The new year starts off with a slightly lower average lease rate of $9.54 per sq. ft. and a higher vacancy rate to 3.9%. The positive absorption was a mediocre 602,988 sq. ft. The most significant disposition so far this year was TA Associates’ sale of seven warehouses totaling 550,000 sq. ft. to Brookfield Asset Management for $60M. The largest lease transaction was a renewal by Bel USA of 342,750 sq. ft. in Medley Logistics Park worth an estimated value of $30M.
While most of the national developers construct larger warehouse spaces in Miami, we are happy to report that Flightway has announced that they will be delivering a new 200,000 sq. ft. warehouse divisible into 14,000 sq. ft. bays by February 2018. The project will be located at 10211 NW 62 Street. There is a decent market demand for 5,000 to 10,000 sq. ft warehouse spaces.
As you may know, Florida is the only state that charges a sales tax on commercial leases. Florida Governor Rick Scott is advocating a reduction to the Business Rent Tax from 6% to 4.5%. Please follow and support House Bill 463.
Featured Property: Miami International Logistics Center
ComReal’s featured listing this quarter is The Miami International Logistics Center. The 506,000 sq. ft. warehouse distribution center sits on twenty acres. It is ideally located near both PortMiami and Miami International Airport. Warehouse spaces are available to rent from 3,000 to 80,000 sq. ft. and up! The ownership may consider short term leases. Contact our team anytime for more information and/or a tour.
“Congratulations to our friends at Karlville! We helped them lease their 23k sf warehouse in Hialeah to Universal Freight.” – Ed, Chris, Edison and Jerome
Miami Warehouses Sold in 1st Quarter 2017 (partial list):
|Buyer||Size SF||Property Address||Sale Price||$ PSF|
|Brookfield Asset Management||258,962||8841 NW 23 Street and 2180 NW 89 Place||$25,580,000||$99|
|Brookfield Asset Management||180,810||6100 NW 74 Avenue||$19,580,000||$108|
|Brookfield Asset Management||110,554||10302 NW South River Drive||$12,600,000||$114|
|Roma Foods||96,000||3636 NW 60 Street||$6,230,000||$67|
|Sun Belle||82,261||2323 NW 72 Avenue||$10,000,000||$122|
|Pesamas||53,122||11400 NW 36 Avenue||$3,000,000||$56|
|Castellanos Real Estate||50,294||7885 W 20 Avenue||$4,000,000||$80|
|Green Explosion||46,008||6950 NW 25 Street||$3,950,000||$86|
|110th Warehouse||44,473||2005 NW 110 Avenue||$4,400,000||$99|
|Wintergreen Properties||37,510||17301 NW 2 Avenue||$3,750,000||$100|
Miami Warehouses Leased in 1st Quarter 2017 (partial list):
|Tenant Name||Size SF||Property Address|
|Bel USA||342,750||12610 NW 115 Avenue|
|Kansas Marine||109,000||555 NE 185 Street|
|American Consolidated Logistics||93,799||3200 NW 67 Avenue|
|Geodis Wilson||87,000||1751 NW 129 Avenue|
|JAS Forwarding (USA)||83,956||1900 NW 129 Avenue|
|General MRO Aerospace||60,000||10990 NW 92 Terrace|
|Hialeah Tomatoes and Fresh Produce||55,600||21150 SW 167 Avenue|
|Continental Freight||54,315||1850 NW 84 Avenue|
|CH Robinson||48,952||2000 NW 62 Avenue|
|GRM Information||38,517||725 SE 9 Court|
|LCH Trading||30,338||1751 NW 129 Avenue|
|Coastal International||26,032||2315 NW 107 Avenue|
|Universal Freight||23,605||3570 NW 59 Street|
* Deals closed by the ComReal Miami Industrial Team.
“Welcome to the Redland! Hialeah Tomatoes expands to their new 55,000 sq. ft. refrigerated / packing warehouse at 21150 SW 167 Avenue in the Redland. We wish them great success!” – Ed, Chris & Edison
“Congratulations! CH Robinson leased 48,952 sq. ft. at 2000 NW 62 Avenue owned by our friends at Aeroterm. The warehouse was refrigerated and on Miami International Airport property.” – Ed Redlich and Chris Spear, ComReal
News Release: Southcoast Simulation lands in Miami Warehouse!
Southcoast Simulation, Inc. has recently moved into its brand new 17,000 sq. ft. class A warehouse space at South Florida Logistics Center. Southcoast is based in Montreal, Canada and specializes in Visual System Technical Support for flight simulators. The landlord is Flagler Development who constructed this fourth building at South Florida Logistics Center which is adjacent to Miami International Airport. “This is the fourth client that we have represented in South Florida Logistics Center. What is interesting about these lease transactions are that three of them were new to Miami; and all four are based in other countries; two from Canada, one from France and one from Colombia.” states Ed Redlich, SIOR, CCIM, Vice-President with ComReal Miami’s Industrial Team.
“On behalf of the Miami Free Zone, we recently enjoyed working with the following tenants: Global Phone Solutions, Sure Destiny, Tours Worldwide, Coastal Int’l. Logistics and ComReal Doral!” – Patricia Quintana
ComReal welcomes Mort Fetterolf to the Team!
For over 15 years, Mort Fetterolf has represented the interests of corporate real estate users and owners in an aggressive and strategic manner. His extensive transaction experience covers a wide range of disciplines including sales, leasing, portfolio management and development.
Mort’s comprehensive approach focuses solely on his client’s goals. After thorough analysis of his clients objectives and space utilization, Mort customizes strategies based on the reduction and control of occupancy costs while maintaining flexibility. Through sophisticated financial and legal analysis, Mort delivers results to and protects his clients on both a local and national basis.
Prior to joining ComReal, Mort was Vice President of Colliers International South Florida where he completed in excess of $250 million in transactions on behalf a wide range of national and international clients. Mort also served as the Director of Leasing for Flagler Development Company where he oversaw the leasing and development of 5.5 million square feet of industrial and office product.
Mort attended the University of Delaware where he received a BA in Economics and was a member of the Ice Hockey Team.
Sample of clients: Samsung, Smuckers, Agility Logistics, Ingram Micro, CBS, Synnex, HydroFarm and HIK Vision.
“Congratulations to our long-time friend, Pete Austen, in the successful renewal of Sterling Transportation in his 28,500 sq. ft. warehouse building in Doral.” – Steve, Ed and Edison
Service Provider of the Quarter:
For all of your insurance needs for commercial real estate properties and businesses, we highly recommend our friends at Southeast Insurance. Please contact Mr. Fernando Silva, Managing Director, at Southeast Insurance. His phone number is 646-361-4010 and/or visit their website at www.SoutheastInsure.com
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 4th Quarter of 2016
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