ComReal Miami Industrial Market Report 3rd Quarter 2009
Due to recent negative press, it is especially important in this particular quarterly report to distinguish the industrial market from Miami’s overall commercial real estate market (i.e. office, retail, multi-family, etc.) Financing remains a challenge for all commercial properties and businesses. Miami has about 245M square feet of total warehouse space. The vacancy rate rose slightly to 10% and lease rates fell slightly to $7.65 per square foot gross. By comparison, both of these stats happen to be about equal to the national averages. These figures are not all that bad considering we are in a national recession; things could be worse. However, in an effort to retain and attract prospective tenants, the more aggressive landlords further reduced their lease rates, offered free monthly rents and tenant improvement allowances.
Although the past three quarters have been very poor, there were three positive signs this 3rd quarter. First, overall activity and closed deals have significantly increased. ComReal reports 15 transactions all over 25,000 sq. ft. Secondly, there is only about 200,000 sq. ft. of warehouse space under construction right now which will improve absorption. Thirdly, national and local exports are on the rise partly due to the lower dollar value and higher standards of living across the globe. More exporting means more warehouse space in Miami. These three facts may give indication that Miami’s industrial market has the potential to rebound faster than all other commercial property types.
For more information, please feel free to contact us anytime at 786-433-2379 or email. We look forward to the opportunity to discuss your plans for 2010 and beyond.
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ComReal’s New Listings on the Market!
The Palmetto Warehouse located at 1401 NW 78th Avenue in Doral. The total size is 82,500 sq. ft. with 15,000 sq. ft. office space. The features include: dock level loading; fully sprinklered; all-concrete construction; heavy electrical power; proximity to Miami International Airport; and frontage on the Palmetto Expressway. For lease for $7.00 psf gross with purchase option. Visit www.WarehouseOnPalmetto.com.
Miami Cooler Warehouse located at 6901 NW 41st Street in Miami. The total size is 15,000 sq. ft. with 1,800 sq. ft. office space. The features include: dock and street-level loading; fully sprinklered; all-concrete construction; heavy electrical power; proximity to Miami International Airport and major expressways. This property is ideal for food, beverage and flower distribution. For sale for $1,800,000 (or $118 psf).
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Florida City Warehouse located at 30 NW 12 Street in Florida City near Homestead. The total size is 20,687 sq. ft. with 2,000 sq. ft. office space. The features include: dock and street-level loading; fully sprinklered; all-concrete construction; heavy electrical power; and more. For sale for $2,200,000 (or $ 106 psf).
Warehouse Buildings Sold by ComReal in 3rd Quarter
RE Events of the 3rd Quarter
There were no major industrial real estate events this quarter due to the summer season. However, ComReal will be reporting on the following events in our year end report.
November 4th
Air and Sea Cargo of the Americas 2009
Miami, Florida, USA
October 29th
The SIOR World Conference
Toronto, Canada
October 16th
CCIM Success Series 2009
Honolulu, Oahu, Hawaii
ComReal News!!!
ComReal radio ad – just released! Be one of the first to hear it and be guided to a new website for www.ComRealWarehouses.com. There you will find more information the ComReal Miami warehouse market. This ad will air regularly on 880 AM The Biz Radio during The Neal Asbury Show every Friday from 5 to 6 PM. Checkout the website on his show at www.TheNealAsburyShow.com which discusses the topics of international trade, manufacturing, import/exporting, and more. Click here to Listen >>>
Michael Weihl leads The ComReal Companies Business Division with the launch of his new website at www.MichaelWeihl.com. If you are interested in acquiring or disposing of an existing business opportunity, please consider contacting Mr. Weihl for a confidential consultation at 786-433-2503 or email.
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Sources: CoStar Realty, CIASF, SIOR, CCIM, Beacon Council and The ComReal Companies
Urbanworks, Miami architect for commercial real estate properties
ComReal Miami commercial real estate recommends service provider, Mr. Martin Marquez, architect of Urbanworks in Miami. Mr. Marquez has over 25 years working with Miami’s commercial real estate properties. He has a Masters Degree in Architecture from the University of Florida (UF) and is a member of the American Institute of Architects (AIA). Call 305-887-4902 or visit www.UrbanWorks.net.
Some of Urbanwors Miami industrial warehouse properties include a 100,000 sq. ft. warehouse in Doral for Miami International Forwarders (photo below); a 30,000 sq. ft. Doral warehouse for Saez Refrigeration in Miami and Sweet Paper Sales Corporation warehouse in Hialeah of 300,000 sq. ft.
CIASF Panel on Commercial Real Estate with Miami-Dade Property Appraiser
Today was a refreshing day of government transparency and the people’s involvement with its local government. On Friday, September 11th, the CIASF (Commercial & Industrial Association of South Florida) setup a panel discussion on Miami-Dade County tax assessment values. The narrator was Tom Dixon and the panel incuded Stan Beck of Property Tax Consultants, Pedro Garcia of Miami-Dade County Property Appraiser and Robert Mendez of FPTS. The venue was held at the Bank of America Tower at 100 SE 2nd Street, 19th Floor.
The featured panelist was Mr. Garcia who is the County’s first-ever elected Property Appraiser. As someone who helped Mr. Garcia get elected, I am personally very satisfied with the job he is doing. Mr. Garcia has made great efforts to communicate in person with the people and answer questions from knowledgeable real estate professionals like those at the CIASF.
Before the panel discussion, commercial real estate professionals discussed some recent deals. It was announced that First Industrial sold their 156,000 sq. ft. warehouse in Medley for $77 psf all-cash; ComReal sold a 25,000 sq. ft. Opa Locka warehouse in Miami also for all-cash for $45 psf; and Norman Nierenberg bought a 25,000 sq. ft. South Dade warehouse for only $25 psf. It appears that Miami warehouses are starting to sell once again. ComReal Miami presented several large Miami warehouse properties to the audience including 400,000 sq. ft. Beacon 97 Business Park; 180,000 sq. ft. Airport International Center and 127,000 sq. ft. Miami Airport Warehouse building.
Mr. Garcia was disappointed that Miami commercial property assessments did not go down as much as residential properties which saw decreases of over 20%. The county millage rate for commercial properties will stay relatively the same. Their office is currently servicing 7,500 appeals. He suggests that more Miami commercial property owners turn in their rent rolls including incomes and expenses so they that have more information to evaluate. Property owners should be sure to provide any rental concessions, tenant improvement allowances, etc. that could show a decrease in value to property thus lowering the assessment.
It was nice to see that the audience and the appraiser’s office seem very aware that commercial property and business owners pay many other taxes in addition to property taxes. The overall sentiment of the group is that Miami-Dade County and it’s local municipalities need to stop taking more money from the tax payers. The average operating expenses for Miami warehouse buildings range from $1.95 to $3.50 psf depending on size, class, etc. Property taxes is always the largest component of these expenses. It was also stated that the overall county assessment value has decreased from $245B to $214B.
Most importantly, if you plan to appeal, be sure to hire a real estate professional that knows what they are doing and it needs to be done this week before Friday, September 18th which is the deadline. For more information, please visit the Miami Dade County Appraiser’s website at www.miamidade.gov/pa.
As a Director on the CIASF Board, one of my assignments is to look for other quality speakers, sponsors and venues. If you have any suggestions, please contact me anytime at 786-433-2379 or visit www.EdwardRedlich.com.
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