The 2016 industrial real estate market in Miami was full of uncertainty given both the national economy and the US presidential election. Folks did not yet know if our republic was voting for more continued governmentism or Americanism again. You may be surprised at how many significant decisions concerning real estate were on hold…until now. We are living in an era that none of us have ever experienced let alone predicted. 2017-2018 will be the era of de-regulation, less taxation and more trade (free and fair). Expect both domestic and global markets to improve which Miami greatly benefits from given it’s unique location within the trade routes and our relationships around the world. This will transcend into the warehouse market. Lease rates and sales prices will continue to increase slightly for the foreseeable future. Let’s make America…and the Miami industrial real estate market great again!
Every quarter in 2016 experienced a raise in the average lease rate and a fall in the overall vacancy rate. The year ends at $9.56 per sq. ft. and 3.7% respectively. In comparison to 2015, the average lease rate was $9.01 per sq. ft. and the vacancy rate was 4.7%. A fairly solid improvement from one year to the next. There was about 2.5M sq. ft. of positive absorption which is healthy, but less than the 3.9M sq. ft. in 2015. Nearly 3M sq. ft. of new warehouse space was delivered this year which is just above the approximate 2M sq. ft. that was delivered last year. In other words, warehouse spaces are being occupied at a faster pace than developers are constructing them. This being said, the costs for industrial land and development are incredibly high plus there is enormous competition for the 50,000+ sq. ft. class A spaces which hold those lease rates down. In our opinion, there is the most need for +/- 5,000 sq. ft. dock-height warehouse spaces. The Panama Canal expansion, more trade with Cuba, the e-commerce and marijuana industries may each likely have significant impacts on the Miami warehouse market this year. If you would like to read last year’s report, please view online at: ComReal’s Miami Industrial Real Estate Report for the Year End 2015
By far the most impressive lease in the 4th quarter of 2016 was KLX Aerospace’s lease of a 500,000 sq. ft. warehouse building in Countyline Corporate Park in north Miami-Dade. KLX will be the first tenant in the park. Flagler Development will construct the new build-to-suit warehouse. The most significant sale in the 4th quarter to close out the year was the acquisition of 55 acres by Mr. Armando Codina. As most of you know, Mr. Codina is a legend and has played an integral role in the development of Miami’s industrial parks including Beacon Lakes, Beacon Centre and Beacon Industrial Park. His latest project will be aptly named Beacon Logistics Park. The property is located at NW 145th Street & 107th Avenue in Hialeah Gardens; northwest Miami-Dade County. Condotte America Industrial Properties sold the property for $28.5M or about $12 per sq. ft. Mr. Codina will construct about one million square feet of class A warehouse spaces featuring 54′ x 50′ column spacing; 32′ clear ceilings and building depths from 160′ to 210′ feet. The first warehouse will be delivered in 2018.
“Congratulations to Interport Logistics with their lease of 80,000 sq. ft. warehouse space in Hialeah! This is an expansion of their main location and also has Foreign Trade Zone (FTZ) status. Special thanks to Keating Resources! Thank you both very much.”
– Ed Redlich, ComReal
Miami Warehouses Sold 4th Quarter 2016 (partial list):
|Buyer||Size SF||Property Address||Sale Price||$ PSF|
|JP Morgan Chase||867,343||3200 NW 67 Avenue||$209,150,000||$241|
|Equitable Real Estate Partners||397,585||7000 NW 32 Avenue||$17,500,000||$44|
|JP Morgan Chase||162,837||3200 NW 67 Avenue||$24,430,000||$150|
|Warehouse 5007||67,562||16540 NW 49 Avenue||$5,312,500||$78|
|Terreno||64,575||7120 NW 74 Avenue||$6,300,000||$98|
|First Industrial||63,389||1351 NW 78 Avenue||$8,405,000||$133|
|Palmetto Investors||61,440||4400 SW 75 Avenue||$10,000,000||$163|
Miami Warehouses Leased 4th Quarter 2016 (partial list):
|Tenant Name||Size SF||Property Address|
|Withers Moving & Storage||149,000||11421 NW 107 Street|
|Primesource Building Products||139,000||11700 NW 100 Road|
|Expeditors Logistics||112,558||3505 NW 107 Avenue|
|Colour Republic||93,000||8901 NW 33 Street|
|Interport Logistics||80,210||725 SE 9 Court|
|Apple Express Courier||29,760||1715 NW 84 Avenue|
|Garces & Garces Cargo||20,388||3200 NW 67 Avenue|
* Deals closed by the ComReal Miami Industrial Team.
“Congratulations to Garces & Garces Cargo for subleasing 20,000 sq. ft. at South Florida Logistics Center!!! Unbeatable location next to MIA for perishables distribution. The supply of refrigerated warehouses here in Miami is very limited.”
– Edison Vasquez, ComReal
Let’s Make A Deal!
Client seeks new 100,000 to 150,000 Sq. Ft. refrigerated warehouse for lease or purchase. Details are listed below and please let us know if you have a property that would suit these requirements. Note: if your property is listed by a co-operating broker then we are already aware. Thank you very much.
|Size||From 100,000 to 150,000 sq. ft.|
|Office Space||About 10%|
|Loading||Dock height loading with extra yard for trailer storage|
|Location||Central Miami-Dade to South Broward|
|Acquisition||Lease or Purchase|
|Refrigeration||Coolers and Freezers (for distribution of perishables)|
|Construction||Newer construction preferred with high ceilings +/- 32′|
|Timing||From mid-2017 to mid-2018|
Featured Property: Miami Free Zone and Foreign Trade Zone (FTZ)
ComReal is pleased to announce that it will assist the Miami Free Zone with its leasing efforts. The Miami Free Zone consists of 850,000 sq. ft. of office, showroom and warehouse spaces. The property is located at 2315 NW 107th Avenue in Doral, Florida. In addition, the Miami Free Zone is within Foreign Trade Zone (FTZ) #32 which offers tenants the ability to move products from countries more easily. For more information, please visit:
“The Miami Free Zone is the only building of it’s kind in the United States. It is more than just a property, it is truly a community of different businesses working together” states Patricia Quintana, CCIM, Leasing Director. Ms. Quintana will lead the leasing assignment for ComReal and the Miami Free Zone. “We enjoy watching businesses from all over the world trade within their offices or in the main hall over a cafecito”. To better serve the Miami Free Zone and it’s visitors, ComReal has relocated its office within the Miami Free Zone to Suite #1M02.
Office and showroom spaces range from 800 to 4,000 sq. ft. Warehouse spaces are from 4,000 sq. ft. and up. The Miami Free Zone offers one of the most secure locations in all of Miami to do business making this safe for both employees and merchandise. There are several security guards present at all times. Other features of the property include abundant, free parking; larger common areas; conference rooms; on-site cafe as well as US Customs office.
ComReal Is In The Zone
We’ve moved! Please make note of our slightly new address within the Miami Free Zone. Our new address is 2315 NW 107th Avenue, Suite #1M02, Mailbox 126, Doral, Florida, 33172. Phone number for the Miami Industrial Team is 786-433-2380 and our website is at www.MiamiIndustrialTeam.com. Feel free to stop by for a tour and a coffee. Our treat!
Missed Our Last Industrial Market Report?
If you would like to read last quarter’s report, please view online at: ComReal’s Miami Industrial Real Estate Report for the 3rd Quarter of 2016