Rents decline amid rising vacancy rates and slowing demand

After peaking in the first quarter of the year at $15.94 per square foot (psf), industrial rents in South Florida have experienced three consecutive quarters of slight reductions, settling at $15.81 psf in Q3. This marks a modest year-over-year increase of just 2.2%, highlighting a deceleration in industrial demand. This modest rent increase contrasts sharply with the 58.1% surge recorded between Q4 2021 and Q4 2022. With the delivery of 15.5 million square feet (msf) since Q1 2023 and slowing demand, vacancy rates have been gradually rising for six consecutive periods, now reaching 5.8%. This comes after hitting a low of 2.9% in Q1 2023.

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