Insatiable demand and tightening supply pump up South Florida industrial rents (Fort Lauderdale: rentals, homes)

[Orionsdolph]

Insatiable demand and tightening supply pump up South Florida industrial rents



"The low inventory combined with robust tenant demand led to another consecutive quarter of substantial rent increases across the tri-county region, the report shows."



Broward County


"Leasing activity boomed in the first quarter, with a net absorption of more than 850,000 square feet, a record for a single quarter, the report states. In the first quarter of last year, Broward’s industrial sector absorbed 556,371 square feet."


"The vacancy rate hit 4.2 percent, matching pre-pandemic levels, and will likely to continue tightening in the next quarter, JLL found. During the same period of last year, the vacancy rate was 7.9 percent."


"The average asking rent reached a new high of $11.19 a square foot. Last year, during the same period, landlords were asking an average of $8.58 per square foot, the report states."



April 29, 2022
https://therealdeal.com/miami/2022/0...ustrial-rents/

[Atari2600]

Yeah, it's bad... and it's not going to get better. Lots of crowd-sourcing companies are coming in and paying cash for ENTIRE neighborhoods before they're even finished, requiring some people who have deposits to have them given back.



I'm guilty of this as well. Fundrise, for example, invests CASH into purchasing homes and turning them into rentals. This, along with the Federal reserve raising the rates, and everyone in the world wanting to move to Florida, creates a market where middle class people in Florida cannot afford to buy another home (and will keep the one they do have). I left Fort Lauderdale, but I didn't sell my home. I turned it into a rental.


But back on Fundrise, I invested several thousand in them, and they recently purchased 80 homes in a 120-home neighborhood. Most of the homes aren't built, some of them were, a few had COs, and the people who all had deposits were refunded their deposit.



People are being forced to rent, and with competition for rent, it's going to increase rent prices even more.




My home in South Florida commands $3,700 a month. But I haven't raised the rent on my tenant in 5 years... which was $2,800 a month. I'm just now raising by $100 to $2,900 a month simply because I'm literally losing money now. My taxes went up a few years ago, and even with this raise, I'm still "losing." That said, I know the value of the home has shot up, so I don't care too much... but I want to at least *break-even.*