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Rising vacancy and diverging demand reshape Miami’s industrial landscape
Miami’s market fundamentals have shifted notably, transitioning from the rapid absorption and tight vacancies of recent years to a more balanced environment where both pricing and demand are adjusting. This shift is reflected in rising vacancy, which reached 8.0% in Q1 2026—the highest level in the past five years and 320 bps above the five-year quarterly average of 4.7%. The rise is primarily driven by a substantial wave of new supply that continues to be absorbed at a gradual pace. Vacancy is more pronounced in larger big box buildings exceeding 100,000 square feet (sf), as occupiers increasingly favor smaller spaces under 50,000 sf. This change in demand patterns has also contributed to continued softening in asking rents, which averaged $16.42 per square foot (psf) this quarter, down 0.4% year over year.