construction 40% of the 3.4 million sq. ft. delivered over the last two years was pre-leased before construction was completed Space Market Demand for Class A assets is extremely high One of the lowest vacancy rates in the country Sub 40k sq. ft. spaces in particularly short supply Due to introduction of new generation of Class A buildings, assets once considered Class A are now considered Class A-/B+ Users of Class B & C moving to older generation Class A buildings Asset Market One of the most desirable investment markets in the country As land prices continue to rise and the amount of developable land diminishes, existing warehouse product sales are expected to climb
Miami-Dade Industrial Trends Tenant/User Perspectives Aviation, home products, food and pharmaceutical requirements are most active within Miami-Dade Miami-Dade market is going forward with build-to-suit activity due to the scarcity of quality available space. Tenants are exploring longer lease terms to attempt to lock in lower rental rates More retailers are deploying their E-commerce strategies for 2015 The health of the local home improvement users continues to improve with a rise in residential development
Miami-Dade Industrial Trends Landlord/Owner Perspectives Class A rental rates increasing in Miami-Dade Planned spec construction turning into actual construction starts in Miami-Dade Pre-Leasing of under construction spec projects is a good sign for developers Industrial Zoned land prices increasing in Miami-Dade market as developers explore strategic land positions In tighter supply markets, concessions are becoming more limited in the harmony with rental rate growth
Miami-Dade Mega Trends
Mike Silver s Tricks of the Trade
Michael Silver, SIOR First Vice President Industrial Brokerage Services CBRE, INC. 777 Brickell Ave, Suite 900 Miami, FL 33131 T 305.374.1000 F 305.381.6462 www.cbre.co m 2015 CRBE. We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.