In ComReal Miami’s year end report for 2011, we wrote about the “return of the landlords” and about the announcements of speculative construction for several, new warehouse projects. In 2012, the theme was absolutely “breaking ground!” as eight new projects commenced. It was very good to see vertical construction in Miami occur once again. ComReal reports that the total amount of warehouse space that was completed and/or nearly-completed in 2012 was about 2,200,000 sq. ft. In addition, new warehouse buildings are going to be constructed in 2013 in Beacon Lakes, Flagler Station, Miami International Tradeport, Airport North Industrial Park, South Florida Logistics Center and Miami International Logistics Center. This year we can expect to see more new construction, some in-fill developments, some re-developments of existing warehouses plus even some demolitions of older, non-functional buildings.
In comparison to the end of the year in 2011, 2012 ended with slight increases to both the average sales price and lease rate; $64 per sq. ft. and $7.54 per sq. ft. respectively. The vacancy rate dropped from 7.9% to 6.7%. Although the positive absorption was only 2,080,000 sq. ft. (down from 2,508,000 sq. ft.), that is a very good sign considering that we had new warehouse space delivered to the market.
The grand finale of the year, was the late-December closing on 45 acres located at 7500 NW 82nd Place in Medley by L&B Realty Advisors. The price was $45,000,000 or about $11.75 per sq. ft. plus the cost of the additional site work that will be needed. Butters Construction & Development will be constructing over 900,000 sq. ft. of warehouse space for what is now being branded as Airport North Industrial Park.
Miami continues to be one of the most dynamic markets in the entire country. No city in the USA may benefit more than Miami from the Foreign Trade Agreements (FTA’s) and Foreign Trade Zones (FTZ’s) thanks in part to the U.S. Department of Commerce. The federal, state and local investments to our infrastructure and transportation systems will secure the foundation for developing our overall industrial real estate market.
On a side note, our team appreciates all of your support this past year. We look forward to working with you in 2013 and beyond. Like many of you, the past few years have been challenging for our team, our staff and our families. However, with your support and patronage, we were able to re-build ourselves to help serve you better than ever. Looking back, the work was never easy, but we always did business the right way. We would not have it any other way. Thank you very much.
In case you missed our prior report, you may click this link for ComReal’s Miami Industrial Real Estate Market Report for the 3rd Quarter, 2012. >>>
New Construction Report:
The ComReal Miami Industrial Team is pleased to present this report on new construction of industrial warehouses in Miami. At the time of this report, there was over 1,000,000 sq. ft. of newly-completed and/or nearly-completed warehouse buildings in 2012. For our brief summary of the report, please visit New Industrial Warehouse Construction in Miami. >>>
Miami International Commerce Center – 8000 Flex Space Building:
ComReal Miami is pleased to announce their representation of PS Business Parks for the lease of their 45,000 sq. flex space in Doral. The Doral flex space building is comprised of both office and warehouse space that is divisible from about 7,500 sq. ft. and up. The property is located at 8000 NW 25th Street in Miami International Commerce Center (MICC) in Doral, Florida.Visit the property website at www.FlexSpaceMiami.com >>>
Miami International Logistics Center:
ComReal is pleased to announce the pending construction of a new class A warehouse named Miami International Logistics Center. The class A, bulk-sized 400,000 sq. ft. building will be one of the closest warehouses to Port Miami and Miami International Airport. The twenty acre site is located just off the Airport Expressway (State Road 112) which is less than twenty minutes from the port and airport. The completion date of this nearly $40M project is expected by May 2014. If having a warehouse near Port Miami is important for your Miami drayage operations then this is the property for you. Please visit Miami International Logistics Center. >>>
Miami Commercial Real Estate Event(s):
Join the the Miami-Dade District of the Certified Commercial Investment Members (CCIM) for their annual Outlook Conference. Expect 300 commercial real estate professionals in attendance. Ed Redlich, CCIM, SIOR will be presenting the Industrial Report. For more details and/or to RSVP visit: CCIM Miami Commercial Real Estate 2013 Outlook Conference. >>>
South Florida Distribution Warehouse Sold:
Congratulations to Ronald “the Silver Fox” Winokur of The ComReal Companies for the successful closing of this South Florida warehouse formerly known as Carl’s Furniture. The sales price was $12,700,000 making it one of the largest sales for 2012. The mixed use building totals over 400,000 sq. ft. Read more about the transaction at South Florida Warehouse. >>>
Miami Warehouses Leased in 4th Quarter 2012 (partial list):
|Tenant||Size SF||Property Address|
|Pacific Services & Trading||35,160||12200 NW 25 Street|
|University of Miami||70,500||6891 NW 74 Street|
|Towne Air Freight||67,000||1530 NW 98 Court|
|TM Telecom||32,000||10205 NW 19 Street|
Miami Warehouses Sold in 4th Quarter 2012 (partial list):
|Buyer||Property Address||Size SF||Price||$ PSF|
|Genet Property Group||10510 SW 185 Terrace||220,000||$9,000,000||$41|
|UBS AG||10000 NW 15 Street||209,000||$26,000,000||$124|
|Bristol Aventura LLC||20725 NE 16 Avenue||206,000||$17,260,000||$83|
|Terreno Realty||7600 NW 26 Street||138,000||$12,100,000||$88|
|Exporther Bonded Corp||2323 NW 72 Avenue||82,261||$6,000,000||$73|
|Industrial Income Trust||2750 NW 84 Avenue||70,000||$7,050,000||$100|
|SNJ Real Estate||4601 NW 77 Avenue||54,000||$4,250,000||$80|
|Holem Realty Group||2500 NW 74 Avenue||52,466||$3,000,000||$57|
|Professional Products Group||6990 NW 25 Street||50,000||$4,160,000||$83|
|STB Properties LLC||8900 NW 33 Street||49,708||$5,050,000||$101|
|Ring Power Coporation||3400 NW 77 Court||46,059||$3,447,000||$74|
|WK Cargo||8020 NW 60 Street||35,000||$1,250,000||$35|
|Contreras y Compania||2685 NW 105 Avenue||15,000||$1,630,000||$108|
Service Provider of the Quarter:
If you are considering a financial consultant, we recommend consulting with Mr. Eric Garcia of Popular Investments in Miami. Eric can assist you by making educated choices. There are voluminous stocks, bonds and other investments to select from; each with various degrees of rewards versus risks. Both new and seasoned investors should consider retaining their own financial adviser. Popular Investments will serve your needs and help make you achieve the financial success you deserve. For more info, please contact Eric J. Garcia at 305-335-5333.