S
outh Florida's industrial market is showing signs of softness as vacancy rates increased across the region in the third quarter, according to a recent Colliers report. In Miami-Dade County, landlords reduced average asking rent for the second consecutive quarter after record highs earlier this year. Despite this, institutional investors remain optimistic, with several notable trades taking place in the third quarter.

    Prologis acquired a former Verizon subsidiary headquarters near Doral for $54.5 million and plans to redevelop it into a logistics facility. Alliance HP made its first foray into South Florida's industrial market by purchasing a Hialeah warehouse for $24 million. Miami-Dade County's average asking rent dipped to $16.42 per square foot in the third quarter, down from $17.16 per square foot during the same period last year.

    In Broward County, landlords continued to raise average asking rent to $17.14 per square foot, marking the fourth consecutive quarter of growth. The vacancy rate inched up slightly to 4.9 percent, but industrial property owners leased 1.5 million square feet from July through September. Notable deals included Dalfen Industrial's acquisition of a three-property portfolio in Fort Lauderdale for $26.4 million and Brookfield Asset Management's purchase of a 154,234-square-foot warehouse for $24.4 million.

    In Palm Beach County, landlords increased average asking rent to $15.43 per square foot, but the vacancy rate rose to 6.8 percent due to 1.9 million new square feet of industrial space coming online in the third quarter. Only 41 percent of this new space is leased. Notable deals included Brookfield's purchase of three buildings in West Palm Beach for $36.2 million and Kolter Group's acquisition of five industrial buildings in Delray Beach for $21.8 million, which it plans to redevelop.