Miami’s industrial sector is shifting from rapid expansion toward market balance

Miami’s industrial market showed signs of stabilization during 2025. In Q4 2025, vacancy stood at 6.9%, increasing 60 basis points (bps) year over year. Vacancy remains 230 bps above the five-year quarterly average of 4.6%, largely driven by a significant volume of newly delivered product that continues to be absorbed at a measured pace. After three consecutive quarters of modest growth, asking rents began to soften, averaging $16.40 per square foot (psf), a 2.8% decrease from Q2, while remaining 2.2% higher year over year. Rent growth has continued to moderate since 2023 following the record 68.8% increase in 2022, with cumulative growth of just 2.1% over the past two years. As both vacancy and rents move toward equilibrium, the market appears to be resetting after a period of rapid expansion, pointing to a more balanced outlook in the years ahead.

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