The average lease rate for warehouse space in Miami increased to $7.72 per sq. ft. from $7.54 per sq. ft. Although there were several significant lease transactions during this first quarter, the average vacancy rate remained the same. This was mainly due to the over one-half million square feet of new warehouse space that was delivered to the market. In addition, South Florida Logistics Center, Miami International Tradeport and Flagler Station will also complete new buildings in their parks. We can expect over one million square feet of total new space to be delivered before the end of the year.
The largest lease transactions of the first quarter included Interport Logistics’ lease of 150,000 sq. ft. in Beacon Lakes and Seafreight’s lease of 148,750 sq. ft. at International Corporate Park. For the first time since before the recession, a lease rate topped over $9 per sq. ft. for a class A, bulk warehouse space in Airport West Dade. The ComReal Miami Warehouse Team is pleased to report that we were involved in the largest purchase transaction so far this year for the 485,000 sq. ft. warehouse now known as Miami International Logistics Center. (Please read more about this story below). In addition, TA Associates Realty is offering a 2M sq. ft. portfolio of thirty-three warehouse buildings located in four industrial parks. There were several dozen bidders and is now currently under contract to multiple buyers.
Some tenants continue to renew their leases for longer terms hoping to lock in the current lease rates before they go up further. There are quite a few active buyers in the market as well looking to take advantage of the historically low interest rates. However, with so many institutional investment firms owning most of the larger, warehouse buildings in Miami it is increasingly difficult to find well-priced, functional properties available for sale. Ambitious buyers are having to look for properties that are available on an off-the-market basis as well as vacant land sites for custom, build-to-suit construction in order to get exactly what they want.
In case you missed our prior report, you may click this link for ComReal’s Miami Industrial Real Estate Market Report for the Year Ending 2012. >>>
Did you know? There are only four warehouses over 100,000 sq. ft. available on-the-market for sale in Miami-Dade County.
Did you also know? There is not one warehouse over 100,000 sq. ft. on-the-market available for sale or lease that has active rail service.
Warehouse in East Airport Sold:
Sold! ComReal is proud to announce the sale of the #1 largest warehouse building in Miami so far this year! The 485,000 sq. ft. warehouse closed for $11,250,000. The proud new owner is Gerard Keating of Keating Resources from Chicago. Please read more about the transaction and the future use of the property at Warehouse in Airport East Sold. >>>
Miami of Latin America and The Netherlands of Europe:
Did you know that Miami is to Latin America what the Netherlands is to Europe? Just as “Miami is the gateway to the Americas”, the “Netherlands is the gateway to Europe.” Miami has the relationships and trade routes to Latin America, South & Central America and the Caribbean; just like the Netherlands has with the rest of Europe. In February, Ed Redlich toured the Netherlands and Germany with a trade mission from Miami consisting of representatives from Port Miami and logistics providers. Read more about the story at Miami of Latin America and The Netherlands of Europe. >>>
Miami Warehouses Leased in 1st Quarter 2013 (partial list):
|Tenant||Size SF||Property Address|
|Seafreight||148,750||9950 NW 17 Street|
|Interport Logistics||146,744||12950 NW 25 Street|
|SMT Duty Free||50,000||8935 NW 27 Street|
|Toll Global Forwarding||33,731||8815 NW 33 Street|
|DGD Transport||30,000||1325 NW 78 Avenue|
|Trane US||29,250||2660 NW 89 Court|
Miami Warehouses Sold in 1st Quarter 2013 (partial list):
|Buyer||Size SF||Property Address||Price||$ PSF|
|Keating Resources||485,000||725 SE 9 Court||$11,250,000||$23|
|Megacenter||171,000||8600 NW South River||$7,000,000||$41|
|EWE||105,000||2330 NW 82 Avenue||$9,200,000||$87|
|Seagis Property||78,000||10400 NW 33 Street||$6,200,000||$79|
|Royal Wine||50,000||8265 NW 70 Street||$3,300,000||$66|
|Terreno Realty||49,000||12600 NW 107 Avenue||$5,300,000||$106|
|WK Cargo||35,000||8020 NW 60 Street||$1,250,000||$35|
|Esprit Miami||25,000||11475 NW 39 Street||$2,700,000||$108|
Redlich’s Industrial Report at CCIM Miami Commercial Real Estate Outlook Conference 2013:
Ed Redlich, CCIM delivered the Industrial Report at the Commercial Real Estate Outlook Conference hosted by the Miami District of Certified Commercial Investment Members (CCIM). Over 300 commercial real estate professionals were in attendance. An office broker stated that “Ed’s presentation actually made warehouses seem very interesting to me for the first time in my career”. Several of Redlich’s predictions have already been proven true. Click here for the complete presentation on what to expect this year in Miami’s industrial real estate market. >>>
Foreign Trade Zone Seminar on May 22nd:
Mark your calendar for May 22nd! ComReal Miami is a proud sponsor of this seminar on Foreign Trade Zones in Miami. The event will be held down the hall from our office at the Miami Free Zone in Doral.
ComReal welcomes Yarisley Morales to the Team!
Yarisley Morales was born in Cuba. She joined ComReal Miami in January with aspirations of helping the team and facilitating the day to day activities. She graduated from Florida International University in 2012 with a Bachelor of Business Administration in Marketing and Management. Yarisley knows that a crucial aspect to a successful business is effective communication with clients, and strives to provide great customer service. She is fluent in both English and Spanish.
Service Provider of the Quarter:
ComReal is a proud member of the Florida Customer Brokers & Forwarders. The FCBF was founded in 1960 by several customs brokers and freight forwarders in Miami. Now the organization is the most influential and active representative body of the Florida freight forwarding and customs brokerage community. FCBF provides communications between the trade community and the federal agencies in order to expand Florida’s trading communities at the local, state, and national level. Please visit their website at www.FCBF.com
<<< Please click here for a printable PDF version of this report. >>>