Industrial developers are building South Florida warehouses and logistic spaces like never before, a development that is boosting the local real estate market and adding thousands of jobs to the local economy.
As more consumers buy products online, industrial developers are building more South Florida warehouses to store everything from car parts to fresh-cut flowers. They are investing in Miami because of its growing population, thriving business center, friendly tax structure and proximity to Latin America. South Florida gained 500,000 new residents in the past five years, and is known as the financial epicenter of the southern hemisphere.
South Florida’s industrial space has grown by 9 million square feet in the past three years, according to third quarter 2016 JLL Research. Another 4.6 million square feet of South Florida warehouse space will come open in 2017.
Developers want their warehouses and logistic spaces to have close access to major airports, ports, highways and Latin America. Miami checks all of those boxes.
Miami International Airport (MIA) ranks as the top airport in the U.S. for international freight, and the ninth-best airport for foreign cargo in the world. In 2013, Miami International handled 2.2 million tons of total airfreight, of which 88 percent was international freight.
MIA is the United States’ top hub for all U.S. flower imports. About 91 percent of all international flowers entering the United States come through Miami.
PortMiami is Miami-Dade County’s second most important economic engine, contributing $28 billion annually to the local economy and supporting more than 207,000 jobs in South Florida. The port serves 240 seaports.
Port Everglades in Fort Lauderdale is the leading container port in Florida and is ranked as the 12th busiest container port in the nation.
The Growth of Online Retail and its Impact on Local Warehouse Space
More consumers are purchasing goods online.
According to eMarketer’s latest forecasts, worldwide business-to-consumer (B2C) e-commerce sales will increase by 20.1% this year to reach a whopping $1.5 trillion. Forrester estimates that US online retail sales alone will total $294 billion by the end of the year, and will grow to $414 billion by 2018.
More consumers want to have their products delivered to them as fast as possible.
In its latest survey of over 1,000 U.S. consumers, supply chain consulting firm AlixPartners LLP found that consumers expect to wait an average of 4.8 days for delivery, down from 5.5 days in 2012. And the share of those who are willing to wait more than five days has declined to 60% from 74% in four years.
As a result, more warehouse space needs to be built in the nation’s biggest cities.
South Florida tenants have leased 18.9 million square feet of warehouse space over the past three years, results in sales of more than $1 billion in 2015.
Amazon, the world’s largest retailer, is one company familiar with South Florida.
Amazon is expected to open one of the largest warehouses in the county at the Opa-locka airport. The facility would create a nearly 900,000-square-foot distribution center with 1,000 jobs.
Opa-locka, a county owned airport, is about four miles west of Interstate-95. It is believed to be the first new construction in northeastern Miami-Dade in years.
Doral’s Growing Warehouse Space
The City of Doral, located near the Miami International Airport, has long been a major warehouse district and it only seems to be growing.
Doral is located about a few miles from Miami International Airport and 12 miles from PortMiami. Doral is home to one of the fastest-growing cities in the United States.
Some of the major employers in the City of Doral include: Carnival Cruise Lines, Univision, U.S. Southern Command, BE Aerospace, Gold Coast Beverage Distributors, Telefutura, Hellmann Worldwide Logistics, and many government entities.
Doral has more than 3,000 logistic associated companies, and it has the top-ranked tile district in the United States. Doral has millions of square feet of warehouse space. The large industrial parks include: PS Business Park’s MICC; Prologis’ Beacon Centre, Beacon Industrial Park and Beacon Lakes; International Corporate Park (ICP); KTR’s Beacon at 97th; and Americas’ Gateway Park.
Miami’s Diversity Driving Population Growth
South Florida is now the nation’s eighth largest metropolitan area, and Miami’s ability to attract international residents is a large reason why. Miami-Dade/Broward/Palm Beach metro area surpassed six million residents for the first time earlier this year.
Of the 500,000 new residents who moved to the Miami, Broward, Palm Beach metro area over the last five years, about 65 percent (335,000) came from other countries, according to U.S. Census data. South Florida’s tax environment (no state income tax in Florida), growing tech industry and infrastructure improvements are leading more Americans to relocate to Miami.
The world is drawn to Miami because Miami speaks their language. Fifty-six different languages are spoken among the student population at Miami-Dade County Public Schools. When you analyze the tri-county South Florida region, 128 languages are spoken in Miami-Dade, Broward and Palm Beach counties, according to a 2015 U.S. Census Bureau report.
Art, Culture, Transit Attracting Residents
Miami’s cultural and art institutions are also influencing the region’s population growth. Miami Beach’s Art Basel show draws the world’s top collectors, and the Wynwood neighborhood has gained national and global attention for its trendy local art.
The Adrienne Arsht Center for the Performing Arts and the waterfront Pérez Art Museum Miami (PAMM) opened recently in Downtown Miami. The $305 million Patricia and Phillip Frost Museum of Science adjacent to PAMM will open in early 2017.
Greater Downtown Miami has seen a 99.6-percent population increase since 2000, growing from 40,466 to 80,750 residents. Brickell — which is the core of Miami’s banking, investment and financial centers — has seen the largest increase in downtown, growing from 12,904 residents in 2000 to 32,489, according to the Miami Downtown Development Authority.