Blackstone, a New York-based investment giant, and its subsidiary Link Logistics have purchased an industrial site in northwest Miami-Dade for $15.5 million. The property, located at 7320 Northwest 61st street, spans 6.3 acres and includes a 5,000-square-foot warehouse. The previous sale price is not available in records.

Blackstone launched Link Logistics in 2019 after its $7.6 billion acquisition of real estate investment trust Gramercy Property Trust, which specialized in industrial real estate. Link Logistics, led by CEO Luke Petherbridge, paid $291 million for the former Calder’s horse racing track in Miami Gardens last year. The firm plans to redevelop the 115.7-acre property into an industrial complex and movie studios.

South Florida’s industrial market continued to show signs of stability in the first quarter of this year, with landlords pushing up rents by double digit percentages. In Miami-Dade County, industrial asking rents reached $14.25 a square foot in the first quarter, a 14 percent increase compared to the same period of last year. The vacancy rate remained flat at 3.2 percent.

In the first three months of the year, industrial developers delivered 3.1 million square feet of new warehouse space in Miami-Dade.

This purchase is part of Blackstone’s ongoing investment in South Florida’s industrial market. The firm is bullish on the region’s growth prospects and is looking to acquire additional properties.

Original article published by The Real Deal here.

In Q1, net absorption remained stable, with over 684,000 sf of occupancy gains.

Vacancy dropped 40 bps to 1.6%, despite 5.4 million sf of new inventory.

No major completions occurred, maintaining tight market conditions.

Confidence among developers remains high, with 3.7 MSF under construction and 6.0 MSF of planned projects starting preparations.

Demand decreased by 25.6% in Q1, reaching normalized levels due to limited space availability.

Asking rents soared, with overall industrial rents at $13.83 PSF NNN, up 35.0% YoY.

Absorption gains in Q1 matched 4Q22, remaining stable but not reaching record levels seen in 2021-2022.

Original article published by Cushman & Wakefield here.

Florida is experiencing a population boom and a surge in office building construction as people and businesses flock to the state. With a growth rate of nearly 2% in 2022, Florida has become the fastest-growing state in the country, driven by factors such as lower taxes and increasing job opportunities.

Cities like Miami and Palm Beach, known for their retirement communities and hotels, are now witnessing a rise in demand for commercial real estate, leading to a boom in office construction. Unlike markets like New York and Chicago, which struggle with vacant older office spaces, commercial markets in Florida are thriving, with Class A buildings and trophy assets experiencing year-over-year growth of around 30%.

The influx of companies and wealthy individuals, seeking to escape higher-cost markets and enjoy Florida’s tax advantages and desirable lifestyle, has contributed to the state’s population growth and economic expansion.

The Sun Belt cities, including Miami, Nashville, and Austin, are standing out as office demand soars. While remote work and cost-cutting measures have led to a decline in office space demand in northern markets, Sun Belt cities are experiencing increased demand for newer Class A buildings.

Miami, in particular, has seen impressive commercial real estate growth, with 2022 being one of its strongest years on record. Office space vacancies dropped significantly, and asking rents rose steadily throughout the year. Despite the post-pandemic office market norm of increased sublease availability, Miami has maintained a low sublease availability, highlighting its resilience and attractiveness to businesses.

This trend reflects the ongoing migration of companies and individuals to Florida, drawn by the region’s favorable business environment, tax advantages, and quality of life.

Original article published on Investopedia here.