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Economic recovery leads to industrial real estate growth

18th Apr, 2013back

396 According to reports, the industrial real estate market growth currently underway in the Miami-Dade area will improve further as the economy continues to stabilize.


Despite the figure remaining some way off the three million square feet of builds under development prior the market crash, first vice-president at CB Richard Ellis, Michael Silver, has claimed that the 1.2 million square feet of industrial space currently being developed in the Miami-Dade County signifies a market that is on the mend.


CBRE projections have estimated that the Miami-Dade area will require millions of square feet of industrial space to keep up with the demand of a growing South Florida market over the next three years.


Al Germi, president of international freight logistics company Acco Foreign Shipping Inc, said: "Miami will continue growing no matter what, because it remains the gateway to Latin America."


Additionally, the completion of the Panama Canal expansion is expected to bring new trade to the area as early as 2015.


Mike Ruen, managing director at Atlanta-based DCT Industrial, said: "Most of the activity you see now was driven by the economic recovery and the fact that Miami is an outstanding distribution market driven by Latin America." He went on to add: "Any benefit from the Panama Canal would be a bonus."


The majority of the upcoming projects will be developed in the  Airport West and Medley sub-markets within close proximity of Miami International Airport.


One project is the Miami International Tradeport, which is a 125-acre industrial project located in Medley. The industrial park will boast between 1.6 and 1.8 million square feet of distribution and warehouse space. Total completion of the project is estimated to take approximately ten years.