{"id":580,"date":"2019-02-06T19:24:59","date_gmt":"2019-02-07T00:24:59","guid":{"rendered":"https:\/\/www.lee-associates.com\/miami\/?p=580"},"modified":"2021-09-30T17:36:22","modified_gmt":"2021-09-30T21:36:22","slug":"report-south-florida-industrial-construction-to-decline-in-2019","status":"publish","type":"post","link":"https:\/\/www.lee-associates.com\/southflorida\/2019\/02\/06\/report-south-florida-industrial-construction-to-decline-in-2019\/","title":{"rendered":"Report: South Florida Industrial Construction To Decline In 2019"},"content":{"rendered":"<p style=\"text-align: justify\">The industrial construction boom in\u00a0<strong>Miami-Dade<\/strong>\u00a0is waning and development of new warehouses will take a dip in 2019, according to the\u00a0<strong>Commercial Industrial Association of South Florida\u2019s Annual Industrial Market Report<\/strong>.<\/p>\n<p style=\"text-align: justify\">While rental rates increased slightly in 2018, the cost of land acquisitions and industrial construction is becoming too expensive for developers to consider new projects. Rezoning of industrial properties into retail and office uses is also limiting development.<\/p>\n<blockquote>\n<h3>\u201cA decline in new construction is expected because rental rates do not support the increased costs for land and construction,\u201d said\u00a0<strong>Andrew Dixon<\/strong>, a broker with\u00a0<strong>Dixon Commercial Real Estate<\/strong>\u00a0who co-authored the report. \u201cThe decrease in industrial land has resulted in increasing prices for land suitable for development.\u201d<\/h3>\n<\/blockquote>\n<p style=\"text-align: justify\">Industrial developers are seeing increased competition from commercial builders that are paying top dollar for sites ripe for redevelopment. For instance, the\u00a0<strong>CIASF<\/strong>\u00a0report highlighted the\u00a0$40.3 million\u00a0a joint venture between\u00a0<strong>Terra<\/strong>\u00a0and\u00a0<strong>Terranova Corp.<\/strong>\u00a0paid for<strong>\u00a0PepsiCo<\/strong>\u2019s regional headquarters and distribution center in\u00a0<strong>Doral<\/strong>\u00a0in January of last year.<\/p>\n<p style=\"text-align: justify\">While the new owners are leasing back the 232,000-square-foot facility at\u00a0<strong>7777 Northwest 41st Street<\/strong>,<strong>\u00a0Terra<\/strong>\u00a0and\u00a0<strong>Terranova<\/strong>\u00a0want to rezone the property in order to build 500,000 square feet of commercial space.<\/p>\n<p style=\"text-align: justify\">Still, investor appetite for industrial warehouses remained strong in 2018, according to the\u00a0<strong>CIASF<\/strong>\u00a0report. A total of 6.4 million square feet of industrial space was sold in 2018, an increase of about 2 million square feet over the previous year. The combined dollar value of all industrial sales in 2018 totaled\u00a0$621 million, roughly $203 million more than the previous year. The average price per square foot was $96 compared to $80 in 2017.<\/p>\n<p>&nbsp;<\/p>\n<p><em>Source:\u00a0<a href=\"https:\/\/therealdeal.com\/miami\/2019\/01\/11\/sofla-industrial-construction-to-decline-in-2019-ciasf-report\/\">The Real Deal<\/a><\/em><\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/www.lee-associates.com\/miami\/services\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft wp-image-1176 size-large\" src=\"https:\/\/www.lee-associates.com\/miami\/wp-content\/uploads\/sites\/62\/2019\/05\/Blog_Industrial-Services-1024x171.png\" alt=\"Lee &amp; Associates South Florida Industrial Services\" width=\"1024\" height=\"171\" srcset=\"https:\/\/www.lee-associates.com\/southflorida\/wp-content\/uploads\/sites\/62\/2019\/05\/Blog_Industrial-Services-1024x171.png 1024w, https:\/\/www.lee-associates.com\/southflorida\/wp-content\/uploads\/sites\/62\/2019\/05\/Blog_Industrial-Services-300x50.png 300w, https:\/\/www.lee-associates.com\/southflorida\/wp-content\/uploads\/sites\/62\/2019\/05\/Blog_Industrial-Services-768x128.png 768w, https:\/\/www.lee-associates.com\/southflorida\/wp-content\/uploads\/sites\/62\/2019\/05\/Blog_Industrial-Services-1536x256.png 1536w, https:\/\/www.lee-associates.com\/southflorida\/wp-content\/uploads\/sites\/62\/2019\/05\/Blog_Industrial-Services.png 1992w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The industrial construction boom in\u00a0Miami-Dade\u00a0is waning and development of new warehouses will take a dip in 2019, according to the\u00a0Commercial Industrial Association of South Florida\u2019s Annual Industrial Market Report. While rental rates increased slightly in 2018, the cost of land acquisitions and industrial construction is becoming too expensive for developers to consider new projects. Rezoning of industrial properties into retail and office uses is also limiting development. \u201cA decline in new construction is expected because&#8230;<\/p>\n","protected":false},"author":76,"featured_media":581,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,105,1818],"tags":[178,103,463],"class_list":["post-580","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-industrial","category-land-development","tag-ciasf","tag-commercial-industrial-association-of-south-florida","tag-industrial-construction"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.7 (Yoast SEO v28.7) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Report: South Florida Industrial Construction To Decline In 2019 - Lee &amp; Associates South Florida<\/title>\n<meta name=\"description\" content=\"According to CIASF, the industrial construction boom in\u00a0Miami-Dade\u00a0is waning and development of new warehouses will take a dip in 2019.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.lee-associates.com\/southflorida\/2019\/02\/06\/report-south-florida-industrial-construction-to-decline-in-2019\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Report: South Florida Industrial Construction To Decline In 2019\" \/>\n<meta property=\"og:description\" content=\"According to CIASF, the industrial construction boom in\u00a0Miami-Dade\u00a0is waning and development of new warehouses will take a dip in 2019.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.lee-associates.com\/southflorida\/2019\/02\/06\/report-south-florida-industrial-construction-to-decline-in-2019\/\" \/>\n<meta property=\"og:site_name\" content=\"Lee &amp; 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