Is Miami Running Out of Warehouse Space?

The short answer: Yes, Miami faces significant supply constraints. But the reality is more nuanced. Here's what tenants need to understand.

The Vacancy Reality

Miami industrial vacancy sits at 4.2%—well below the national average of 6.8%. In practical terms, this means limited options, competitive bidding for available space, and rising rents.

Supply vs. Demand Dynamics

Approximately 2.5 million SF is currently under construction in Miami-Dade. However, pre-leasing rates exceed 75%, meaning most new supply is committed before completion.

Demand continues to outpace supply from multiple vectors: e-commerce expansion, port volume growth, and companies establishing or expanding South Florida distribution networks.

What This Means for Tenants

• Earlier search initiation: Start 6–9 months before needed occupancy
• Flexible location requirements: Consider submarkets with availability
• Build-to-suit options: For specific requirements, new construction may be viable
• Decisive action: Waiting typically results in higher costs

Looking Ahead

The supply-demand imbalance will persist through 2026 at minimum. While new development continues, absorption typically matches or exceeds new supply delivery. Tenants should plan accordingly.