3rd quarter 2011 miami industrial real estate market report

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
Flagler Station Medley 170,000

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. >>>

Warehouses Leased:

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

Warehouses Sold:

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

miami industrial sales

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.


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 dberkovitz@comreal.com.


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 >>>



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 >>>

Leave a Reply

Your email address will not be published. Required fields are marked *

Post comment