Miami’s industrial market is slowing. Net absorption is negative at -1.6M SF, and vacancy has climbed to 6.3%, though still below the U.S. average. Demand for modern space remains strong, with post-2015 buildings 96% leased, but absorption of newer facilities has cooled. Rents, up 22% in three years, are now moderating, with annual gains slowing to 2.4% as softer demand shifts leverage toward tenants.
Miami remains a critical logistics hub, supported by its 6.1M residents, international trade through its airport and seaport, and limited development capacity due to the Everglades. These supply constraints should keep vacancies relatively low and support rent growth reacceleration by 2026. Investment is holding firm, with $2.6B in 2023 sales above the 10-year average, led by major institutional buyers.
