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Articles

Demand for South Florida industrial outpaces dampening effects of rising interest rates

B+E > B+E INSIGHTS > Articles > Demand for South Florida industrial outpaces dampening effects of rising interest rates
South Florida Industrial Net Lease
08/01/2022 By South Florida Business Journal

Demand for South Florida industrial outpaces dampening effects of rising interest rates

by South Florida Business Journal

William Brooks, an associate at B+E Net Lease, said the possibility of Amazon (Nasdaq: AMZN) pulling back on some warehouse space in South Florida and elsewhere isn’t likely to have a negative impact on the value of industrial space. That’s because there are scores of industrial tenants ready to take the Seattle-based e-commerce juggernaut’s place.

For some industrial developers, that means it still makes sense to seek out opportunities to build new warehouse and storage facilities.

“Demand is so high for industrial space and supply is so constrained due to supply chain issues.. that they can’t build industrial space fast enough,” Brooks said.

Rising interest rates will eventually make it harder for builders to construct new industrial space in South Florida. But that’s not likely to occur until spring or summer of next year, Brooks said.

The same can be said for the Inland Empire region near Los Angeles and northern New Jersey, where demand for industrial space remains high, Brooks added.

Read the full article by South Florida Business Journal

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