Leases for warehouse space in South Florida rose by 37% YoY. This is highly because of the rise of remote work and the strength of the area’s economy. In the first six months of 2020, warehouse leases and renewals had a total of 867 deals. A year later, the area had 1,186 transactions. So far in 2021, tenants have leased a total of 1.3 million square feet. This is 62% more space than this time last year.
The South Florida economy has recovered impressively. This is because for the most part, the economy remained open despite the challenges brought by the pandemic. Governor DeSantis eased Covid19 restrictions and opened the economy just a few weeks after the stay-at-home order was issued. This has been a huge factor that has spiked the demand for warehouse space in South Florida.
Companies like Amazon, Agility Logistics, Pilor Freight, amongst others have signed some of the largest leases in the area. With so many people working from home, demand for new furniture, office supplies, building supplies (windows, doors, etc), etc has grown. Therefore, companies have needed more warehouse space to be able to supply all of these things.
Furthermore, as the demand for space grew, so did the rent prices. Right now, Miami’s average rent is $8.79 per square foot. This is up from the second quarter of 2020 when the asking rent was $8.26 per square foot.
Right now, South Florida is growing tremendously. The spike in demand for warehouse space is another indicator of this growth.
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