FYI Miami: April 25, 2024

Below are some of the FYIs in this week’s edition. The entire content of this week’s FYIs and Insider sections is available by subscription only. To subscribe click here.

AIRPORT FLYING HIGH: Miami International Airport is soaring, literally. February passenger totals rose more than 13% year over year as did the number of international passengers, while domestic passengers increased nearly 13%, according to the airport’s latest monthly traffic report. Passengers filled more than 4.1 million of the 4.8 million total available seats on planes. In the first two months of this calendar year the airport has handled nearly 9.7 million passengers, up nearly 12% from the nearly 8.7 million passengers in the first two months of 2023.

INDUSTRIAL CONSTRUCTION SLOWS: Vacancies in industrial properties are expected to grow from the current 3.6% to about 4% before declining again next year as supply surges, CBRE forecasts in its latest market report. The industrial market is still growing, but at a slower pace, CBRE says, as demand has fallen to 2.1 million square feet over the last 12 months, falling below the average absorption rate of the last five years of about 4.5 million square feet. “Although the market has shown robust performance overall, the growth in asking rents has started to decelerate” and was flat in the first quarter, the firm said. While more than 7.3 million square feet are currently under construction, CBRE said, new construction starts declined to 2.4 million square feet in 2023, below the recent average of 5 million square feet. 

OFFICE RENTS RISING: Office rents rose more than 5% almost everywhere in Miami-Dade County in the first quarter of this year, CBRE says in its quarterly report, with Class A space in Brickell rising 11.6% year over year to pass $100 per square foot. Second-highest annual rate growth was in Wynwood, up 6% to $82.79, but Wynwood’s vacancy rate also fell to 25%, CBRE said. Tenant demand rose for trophy buildings, pushing up asking prices over four years 68% to $97.55, Avison Young reported. “The urban core of Miami … has become focal points for new office developments, providing a sought-after live, work, play environment,” Avison Young said. “This rising trend has led to a 40% increase in asking rates over the past four years, reaching $58.42 per square foot.”

GAS RISES: Average gasoline prices in Miami rose 4.2 cents per gallon in the past week to $3.60, according to GasBuddy. Prices in Miami are 1.5 cents higher than a month ago but still 9.9 cents lower than a year ago. The national average price rose 4.3 cents in the week to $3.64, up 10.8 cents per gallon from a month ago.