Archive for the ‘News & Press Releases’ Category

MSI Stone expands into South Florida to Atlantic Business Center at 1706 West Atlantic Boulevard, Pompano Beach, FL 33069. The ComReal South Florida warehouse team led by industrial brokers, Ed Redlich and Chris Spear,  represented MSI. Premier Commercial Realty represented the landlord. The South Florida warehouse space leased was 55,000 square feet and is ideal for warehouse distributors and importers. When compared to CoStar Realty’s 1st quarter industrial report of lease transactions, this deal is the largest industrial warehouse space leased in Broward County so far this year in 2010.

Visit MSI’s new warehouse store location in Pompano Beach, Florida at www.msistone.com/locations/pompanobeach.html or call 954-977-8984. MS International, Inc. is originally from India and their USA office is headquartered in Los Angeles, California. MSI contacted the ComReal warehouse team because of their expertise with importers and distributors with their South Florida warehouses. The Florida distribution center warehouse space was chosen due to its central location in South Florida, dock height loading, showroom space, frontage on Atlantic Boulevard and it already had an overhead crane installed with a fully recessed loading dock. MSI imports stone, granite, marble and other flooring, tile and building supplies materials from all over the world including these countries such as Africa, Angola, Canada, China, Egypt, Germany, India, Israel, Italy, Mexico, Peru, Philippines, Spain, Turkey, and more. They are one of the leading distributors and importers of natural stone in the USA with over 16,000 containers imported annually from over thirty-five countries and operate over fifteen warehouses across the globe.

“I was so impressed with MSI Stone and their website at www.msistone.com that I purchased over 400 sq. ft. of castle travertine tiles imported from Turkey.” states Ed Redlich. “The timing was perfect to get to know my new friends at MS International as I was renovating my own home. I always enjoy doing business with my customers and supporting them any way I can, including becoming a customer of theirs myself.”

“Boston Med Device International and Coastal International Logistics (CIL Forwarding) Expand into South Florida, Miami Free Zone”

“From Dominican Republic, Europe and the United States via Miami to the World”

[Aldo Wrves of CIL Forwarding with Edison Vasquez, Chris Spear & Ed Redlich of ComReal Miami]

Boston Med Device International (BMD) has chosen Miami, South Florida for their most recent expansion. They have leased 25,000 sq. ft. of warehouse space in Miami and associated office space at the Miami Free Zone located at 2305 NW 107th Avenue in the City of Doral, Florida. The Miami warehouse space will be storing medical devices distributed across Latin America by Boston Med Device International; a Boston based specialized medical device company with direct operations in all major countries of Latin America. These products will be brought in from various international source plant locations like the Dominican Republic, the United States and Europe, and be consolidated in the Miami Free Zone. Products will then be shipped directly to all countries of Latin America via air cargo flights and ocean container service from the Ports of South Florida and the Miami International Airport. Since the Miami warehouse is within a foreign trade zone, U.S. tariffs will not be levied on goods that will be shipped abroad.

CIL Forwarding will be BMD’s operator of the warehouse. CIL is a logistics and forwarding company based in Jacksonville, Florida. They service both air and ocean freight shipments around the world with their network of warehouse facilities. Chris Hood of CIL states that “BMD is exactly the type of client we enjoy servicing. BMD will require precise warehousing and operational processes to meet the various Latin American destinations specific requirements. We are very excited about serving and developing expertises for BMD in the Miami foreign trade zone and beyond.”

CIL was co-represented by brokers Edward Redlich, SIOR, Christopher Spear and Edison Vasquez of ComReal Miami, Inc. and Jeff Graham, SIOR of King Industrial Realty / CORFAC International. Both Redlich and Graham are members of the elite Society of Industrial & Office Realtors (SIOR).

“When Coastal International Logistics, on behalf of BMD,  first contacted us about expanding into South Florida, we immediately prepared two Site Selections for available warehouse spaces from 20,000 to 30,000 sq. ft. We ultimately presented them with over sixty warehouse spaces  in both Miami-Dade and Broward Counties.” recalls Ed Redlich. “The deciding factors for the warehouse space at the Miami Free Zone were the foreign trade zone status, quality of the space, and the flexibility of future expansions.”

Cargo Ventures, owns and operates the Miami Free Zone, a 850,000 sq. ft. facility. (Visit www.MiamiFreeZone.com). Jake Citrin, President of Cargo Ventures said “we are thrilled to have BMD and CIL join over 60 other companies at the Miami Free Zone who are benefiting from operating in one of the largest general purpose foreign trade zones in the country.”

For more information on this transaction and the Miami industrial market in general, please contact Edward Redlich, SIOR, CCIM at 786-433-2379 or visit www.ComRealWarehouses.com. Additional contact information below:

Mr. Erich Roht, President/CEO
Boston Medical Device, Inc.
Boston Med Device International, LLC
Corporate Phone: 781-319-7771
www.bostonmeddevice.com

Mr. Chris Hood
Coastal International Logistics, LLC
Corporate Phone: 904-741-0691
www.coastalinternationallogistics.com

Jake Citrin, President
Miami Free Zone
Corporate Phone: 305-591-4300
www.miamifreezone.com

“South Florida Flower Carrier Grows Warehouse Space Just-In-Time for Valentine’s Day!!!”

ComReal Miami’s industrial real estate brokers, Stephen H. Smith, SIOR and Edward Redlich, SIOR, CCIM announce the warehouse expansion of their client, Armellini Express Lines, a specialized carrier of floral products (visit www.Armellini.com). Based in South Florida, Armellini is the largest carrier of floral products in the United States. Since 1945, they have specialized in the shipment of floral products in temperature controlled warehousing and transportation.

As some companies in the transportation industry reduce their size in an uncertain economy, Armellini acquires an additional 42,535 sq. ft. of warehouse space in Miami. This now gives them over 137,000 sq. ft. of warehouse space at the Miami International Distribution Center at 2003 NW 70th Avenue, Miami, Florida [MAP]. The 220,000 sq. ft. MIDC warehouse building is now 100% occupied by Armellini and several other tenants also in the perishables business. The expansion space was chosen to warehouse Armellini’s growing mass market production services, the property’s proximity to Miami International Airport and the cooler refrigeration units that were already existing in the warehouse space.

Stephen H. Smith, President of ComReal Miami, states that “Over 70% of the flowers imported into the United States enter through Miami. Armellini provides complete logistics services to the floral and other industries.”

For more information on this transaction and the Miami industrial market in general, please contact Stephen H. Smith, SIOR and/or Edward Redlich, SIOR, CCIM at 786-433-2380. For other Miami warehouse spaces for lease visit www.ComRealWarehouses.com.

Will 2010 be better, the same or worse?

Let’s first look at how we ended 2009. The average vacancy rate has slightly increased to 10.3% and lease rates have fallen to an average of $7.44 psf gross. The total amount of annual transactions for both leased and sold industrial properties have decreased significantly.

Many businesses remained in a holding pattern for the years 2008-2009. The more aggressive landlords are being forced to offer very significant rental concessions such as: six months of free rent; large tenant improvement allowances; and reduced rent. It is not uncommon for a landlord to offer the first year of a lease term at half-rate or just enough to cover their operating expenses. Financing both businesses and/or properties are still a concern, however there are enough lenders out there ready, willing and able to finance quality, credit owner-user applicants.

Overall, the industrial market in Miami has held up better than the other property-types such as office, retail, residential, etc. Listed below are some very significant trends that our team thinks will have an impact on Miami-Dade County’s industrial real estate in 2010:

• Until vacancy stabilizes and/or falls, there will continue to be low construction of additional warehouse space. This is good news for landlords who fear more competing buildings. The bad news is that many of the construction and building-supply businesses make up a large segment of tenants occupying warehouse space. Some have now had to downsize and/or close altogether. Others are looking into green retrofitting and construction, building other property-types altogether and/or exploring foreign markets. Read more on the impact of Green building from ComReal’s expert, Louise Bendix.

• The County’s unemployment rate is now 11.3%. Companies are looking for ways to keep employment costs down and will try to outsource much of their business where possible. (Example: some 3^rd party logistics companies have seen their business increase significantly). The good news is that there is an abundance of good, talented employees available to hire.

• Watch the retail market. Less consumer spending means lower demand for retail products and therefore less inventory will be stored in nearby warehouse spaces.

• Follow the money. Where are our tax dollars going? One of our best customers in the service & repair industry was seeking about 100,000 sq. ft. of warehouse space here in Miami. However, they decided to instead move their operation to the Midwest in order to receive federal stimulus money and incentives such as warehouse space for only $1.00 psf and free training for their employees. Sorry Miami!

• BIG government means BIG demand for commercial real estate. Government agencies continue to grow and acquire more industrial properties including Miami-Dade County Animal Services Department that is seeking to purchase a 50,000 square foot industrial building. Yes, this is true. Even in a recession, the County must have a new state-of-the-art dog pound!

• Our new word for 2010: “re-purposing”. Class C and other dis-functional warehouse buildings may either become obsolete or need to be “re-purposed” as they have done in the Wynwood and Design Districts. Green retrofitting is for real and must be seriously considered. It is all about making commercial properties more operationally efficient and reducing utilities expenses. Buildings that have been neglected, have major defaults and/or are in desperate need of repair will see the most significant decrease in value. Perhaps they will even be worth less than their land value if the buildings need to be demolished. Warehouse users prefer more functional, class A buildings with higher ceilings, security systems and overall good construction, such as Beacon 97^th Avenue Business Park in Doral.

• Speaking of “re-purposing”, we are also seeing this trend in our commercial real estate profession. Many CRE brokers are retooling and reeducating themselves. According to the Florida Association of Realtors, membership is down by about one-third for those who have moved on to other careers.

• There are several major construction projects that will significantly shape the future of our industrial warehouse market: 1) Port of Miami’s new Tunnel and it’s dredging of the channel to 50’ in depth. 2) Expansion of the interchange of the Dolphin (SR 836) and Palmetto (SR 826) Expressways; and also the construction of the 25th Street Viaduct which will allow cargo to move from MIA west into the City of Doral. 3) The addition of the 800,000 sq. ft. cargo facility and the Intermodal at Miami International Airport. 4) Prediction: rail-served warehouse buildings in Miami will see an increase in demand in the next couple years as products are imported to the Port of Miami and then railed further up north. Here is an 127,000 sq. ft. warehouse for lease or sale on the FEC Rail and adjacent to Miami International Airport: www.MiamiAirportWarehouse.com.

• Our customers report in each of their respective industries that federal, state, county and municipal government bureaucracy and taxation are all negatively influencing their businesses (No surprise here).

• “Miami: Gateway to the Americas”. Firms doing business on an international level still choose Miami due to its language capability, established trade routes and relationships abroad. We continue to see foreign companies locate a new warehouse facility in Miami for the primary purpose to do business with Central & Latin America and the Caribbean. ComReal is currently expanding a manufacturer from the Dominican Republic that values Miami’s air cargo routes to more international airports. A Canadian logistics company prefers a new Miami address so it can better enter and compete in the foreign markets of Brazil, Mexico, Colombia, and more.

As we can see, there are both positive and negative forces that can impact Miami’s industrial real estate market for better or for worse. Every industrial property and business is very unique.

For a free, confidential consultation, please feel free to contact Edward Redlich and The ComReal Warehouse Team anytime. We look forward to the opportunity to discuss your plans for 2010 and beyond.