The cost of building new warehouses has been rising in South Florida thanks in part to a dwindling and more expensive supply of land.
Land prices have skyrocketed in recent years, up 106 percent this year in Broward County to about $1.2 million per acre since 2013, according to research analyzed by Colliers International South Florida. In Miami-Dade, industrial development sites are trading for about $940,000 per acre, up more than three times the $297,000 per acre that land was selling for in 2013.
Colliers looked at land sales for industrial use that sold for $2.5 million and up.
Land is the most expensive in Broward, but prices have increased at a faster clip in Miami-Dade, according to the research. In Palm Beach, the cost of industrial land grew at a slower pace over the five-year timeline. In 2018, developers paid about $304,000 per acre, compared to the $209,000 per-acre cost in 2013. And land prices in Palm Beach County actually peaked in 2017, when sales averaged about $556,000 per acre.
Here’s the breakdown from 2013 to 2018:
Active players in Broward include Bridge Development Partners, which paid $12.3 million for 40 acres of land in Pompano Beach in November. There, the firm is planning a 467,000-square-foot industrial park. The trade broke down to $307,500 per acre.
Source: The Real Deal
Larry W. Genet is a Senior Vice President in the CBRE, Inc. Miami, FL office. As part of the CBRE platform Mr. Genet can provide a wide range of services from local to Fortune 1000 clients including agency and tenant representation, asset or portfolio management, high level logistics, labor and data analytics prior to site selection, project/construction management, capital markets, owner user sales and valuation advisory services. CBRE is the global leader for real estate services worldwide.
Larry has extensive experience in landlord agency, tenant representation, acquisitions, dispositions and property management. As a third-generation commercial real estate professional and South Florida native, Larry boasts deep community ties, an intimate knowledge of the South Florida market and numerous professional contacts. Larry’s leasing expertise of industrial, office, land, retail and medical properties coupled with his experience in acquisitions and dispositions gives him the ability to represent a myriad of clients in the South Florida market. Additionally, Larry controls a portfolio of 13.5 million square feet allowing him to see every deal in the market. This ensures his clients never miss an opportunity. His knowledge of tenants and buyers in the market is top notch and when coupled with his team's vast portfolio, it's a winning combination.
