Miami-Dade County experienced another very strong quarter increasing the total positive absorption of warehouse space to over 1,000,000 sq. ft. at the mid-year mark. The vacancy rate is now 7.1% which is down from 7.5% in the past quarter. The average lease rates have increased slightly to $7.42 psf. There are six warehouse buildings totaling nearly one million square feet now under construction in the Airport West Dade and Medley sub-markets. All of these developers are constructing on a speculative basis only. In addition, Flagler Development may soon break ground on it’s first building at South Florida Logistics Center next to Miami International Airport. So the question now is, when the new space is delivered, will the vacancy rate increase or will warehouse users keep absorbing more space causing the vacancy rate to decrease even further?
It is possible that an additional 1,000,000 sq. ft. of warehouse space might be absorbed by the end of the year since there are dozens of companies still actively looking to lease or purchase additional warehouse space. So, if you are involved with the Miami industrial real estate market in some manner, then there are good reasons to be optimistic. In addition to warehouse buildings filling up, manufacturing is picking up in Florida while the unemployment rate is going down. Despite the typically-slow summer season combined with a presidential election year, most indicators point to a strong, vibrant market for the remainder of 2012.
The largest industrial transaction of the 2nd quarter was Prudential Real Estate’s acquisition of three warehouses in International Corporate Park in Doral. The class A buildings totaled about 340,000 sq. ft. in size. The seller was Prologis. The total sales price was $46,600,000 or about $137 psf. The properties were 100% fully occupied; the main tenant is B/E Aerospace.
If you would like to read more about the prior three months, please read ComReal’s Miami Industrial Real Estate Market Report for the 1st Quarter, 2012. >>>
Here is an article by the Miami Today News including a recent interview with Ed Redlich in regards to industrial warehouse construction in Miami-Dade. >>>
This is a MUST watch video filmed by Travel Channel during the construction of the Port Miami Tunnel. >>>
For a partial list of warehouses in Airport West Dade over 20,000 sq. ft. that were sold or leased, please see below.
Miami Warehouses Leased:
|Tenant Name||Property Address||Size Sq. Ft.|
|Intcomex||3505 NW 107 Avenue||173,000|
|American Fine Foods||6905 NW 25 Street||146,000|
|Agility Logistics||11010 NW 30 Street||93,000|
|3PD, Inc.||12650 NW 25 Street||79,000|
|SYNNEX||12650 NW 25 Street||60,000|
|Cargo Logistics||1701 NW 87 Avenue||57,000|
|Horizon Plywood||9710 NW 110 Avenue||44,000|
|Gaming Logistics||2610 NW 89 Court||31,000|
Miami Warehouses Sold:
|Buyer||Property Address||Size Sq. Ft.||Sales Price||$ PSF|
|Prudential||9825 NW 17 Street||340,000||$46,600,000||$137|
|Controller USA||8461 NW 61 Street||59,000||$2,100,000||$35|
|DCT Industrial||11400 NW 34 Street||50,000||$4,300,000||$86|
|Tairo||8100 NW 29 Street||46,000||$3,600,000||$78|
|Prologis||11200 NW 138 Street||40,600||$2,842,000||$70|
|NCM Real Estate||8125 NW 64 Street||22,000||$1,680,000||$78|
Graph for Sales Prices of Industrial Properties in South Florida:
In our last report, we noted that the available inventory of good, functional properties has been decreasing. This quarter, it appears that the trend for sales prices is now moving upward. This would suggest that now is a good time to purchase a warehouse before prices increase further and before the good, functional warehouses are purchased by someone else other than you. Also keep in mind that interest rates are relatively low giving buyers more purchasing power.
New Listings on the Market:
Customer Seeks +/- 100,000 sq. ft. Warehouse to Purchase:
We have a customer that seeks to purchase a warehouse for their own use. For the past few months, we have previewed every property that is now listed on the market with a co-operating real estate broker. We are seeking your help in identifying a property that is available on an off-the-market basis. Below is the requirement:
- Total Size: from 75,000 to 125,000 sq. ft.
- Loading: Dock level.
- Class: A or B only.
- Use: Distribution and Warehouse Storage.
- Location: Miami Airport West Dade Sub-Market.
- Closing: 2012-2013.
Please contact Ed, Chris or Edison of the Miami Warehouse Team at 786-433-2380 anytime. All discussions will be kept completely confidential. If your property is already listed with a broker, then there is no need to contact us since we are already aware. Thank you very much.
Service Provider of the Quarter:
Please visit our friends and clients, W. E. Johnson Equipment Company, for all of your needs for forklifts, boat lifts, transporters, lift trucks, compressors, gantry cranes, excavators, hoists, tractors and much more construction equipment.