2016 commences with strong activity in Miami’s industrial real estate market. The average lease rate has increased to $9.24 per sq. ft. and the average vacancy rate has decreased to 4.5%. The largest lease transaction of the 1st quarter was Amazon.com’s deal for the entire Building #5 of 180,000 sq. ft. at South Florida Logistics Center. You may recall that last year, they also leased a 336,000 sq. ft. warehouse in Beacon Lakes. In addition, there are several other large users in the market looking for more warehouse space.
There are several hot topics for 2016 which include the grand opening of the Panama Canal expansion in June; medical marijuana (MMJ) on the Florida ballot in November; and the opening of more trade with Cuba. Each of these should have a positive effect on the Miami warehouse market. Another positive trend is that Miami has been growing from being viewed as primarily a Latin American city to now a truly global city. Just in the past few days, our team has met with customers from Hong Kong, Malaysia, France and Hungary who each look to expand their warehouse operations here in Miami.
On the negative side, the 6% Florida state sales tax will remain on commercial rent. No other state in the USA has such a tax. The Governor and the House championed a phasing out of the tax commencing in 2017, however the Senate voted to keep the revenue while increasing expenditures. We would also be remiss if we did not mention that the weak economy and the upcoming presidential election are absolutely concerns for some decision makers.
If you would ever like to chat about Miami’s industrial real estate market, please feel free to contact our team anytime. We are easy to work with and all matters may be kept completely confidential.
In case you missed our prior report, click this link for ComReal’s Miami Industrial Real Estate Year End 2015 Report. >>>
Miami Warehouses Leased in 1st Quarter 2016 (partial list):
|Tenant Name||Size SF||Property Address|
|Amazon||180,000||3200 NW 67 Avenue|
|MA Laboratories||53,670||1701 NW 84 Avenue|
|Turner Construction||29,062||8216 NW 14 Street|
|Maxfreight International Logistics||25,600||11014 NW 33 Street|
Miami Warehouses Sold in 1st Quarter 2016 (partial list):
|Buyer||Size SF||Property Address||Sale Price||$ PSF|
|Clarion Partners||136,500||11500 NW 123 Street||$18,150,000||$133|
|Hialeah Multi Bay, LLC||81,656||155 SE 10 Avenue||$4,600,000||$56|
|Terreno Realty||60,000||12950 NW S River Drive||$6,000,000||$100|
|3500 Doral MRP||50,448||3500 NW 89 Court||$13,850,000||$275|
|Rodan III LLC||49,582||2310 W 76 Street||$3,600,000||$73|
|Tango Real Estate||36,000||7840 NW 67 Street||$3,400,000||$94|
|C.I.U||35,779||8390 NW 25 Street||$6,200,000||$173|
|3535 NW 58th ST||32,500||3533 NW 58 Street||$1,600,000||$49|
|Vader Investment||20,000||100 W 24 Street||$1,100,000||$55|
|IMA International Group||19,921||1956 NW 94 Avenue||$2,000,000||$100|
New listing! ComReal just listed this class A 64,000 sq. ft. warehouse in the Homestead Park of Commerce for sale or lease. Homestead is centrally-located in South Florida and has a “live, work, play” lifestyle. For a complete package, please visit The Homestead Warehouse. >>>
Seneca Lakes Warehouse Building Leased!
Baltec Marine leased 29,981 sq. ft. warehouse space at Seneca Lakes Business Park. For more details on the story, please read: Baltec Marine Leases Warehouse in South Florida. >>>
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