South Florida Industrial Real Estate Market Trends in 2025
Key Industrial Market Trends in South Florida – 2nd Half of 2025
South Florida’s industrial sector has been one of the strongest engines of the commercial real estate market. However, in recent months it has shown adjustments that investors and property owners should carefully monitor.
Current Outlook
- Average Cost of Industrial Space: Despite more available space, average rents remain stable around US$16.59/sf in Miami-Dade.
- Industrial Real Estate Absorption: Some submarkets reported negative absorption, but Miami-Dade showed recovery with recent positive absorption.
- Industrial Real Estate Development: New developments are being delivered, increasing supply and requiring more selectivity in location.
- Industrial Real Estate Vacancy Rates: Industrial vacancy rose from 3.3% to 5.0% in the first quarter of 2025.
Growth Drivers
- e-Commerce Growth: Growth of e-commerce and last-mile logistics demand.
- Elimination of Florida State Tax on Commercial Leases: starting October 2025, the Florida state sales tax on commercial leases will be eliminated.
- Strategic Locations: Strategic proximity to ports and airports.
Opportunities
- Focus on well-located industrial spaces near key infrastructure.
- Invest in industrial land that is appreciating and has development potential.
- Leverage tax benefits to offer more competitive lease agreements.
Anticipate Demand for Industrial Space
Although the industrial market is going through an adjustment phase, it continues to offer opportunities for those who focus on strategic locations and flexible contracts. The key is to anticipate demand and prepare for the next absorption cycle. To learn more, call Smith Commercial Property Group at 305-359-6119 or simply contact us online.