Why Invest in South Florida Industrial Property?
Miami-Dade and Broward Counties have experienced an unprecedented real estate market over the last several years. Population increases coupled with economic factors have made South Florida a favorite of real estate investors in all market segments. The industrial market has surged in 2005 due to tenant expansion, scarcity of developable land, investor activity and the immigration of businesses seeking to capitalize on the regions population and income growth. Rental rates for Class A industrial products are expected increase by as much as 5% by year end.
Reis, a national supplier of real estate market information, lists Miami seventh in its top 10 industrial markets by rent growth during 2004; the local market is also ranked seventh by vacancy rate (7.4%). The economic outlook for industrial sector is bright, says CB Richard Ellis researchers. Factors contributing to that include interest in Miami as a likely site for the Free Trade Area of the Americas secretariat, an increase of 2.5% over fiscal 2004 in cargo handled at Prot of Miami, the continuing recovery of various South American economies, lower than anticipated US deficit and unemployment rates, stable inflation and increasing interest rates.
The demographic outlook for the South Florida region looks incredibly strong. Miami-Dade and Broward counties are anticipating a population growth of nearly nine percent by 2009 bringing the gross population to nearly five million. Median home prices will mark a thirty-three percent increase by 2009 with an increase in median household income of twenty percent making South Florida one of the strongest growth regions in the country.
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