S
outh Florida's industrial market experienced a slowdown in the fourth quarter of 2024, with rising vacancies and falling rents across the tri-county region. According to a recent report, Broward and Palm Beach counties saw rent drops, while Miami-Dade County's average asking rent increased by only 6% year-over-year.

    The pandemic-driven population boom and e-commerce demand had previously driven up industrial rents to record levels, with occupancy rates above 95%. However, the last three months of 2024 have given tenants more leverage in lease negotiations. "We're not seeing the crazy increases we saw in previous years," said Edison Vasquez of Com Real Miami. "This has created balanced negotiations between landlords and tenants."

    In Miami-Dade County, the average asking rent rose to $16.03 per square foot in Q4 2024, up from $15.05 a year earlier. However, the vacancy rate climbed to 5.7%, driven by a record 5.6 million square feet of new warehouse space delivered in 2024. As construction slows down, vacancies are expected to decrease over the next 12 months.

    Broward County's industrial landlords fared slightly better, with average asking rents dipping to $15.29 per square foot in Q4 2024. The vacancy rate rose to 4.5%, driven by new supply coming online. Despite this, Broward is expected to see rent growth of 3% over the next year.

    Palm Beach County's industrial landlords are also pulling back on pricing, with average asking rents nosediving to $14.49 per square foot in Q4 2024. The vacancy rate shot up to 6.8%, driven by large blocks of available space and record levels of big-box construction.