The sales and leasing activity remained steady for Miami’s industrial real estate market in the 3rd quarter of this year. Vacancy rates decreased slightly to 8.4% during this period while the average lease rates increased slightly to $7.15 per square foot. In comparison, the national averages are 9.6% and $5.13 psf respectively. The past and present facts in this report may provide us with some optimism for both the Miami industrial real estate market and the local economy.
The only newly-constructed warehouse to mention is GOYA’s completion of their 338,000 sq. ft. warehouse located at 13300 Northwest 25th Street. However, the most significant news is the announcements of four new construction projects of bulk-sized, Class A warehouse buildings by institutional investors, totaling just over 1,000,000 sq. ft. Three of the developments are within walking distance of each other. What is even more amazing is the fact that all of the following warehouses are being constructed entirely on a speculative basis!
|Warehouse Name||Location||Size in Sq. Ft.|
|Miami International Distribution Center||Airport West Dade||335,000|
|DCT Commerce Center||Airport West Dade||334,000|
|Beacon Lakes, Building #12||Airport West Dade||200,000|
You might be asking yourself right now if there is enough recent activity to encourage spec development? Our conservative response is “probably yes”. If a company is seeking to lease over 50,000 sq. ft. in these sub-markets there are less than ten choices right now with several prospects now currently in the market looking. Perhaps the most recent, closed deals in these sub-markets are the best indication of the near future. Check out this list of all of the leasing and sales transactions in the past six months of 25,000+ sq. ft. warehouses in Airport West and Medley.
In case you missed our prior report, you may click this link for ComReal’s Miami Industrial Real Estate Market Report. >>>
|Address||Tenant Name||Size in Sq. Ft.|
|8551 NW 30 Terrace||Univision||100,000|
|11380 NW 34 Street||Paris Accessories||100,000|
|2900 NW 112 Avenue||PAS Cargo USA||85,000|
|2000 NW 97 Avenue||ProFlowers||85,000|
|7001 NW 25 Street||USA Tile||70,000|
|11401 NW 134 Street||Trans-Trade||65,000|
|2003 NW 70 Avenue||Perelly Transport||45,000|
|7390 NW 43 Street||Telemundo||35,804|
|7001 NW 25 Street||Rosy Freight||40,000|
|8201 NW 56 Street||Sterling Transportation||28,500|
|1951 NW 89 Place||Cargo International||26,000|
|Address||Size in Sq. Ft.||Sale Price||$ PSF||Buyer|
|6100 NW 74 Avenue||180,000||$10,350,000||$58||TA Associates Realty|
|7901 NW 71 Street||180,000||$10,300,000||$57||Costex|
|12855 NW 113 Court||168,201||$28,600,000||$170||Frifa Inc.|
|3450 NW 115 Avenue||87,531||$6,850,000||$78||Seagis|
|3651 NW 79 Avenue||70,000||$6,625,000||$95||Miami-Dade County|
|8050 NW 90 Street||57,203||$3,500,000||$61||Haines Capital Group|
|2950 NW 74 Avenue||46,686||$3,600,000||$77||Consolidated Farms|
|1325 NW 78 Avenue||46,500||$3,200,000||$69||Seagis|
|8000 NW 25 Street||45,500||$3,500,000||$77||PS Business Parks|
|11460 NW 39 street||44,284||$4,400,000||$99||Terreno Realty|
|1601 NW 70 Avenue||35,000||$4,000,000||$114||Terreno Realty|
|9590 NW 25 Street||25,000||$2,550,000||$102||PH Cell|
|7005 NW 46 Street||19,000||$1,800,000||$95||Joco Produce|
Graph for Asking Prices for Miami-Dade County Industrial Properties
So after several years of zero speculative construction, what else has caused the institutions to become even more bullish on Miami? The reasons are that land values are low enough to make for attractive acquisition opportunities which is exactly as ComReal predicted in its 2010 Year-End Industrial Market Report >>>
Institutional investment companies are looking at the global picture which includes the expansion of the Panama Canal and the recent passing of the Foreign Trade Agreements (FTA’s) with Panama, Colombia and South Korea. Miami is preparing by making major upgrades to its transportation infrastructure including renovation of the Palmetto (SR826) and Dolphin (SR 836) Expressways ( www.826-836.com ) ; deep dredging the Port of Miami channel to 50’; repairing the FEC Railway; new construction of the Miami Tunnel and the Miami Intermodal Center (www.micdot.com); and new terminals at Miami International Airport. According to Miami-Dade County’s Office of Economic Development and International Trade (OEDIT) , “The airport and seaport continue to see consistent double-digit, year-over-year gains in international trade.” All of these transformations are expected to have a major, collective impact on Miami’s warehouse industry. The essence of Miami’s industrial market is truly about exploiting its international trade routes and relationships.
To learn of other trends and activity details, please contact ComReal’s Industrial Real Estate Team at 786-433-2380 and/or visit www.MiamiWarehouseTeam.com. We are always available for a friendly, but confidential discussion in regards to evaluating your warehouse space needs and business opportunities.
WAREHOUSE CONDOS IN MIAMI AIRPORT WEST DADE
The Third Quarter ended fairly stable with sales prices for class A warehouse condos in the Miami Airport West Dade sub-market at approximately $138 per sq. ft. There were no known sales for this quarter, however ComReal Miami did sell the property at 8565 NW 29 Street in Beacon Centre North for $787,000 or $109 per sq. ft. in June.
For those companies leasing class A warehouse condos in Doral, average lease rates should be around $8.25 to $8.50 per sq. ft. quoted as an industrial gross amount. In the last quarter, two known leases were completed within the Airport West Dade, class A condo parks. The leasing of 30,000 sq. ft. in Doral Commerce Park at $7.50 per sq. ft., and 8,700 sq. ft. in the International Corporate Park at $10.95 per sq. ft. Going hand in hand with the lease rates, the vacancy rate at the end of the quarter is 13.1% and is inching its way down.
For a more detailed study of Miami Airport West Dade Class A Warehouse Condos, please call Dan Berkovitz at 786-433-2098 or email at firstname.lastname@example.org.
PRESS RELEASES !!!
ComReal represented 1 Sale A Day, an e-commerce company, in their relocation from New York to lease a 100,000+ sq. ft. warehouse space in Miami Lakes. Read more about the deal about the Miami Lakes Warehouse >>>
Sterling Transportation, Inc. moved from Medley to lease 28,500 sq. ft. on a long term basis. ComReal represented the owner. Read more about the distribution warehouse in Doral >>>
WAREHOUSE IN HIALEAH FOR SALE
ComReal has just listed a 57,000 sq. ft. warehouse that can be sold to an investor or an owner/user. For more details, please read further about the Hialeah warehouse for sale >>>