South Florida’s industrial market, the region’s top commercial sector, is showing signs of weakness as vacancy rates increased across the region in the third quarter, according to a recent report from Colliers.

In Miami-Dade County, landlords lowered the average asking rent for a second straight quarter, following record highs in early 2024 and late 2023.

Still, institutional investors don’t seem bothered by signs of stagnation in the industrial market, considering a handful of deals that occurred in the third quarter. For example, San Francisco-based Prologis acquired the former headquarters of a Verizon subsidiary near Doral for $54.5 million. The company plans to redevelop the one-story building into a logistics facility. In another deal, Bryn Mawr, Pa.-based Alliance HP made its first foray into the South Florida industrial market by paying $24 million for a warehouse in Hialeah.

Miami-Dade County

The average asking rent fell to $16.42 per square foot in Miami-Dade County in the third quarter, compared to $17.16 per square foot during the same period last year. The rate also fell 20 cents from the second quarter of this year, according to the report.

Miami-Dade’s vacancy rate widened to 4.9 percent in the third quarter, compared to 2.6 percent during the same period last year. From July to September, industrial landlords leased 2 million square feet of space in Miami-Dade, Colliers found.

In addition to the deals with Prologis and Alliance HP, Irvine, Calif.-based Panattoni Development acquired the former Miami Herald headquarters in Doral for $29.9 million. The company plans to redevelop the 9-acre site into a specific industrial project.

Also in the third quarter, Coral Gables-based Codina Partners and San Antonio, Texas-based Affinius Capital sold a warehouse in Hialeah’s Beacon Logistics Park. The real estate arm of The Church of Jesus Christ of Latter-day Saints paid $55.8 million for the 232,629-square-foot facility.

Broward County

Broward County landlords are still in control, increasing the average asking rent to $17.14 per square foot, up from $15.89 per square foot during the same period last year, according to the report. This increase marks the fourth consecutive quarter of rent growth for Broward.

In Broward, the vacancy rate increased slightly to 4.9 percent in the third quarter, compared to 4.7 percent during the same period last year. Industrial property owners in the county leased 1.5 million square feet from July to September, according to the report.

Significant transactions during the third quarter included Dallas-based Dalfen Industrial’s acquisition of a three-property portfolio in Fort Lauderdale for $26.4 million, and New York-based Brookfield Asset Management, which purchased a 154,234-square-foot warehouse for $24.4 million, also in Fort Lauderdale. , shows the report.

Palm Beach County

Landlords are also in the driver’s seat in Palm Beach County, increasing the average asking rent to $15.43 per square foot in the third quarter from $14.36 per square foot during the same period last year, discovered Colliers.

However, the vacancy rate reached 6.8 percent in the third quarter, compared to 4.9 percent during the same period last year, according to the report. The increase in vacancy was the result of 1.9 million square feet of additional industrial space coming on line during the third quarter. Only 41 percent of new spaces are leased, the report says.

Notable transactions in the third quarter included Brookfield’s $36.2 million purchase of three buildings in West Palm Beach from New York-based DRA Advisors. In another transaction, Delray Beach-based residential developer Kolter Group purchased five industrial buildings in the company’s hometown for $21.8 million. Kolter plans to redevelop the 12.3-acre site, but has not disclosed details of the project.