Few Miami Industrial Properties Available with a High Land to Building Ratio
There are very few industrial properties in Miami available that have a high land-to-building ratio. Meaning most Miami industrial buildings occupy the majority of the industrial land that they sit on leaving little extra land for parking, outside storage, truck courts, etc.
These industrial properties in Miami are in demand by the following business types needing additional outside storage and/or parking: light and heavy manufactures; utilities; building supplies; construction; fuel; trucking; shipping; freight; logistics; delivery; sales, service and/or repair of vehicles, heavy equipment, and more. As you can see, this list comprises of many types of businesses that operate here. Miami’s low supply of suitable properties makes it a challenge for them to identify and acquire the right property suitable to their needs.
As a rule of thumb, most warehouses have an average parking ratio of about 1.0 parking spaces per 1,000 square feet. For example, a 50,000 sq. ft. warehouse will have about 50 parking spaces. Anything below this ratio could be a sign of parking issues. If the ratio is higher than there might be ample parking just depending on the size and layout. Another rule of thumb is that if you are seeking to building a 40,000 sq. ft. warehouse for example, then you will need double the land size to put it on. So that is about 80,000 sq. ft. of land or roughly two acres.
The reasons for this lack of supply vary amongst the industrial sub-markets. In the older areas such as Hialeah and Airport East, buildings were built smaller and with lower ceiling heights. These were often constructed for clothing manufactures and food productions businesses who really did not need extra land. In addition, most of the County’s population at the time was concentrated further east and therefore workers, who often did not have their own personal cars, would walk or take the bus to work.
Nowadays in the newer sections such as Doral in Airport West Dade, larger more modern warehouses were constructed. However, due to the high demand of distribution space, most properties were built out to the minimum parking required. There is enough room for personal and trailer parking, but that’s about it. Also, outside storage can often not be allowed due to zoning or business park regulations.
The high value of land is another reason that vacant industrial sites were built out to the maximum amount possible. In the peak of the market from 2005 to 2008, industrial land was selling for about $25 per square foot or about $1,000,000 per acre. This made it cost prohibitive to acquire land that was not going to be used for vertical development which is more profitable. Miami-Dade County has the ocean on the south and east; and the Florida Everglades on the west, so there is not much more land that will be develop-able for industrial uses. We are not the only ones limited. In other parts of the country, industrial land is limited due to other natural blockades such as mountains, swamps, lakes, rivers, etc.
Recently, we just leased a 28,500 sq. ft. warehouse on two acres in Miami to a national transportation company. They appreciated the extra parking area for their trucks and personal vehicles. In fact, their broker had a very difficult time in finding a property that suited their needs. When they came across our listing, the negotiations proceeded expeditiously and the lease was soon finalized within just a few weeks.
ComReal is now marketing a 14,000 sq. ft. warehouse on two acres located at 6550 NW 74th Avenue in Miami. The entire truck court is gated and fenced in. The owner understands the value of the property. Unfortunately, too many property owners and developers make the mistake of over-building on their land. This may not only create functional issues for the property, but also severely lower the value! Prospective buyers and tenants in the market will discount the value of a property if it has functional problems. If you own or are considering buying a property, please be sure to keep in mind the future resale value of the property and the functionality to future users that will occupy it.
If your business requires an industrial warehouse building with extra land, please contact the ComReal Miami warehouse team at 786-433-2380. We specialize in these types of properties and could provide you with a preliminary site selection of available properties to suit your business operation. If you have any further questions and/or comments on this topic or a property that you have in mind, we’d be happy to discuss with you at any time.
Medley Warehouse leased by Carbonic Group
Carbonic Group has relocated its distribution operations to a warehouse in Medley which is a city within Miami-Dade County. The total warehouse space measures 3,080 sq. ft. The new location is at 8140 NW 74 Avenue, in Medley, Florida 33166. This warehouse is located in an industrial neighborhood just off the Palmetto Expressway and Okeechobee Highway (US 27). Their Miami phone number is 305-633-7449 and website is www.carbonicgroup.us.
Carbonic Group is a dry ice distribution company that his been in business for nearly fifty years. They have four warehouses across the state of Florida.
Dan Berkovitz lead ComReal’s Miami Warehouse Team in the representation of Carbonic Group in the lease transaction. Americas Industrial Realty represented the landlord. If you are seeking to lease or purchase warehouse space in Medley and/or Miami, please contact one of our industrial real estate associates to assist. We can be reached directly at 786-433-2380.
ComReal Miami Industrial Real Estate Market Report Year End 2010
Welcome to 2011. In these times of uncertainty, you may always rely on the fact that ComReal’s quarterly reports for the Miami industrial real estate market are both a valuable resource for your business and always refreshingly candid. Enclosed you will find specific examples, backup data and our professional opinion of trends in the market. We start off by stating two of the more significant statistics for 2010 overall. First, the vacancy fell by about two points to about 9%. Secondly, the overall activity for both leasing and sales increased significantly from the prior two years. If these trends continue into 2011, we will likely see lease rates and purchase prices stabilize; perhaps even increase. However, much depends on our national economy and the international trade industry which affects Miami so dramatically.
Of all of the real estate property types in Miami, the industrial category seems to be the most active. However, for buyers and tenants, the best deals may be behind us. The “early majority” of end-users that recently acquired industrial real estate took advantage of the lower pricing and terms for the best properties. The “late majority” of end-users to come along in 2011 may expect higher pricing, higher interest rates and fewer good, functional properties to choose from.
If you are an end-user such as a manufacture or distribution company, there is an important trend that you ought to be aware of which we describe as the “Walmart-ization” of Miami’s warehouse market. What this means to you is that most of the larger warehouse properties are aggressively being acquired by institutional investment firms such as REIT’s. Only about 10% of warehouses in Miami are owner-occupied. If a good opportunity to buy a free-standing warehouse building comes along, you’d better buy it or you may not find another! Del Valle Brands Distribution timed the market perfectly in December by acquiring a 127,000 sq. ft. warehouse. At a purchase price of $7,650,000 (or $60 psf), this was the largest transaction by an owner-user in all of 2010. ComReal Miami was the only broker in the transaction and successfully created a win-win for both the buyer and seller. << Read more here >>
Below is a list of Miami warehouse buildings sold in the sub-markets of Airport West Dade and Medley:
Address Closed Date: Sale Price $ PSF Size in Sq. Ft.
6400 NW 72 Avenue January $4,340,000 $115 37,562
11380 NW 34 Street January $6,700,000 $73 90,973
11401 NW 134 Street January $15,200,000 $57 268,000
11450 NW 34 Street February $2,500,000 $118 21,084
2900 NW 77 Court February $3,300,000 $86 38,042
8925 NW 26 Street February $2,000,000 $93 21,384
8150 NW 64 Street March $2,500,000 $48 52,000
8570 NW 68 Street March $1,800,000 $85 21,000
9955 NW 58 Street March $1,950,000 $113 17,203
1550 NW 96 Avenue March $1,810,000 $88 20,436
2250 NW 114 Avenue March $3,950,000 $135 29,257
7005 NW 46 Street April $1,300,000 $69 18,944
1740 NW 69 Avenue April $1,000,000 $23 43,168
7970 NW 56 Street April $1,480,000 $52 28,224
8221 NW 54 Street June $2,100,000 $50 41,581
3655 NW 115 Avenue August $3,661,000 $102 35,720
5460 NW 78 Avenue July $710,000 $56 12,517
7301 NW 77 Street August $1,000,000 $61 16,284
7939 NW 84 Street August $67,000,000 $75 882,895
1850 NW 94 Avenue September $1,420,000 $89 15,856
7000 NW 33 Terrace December $7,650,000 $60 127,010
6990 NW 25 Street December $3,640,000 $70 52,000
Another significant statistic is that there is almost zero warehouse space under construction which will help increase the occupancy levels of existing warehouse. The best deal for industrial real estate right now is vacant land. This is because nobody else is buying it. The drawback is that lenders are very reluctant to finance, so your best bet is owner financing or pay all cash. Prices for vacant land are about half-off from peak levels in 2007. Within six months you may expect an announcement of a major, new construction project and by the year’s end a significant ground-breaking. There does appear to be a renewed sense of optimism as we commence this year. Some of this is credited to Governor Rick Scott’s “Florida is open for business” campaign and the Port of Miami’s three projects: the 50’ dredge, the FEC railroad and the tunnel.
Miami Logistics Business and Warehouse Sold!
Michael Weihl of ComBiz Miami in cooperation with the ComReal Miami Warehouse team successfully brokered the disposition of a Miami logistics business opportunity and warehouse space. The total transaction was valued at more than $4,000,000, involved six different companies and over 200,000 square feet of Miami warehouse space. << Read more here >>
Miami Cooler Warehouse Available
This Miami warehouse is complete with coolers making this an ideal refrigerated distribution center for perishables. The total size of the space is 53,000 square feet including 11,000 sq. ft. of office space and 42,000 sq. ft. of warehouse space. The property is located at 2011 Northwest 70th Avenue in the Miami industrial real estate market located near Miami International Airport. According to MIA air cargo statistics: over 70% of perishables, 86% of flowers and 70% of fruits & vegetables are imported into the United States via MIA. Learn more by clicking here: Miami’s Air Cargo.
The refrigerated warehouse in Miami is now available for sub-lease for an asking rate of $8.50 per square foot, on an industrial gross basis. It was previously occupied by Dole Flowers, Sunburst Farms and Trans World Forwarding. The neighbors include Armellini Express, Mayrshon International, Flying Foods, Gate Gourmet and more. The warehouse space has ten dock height loading doors; 19′ clear ceilings and is fully sprinklered. This warehouse is ideal for the distribution of perishables, flowers, foods, beverages and produce.
For more information about this Miami cooler warehouse space and others, please contact The Miami Warehouse Team at 786-433-2380 and/or visit www.MiamiCoolerWarehouse.com
Sgt. Dan Berkovitz recruited to the Miami Warehouse Team.
Dan Berkovitz was born in Israel to an Israeli mother and Romanian-born father. After high-school, Dan joined the Marine Corps and served 4 years in supply/logistics within an artillery battalion. Dan was awarded the Navy Achievement Medal for superior performance of duty during his second tour overseas during Operation Iraqi Freedom by decongesting a heavily congested supply-chain system. This exemplifies Sergeant Berkovitz’s logistical knowledge, his tenacity to get the job done, and his leadership experience.
After the Marines, Dan Berkovitz went to college at Florida International University and graduated in 2010 with a Bachelor of Business Administration with a concentration in management. Dan has been the President of the Florida International University (FIU) Real Estate Student Association (RESA). He is now President of the Real Estate Alumni & Affinity Council for the FIU Alumni Association and School of Business alumni (2010) and member for the Greater Miami Jewish Federation Real Estate committee.
Industrial Real Estate Events
January 2011
Ed Redlich, Edison Vasquez and Dan Berkovitz attended the CCIM Miami Commercial Real Estate Outlook Conference. Visit www.MiamiCCIM.com.
January 2011
The Miami Warehouse Team and Michael Weihl attended the Commercial & Industrial Association of South Florida (CIASF) 2011 Industrial Market Report for Miami-Dade County. << Click here for the entire report >>
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