Rent growth flatlines; speculative deliveries continues to fuel upward vacancy

Average asking rents have begun to taper in the South Floridaindustrial market, up 3.9% year over year but nearly flat over the last few quarters. Slowing rent growth is met with climbing vacancy, up 210 basis points (bps) year over year, primarily fueled by the delivery of speculative industrial developments over the last several quarters. The market’s construction pipeline delivered almost 7.0 million square feet (msf) in 2023; additionally, over 6.5 msf has delivered in just the first two quarters of 2024. In fact, speculative inventory built in 2023 and 2024 makes up 37.0% of current market vacancy, nearly 6.0 msf in total.

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