In a recent episode of America’s commercial real estate show, the host delved into the current state and future prospects of the industrial real estate sector. The episode was a rich source of insights, forecasts, and strategies pertinent to the industry.
The show’s host began by expressing his enthusiasm for the upcoming global summit, emphasizing the networking, deal-making, and investing opportunities it provides. He then transitioned into the main topic of the episode, the industrial real estate market.
The host invited Ermengarde Jabir, Director of Economic Research with Moody’s Analytics, to share her insights. Jabir provided an overview of the current situation in the industrial real estate sector, noting that despite some slowdown, the sector remains stable. She revealed that the national vacancy rate stands at around 7%, with rent growth hovering around 3% in the first quarter of 2025. She also predicted a slight uptick in the vacancy rate in the second quarter, albeit not a significant one.
The conversation then turned to the topic of manufacturing facilities. Jabir noted a decrease in construction spending on manufacturing since its peak in 2024. She also touched upon the trend of reshoring, highlighting that while interest in reshoring has resurged, the process is often more expensive and time-consuming than anticipated.
Jabir also discussed the potential impact of geopolitical tensions and oil price shocks on the industrial real estate sector. She explained that if oil prices increase, it could lead to higher transportation costs and subsequently higher goods prices, which could decrease demand.
On a more positive note, Jabir highlighted the opportunities in the cold storage sector of industrial real estate, due to its essential nature in storing food and medicine. She concluded by noting that while the industrial sector has slowed down, it is still doing well compared to its peers and is expected to maintain general stability and progress into the following year.
Hawkins Commercial Realty Local Insight
From a Miami perspective, these insights are particularly relevant. As a global city with a strategic geographic location, Miami has a thriving industrial real estate sector that supports a wide array of industries. The city’s industrial properties, particularly those supporting logistics and warehousing, could be impacted by the trends and shifts discussed in the show. Miami’s industrial real estate stakeholders will undoubtedly benefit from keeping a close eye on these developments as they navigate their investment and operational decisions in the coming months.