Q2 2022 Hialeah/E. Miami Shores Industrial Report
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Submarket Analysis
Executive Briefing on Submarket (Flex R&D) Conditions
The average Asking Rent was $11.31 in the Hialeah/East Miami Shores submarket
- Rent in the Hialeah/East Miami Shores submarket was up 1.7% from Q3 2021.
- Hialeah/ East Miami Shores submarket had its fastest rent rate of increase since year-end 2011.
- Rent is expected to finish 2022 at $11.68 in the Hialeah/East Miami Shores submarket.
The average Vacancy Rate was 0.6% in the Hialeah/East Miami Shores submarket
- The Hialeah/ East Miami Shores submarket had the lowest vacancy in the South Atlantic region, fourth lowest in the nation.
- Vacancy in the Hialeah/ East Miami Shores submarket has been in decline for six consecutive quarters.
- The Hialeah/ East Miami Shores submarket had the lowest vacancy level since Q3 2009.
Submarket Overview
The Hialeah/East Miami Shores submarket, one of seven distinct geographic concentrations within Miami, contains 2.1 million market rate rental square feet, or 11.0% of the metro’s total inventory of Flex/R&D space. In the nine-year period beginning with Q1 2012, there have been no additions to the submarket, and no space has been removed by developer activity.
Asking and Effective Rent
Asking rents increased by 1.7% during the fourth quarter of 2021 to an average of $11.31, higher than four of the metro’s seven submarkets. Since the same reporting period last year, asking rents have risen by 3.5%, up from $10.93. The Hialeah/East Miami Shores submarket’s current asking rent levels are lower than the metro’s average of $12.05, while asking rent growth in the fourth quarter compares favorably to the metro average of 1.6%. Effective rents, which take into account concessions offered to new lessees, climbed more quickly, up by 2.1% during the fourth quarter. The faster pace of effective rent growth suggests that that landlords are enjoying more pricing power at the negotiating table.
Competitive Inventory, Employment, Absorption
Total employment in the Miami metropolitan area grew by 19,300 jobs during the fourth quarter, while industrial employment expanded by 1,700. Since the beginning of Q1 2012, the average growth rate for industrial-using employment in Miami has been 0.5% per year, representing the average annual addition of 700 jobs. Over the same time period, the metro experienced an average annual absorption rate of 124,300 square feet. During the fourth quarter, metropolitan absorption totaled 78,000 square feet, of which the Hialeah/East Miami Shores submarket captured 30,000 square feet. Over the last four quarters, submarket absorption totaled 49,000 square feet, nearly triple the average annual absorption rate of 16,700 square feet recorded since the beginning of Q1 2012. The submarket’s average vacancy rate declined by 140 basis points during the fourth quarter to 0.6%, which is 2.9 percentage points lower than the long-term average, and 2.2 percentage points lower than the current metro average.
Executive Briefing on Submarket (Distribution) Conditions
The average Asking Rent was $6.72 in the Hialeah/East Miami Shores submarket
- Rent in the Hialeah/East Miami Shores submarket was up 2.4% from Q3 2021.
- Hialeah/ East Miami Shores submarket had its fastest rent rate of increase since Q3 2009.
- Rent Has risen for six consecutive quarters in the Hialeah/East Miami Shores submarket.
The average Vacancy Rate was 2.7% in the Hialeah/ East Miami Shores submarket
- Vacancy in the Hialeah/ East Miami Shores submarket fell by 160 basis points.
- The Hialeah/ East Miami Shores submarket had the lowest vacancy level since Q3 2009.
- Vacancy is expected to finish 2022 at 2.7% in the Hialeah/East Miami Shores submarket.
Submarket Overview
With 24.9 million square feet, amounting to 20.2% of the total metro inventory, the Hialeah/East Miami Shores submarket is the second largest of the seven competitive Miami submarkets identified by Reis’s researchers, smaller only than Miami Airport. In the nine- year period beginning with Q1 2012, new additions to the submarket totaled 3.6 million square feet, amounting to an annualized inventory growth rate of 1.5%; over the same period, the metro growth rate has been 1.7%.
Asking and Effective Rent
Asking rents advanced by 2.4% during the fourth quarter of 2021 to an average of $6.72, higher than only the Northeast/Miami Gardens submarket’s $6.70. The submarket has now experienced six consecutive quarterly gains in asking rent, for a cumulative total of 9.6%. The Hialeah/East Miami Shores submarket’s current asking rent levels are lower than the metro’s average of $8.14, while asking rent growth in the fourth quarter compares favorably to the metro average of 1.4%. Effective rents, which exclude the value of concessions offered to prospective tenants, advanced by 2.5% during the fourth quarter to an average of $6.44.
Competitive Inventory, Employment, Absorption
Total employment in the Miami metropolitan area grew by 19,300 jobs during the fourth quarter, while industrial employment expanded by 1,700. Since the beginning of Q1 2012, the average growth rate for industrial-using employment in Miami has been 0.5% per year, representing the average annual addition of 700 jobs. Over the same time period, the metro posted an average annual absorption rate of 2.5 million square feet. During the fourth quarter, metropolitan absorption totaled 1.9 million square feet, of which the Hialeah/ East Miami Shores submarket captured 21.1%, or 391,000 square feet. Over the last four quarters, submarket absorption totaled 1.7 million square feet, nearly triple the average annual absorption rate of 588,900 square feet recorded since the beginning of Q1 2012. The submarket’s average vacancy rate declined by 160 basis points during the fourth quarter to 2.7%, which is 6.8 percentage points lower than the long- term average, and 0.6 percentage points lower than the current metro average.
Other Q2 2022 Industrial Reports
Q2 2022 Miami Metro Industrial Report
Q2 2022 Miami Airport Industrial Report
Q2 2022 South Dade Industrial Report