Miami Industrial | Q1 2025 Report

MIAMI INDUSTRIAL | Q1 2025 REPORT

Strategic Capital Insights for Sponsors & Developers

Market Snapshot: Miami Industrial – Q1 2025

• Vacancy Rate: 5.7%
• Net Absorption: 751,665 SF
• Under Construction: 5.16M SF (down from 7.5M in 2024)
• Deliveries (Q1): 1.27M SF
• Average Lease Rate: $16.04/SF NNN
• Top Sectors Driving Demand: E-commerce, Food & Beverage, Freight Forwarding
• Notable Activity: 250K SF lease at Prologis Gratigny Industrial Park 15​

Key Takeaways: What Developers and Operators Need to Know

Miami’s industrial market continues to adjust after a multi-year run of historic growth. While demand remains resilient, supply-side pressures and cooling rent growth are reshaping how capital is being deployed. For sponsors and developers, this means leaning into execution, data-driven strategy, and structuring flexibility.

Strategy Notes — Advisory Guidance from Bender Carey Capital

Capitalize on Small-Bay Strength

• Submarkets like Kendall/Tamiami (2.5% vacancy) and Northeast Dade (1.9%) are outperforming.
• These assets lease faster, attract local users, and are better suited to repositioning plays.

Our Advice:

Projects should be presented with clear evidence of lease-up velocity, tenant mix potential, and market depth to secure favorable financing and equity terms. Structuring narratives around local demand drivers and tenant stickiness is key to attracting capital in this cycle.

Plan Ahead for Spec Development Gaps

• New construction has dropped sharply to 5.1M SF, from 7.5M last year.
• The current slowdown sets the stage for a tighter market in late 2025.

Our Advice:

Developments with fully modeled capital stacks, draw schedules, and absorption scenarios will be first in line for tranche-based equity and drawdown debt. Outlining flexibility in phasing and exit timing improves certainty and appeal for capital partners.

Reposition and Recapitalize Overleveraged Deals

• Larger warehouse formats (>100K SF) are struggling, with vacancy at 7.4%.
• These assets often require re-leasing strategies and new capital injections.

Our Advice:

Undercapitalized or stalled assets can benefit from structured recapitalization plans that align interests across the stack. Sponsors that present clear path-to-stabilization models with upside-sharing mechanics will stand out to family office and fund investors.

Quantify and Narrate Your Execution Strategy

• Lenders and equity partners are placing a premium on execution discipline.
• The strongest deals combine local expertise with institutional-grade presentation.

Our Advice:

A well-documented execution plan that includes lease milestones, budget adherence, and exit optionality remains the gold standard for winning capital. Sponsors who articulate a concise, data-driven story with supporting market evidence are far more likely to secure commitments efficiently.

Bender Carey Capital: Structuring Capital for What’s Next

As a capital markets advisor, we support sponsors and developers through every stage of the deal lifecycle — from site acquisition to stabilized disposition. Our advisory team provides tailored guidance on:

• Construction and bridge loan structuring
• Preferred equity and JV capital solutions
• Recapitalizations and lease-up strategies
• Exit planning and lender negotiations

Whether you’re developing a last-mile logistics site or repositioning a legacy asset, Bender Carey Capital delivers the insights and introductions needed to get deals done in today’s dynamic market.

Reach out: DM us or email info@bendercareycap.com to discuss opportunities.

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