Midway through 2018 we can report that the industrial real estate market in Miami remains very vibrant. The average gross lease rate has increased from $10.01 to $10.30 per sq. ft. The average vacancy rate has decreased from 4.4% to 4.1%. There has been a significant amount of deal volume, including three major sales transactions: Hellmann Logistics’ 240,000 sq. ft. sale-leaseback of their USA headquarters, Lincoln Property’s purchase of a fully-leased 302,000 sq. ft. warehouse in Hialeah, and Duke Realty’s acquisition of the first three new buildings totaling 1,200,000 sq. ft. at Flagler Development’s Countyline Business Park (see the pricing on each below).
There is over 4,000,000 sq. ft. of industrial buildings under construction. In addition, several more warehouse developments are in the pipeline. Astute buyers are also acquiring industrial land since the inventory is dwindling and prices increasing. The ComReal Team closed two land deals in the month of June totaling $7,000,000.
There’s also a national trend that we’ve been experiencing for several years, but now it is even more noticeable. States with higher taxes, more government regulations and democratic socialism (such as New York, Illinois and California) are losing their business to business-friendly states like Florida. The income tax rate in Florida is 0.0% whereas these other states are as high as from 5% to 13%. In addition, property taxes in Florida are not as exorbitant, which is even more relative now since the IRS reductions have been reduced. Expect to see more industries consider Florida for their new operations!
If you would like to read last quarter’s report, please view: ComReal’s Miami Industrial Real Estate Report for the 1st Quarter 2018. >>>
Miami Warehouses Sold in 2nd Quarter 2018 (partial list):
|Buyer||Size SF||Property Address||Sale Price||$ PSF|
|Duke Realty||1,200,000||3760 W 108 Street||$180,000,000||$150|
|Industrial Logistics Properties||240,666||10450 Doral Boulevard||$43,100,000||$179|
|Lincoln Property||301,983||215 SE 10 Avenue||$24,300,000||$80|
|Dayan Family||211,852||3630 NW 25 Street||$22,750,000||$107|
|Falcon Distributors||77,500||3201 NW 116 Street||$5,950,000||$77|
|Eleni 7350 LLC||64,084||7350 NW 30 Avenue||$5,750,000||$90|
|NES Financial||88,862||6955 NW 52 Street||$5,250,000||$121|
Miami Warehouses Leased in 2nd Quarter 2018 (partial list):
|Tenant Name||Size SF||Property Address|
|Cooper General Global Service||153,292||8501 NW 17 Street|
|Foreign Parts Distributors||152,800||3000 NW 125 Street|
|Dade Paper & Bag||70,424||11441 NW 107 Street|
|Neutralogistics||68,787||8501 NW 80 Street|
|AAR Aircraft Services||50,000||7850 NW 25 Street|
|ABC Supply Company||45,000||1001 W Mowry Drive|
|Esquire Logistics||44,160||8272 NW 21 Street|
Featured Property: 14.6 Commercial Acres in Florida City for Sale!
ComReal is honored to exclusively represent the City of Florida City in their disposition of this 14.6 acre commercial site located on Krome Avenue in Florida City. For details on this new listing, please check out: Florida City Commercial Land for Sale. >>>
Sold! 8 Industrial Acres on Palmetto Expressway!
Sold! 8 industrial acres sold for $5,500,000. This heavy industrial site is located on the Palmetto Expressway. For more details on this transaction, read on at Palmetto Industrial Land Sold. >>>
Sold! 10 Industrial / Agricultural Acres in Redland, Florida!
ComReal also specializes with agricultural properties. Last month, our team sold 10 acres in Redland, Florida where a few of us have lived. Read more about our story at 10 Acres Sold in Redland, Florida. >>>
ComReal Happenings: Ed Redlich and Edison Vasquez on FIU Real Estate Panel
Florida International University (FIU) hosted its Spring 2018 Real Estate Speaker Series on May 15th, 2018. It focused on the state of the Industrial Real Estate in Miami and career advice for starting in commercial real estate. Ed Redlich and Edison Vasquez are both FIU alumni and participated on the panel. Read more about the FIU Real Estate Panel on Miami Industrial Real Estate. >>>
ComReal Miami – Doral’s New Location!
Please visit ComReal Miami – Doral’s new office on the ground floor of The Royal Palm Office Park at 8200 NW 41st Street in Doral, FL. We’re located just off of the Palmetto Expressway near The Doral Country Club. Please update your records with our new address: 8200 NW 41st Street, Suite #155, Doral, FL 33166.