According to ComReal, the Miami-Dade County Industrial market continues to remain strong at the end of the third quarter of 2013 with the average rental rate increasing to $8.01 per sq. ft. and the average vacancy rate decreasing to 6.1%. Even with the new construction of multiple warehouses, our market is keeping up with nearly 1.5M sq. ft. of positive absorption in the past three months. In other words, warehouses are filling up faster than they can construct new ones. This is driven by a multitude of factors including 1) an increase in international trade, 2) shifts in supply chains and logistics (especially perishables via both air and sea), 3) improvements to our infrastructure including rail, Port Miami, MIA and expressways, and 4) investments in industrial real estate by institutional developers.
Unfortunately, some industrial properties continue to linger on the market for an extensive period of time, which is usually due to dysfunctional features and/or overpricing. There are also several bulk-sized warehouses spaces which have been available for well over one year due to lots of competition in this size range and not enough demand from larger users. ComReal recently represented a client seeking about 90,000 sq. ft. in Airport West Dade and/or Medley. There were twenty (20) spaces in the Site Selection package!
The largest lease transaction of the quarter was Ryder Logistics, who leased an entire building consisting of 102,000 sq. ft. at Beacon at 97th Avenue Business Park. The purpose was to provide logistics services for their client, T.J. Maxx. The most significant sale, in our opinion, was Bristol Group’s acquisition of the former GOYA warehouse consisting of over 145,000 sq. ft. Bristol is now renovating the building in order to attract new tenants. This warehouse happens to be the second property that they have purchased this year from GOYA along NW 92nd Avenue in Doral.
Across the country, everyone is talking about the new construction in Miami. Most of the new development is being done on a speculative basis consisting of larger spaces of 50,000 sq. ft. and up. What we have noticed in the past quarter is the announcement, by two developers, to deliver smaller spaces between 10,000 and 20,000 sq. ft. This is a very smart decision since there is a low supply and high demand for spaces in this size range. You will find these new warehouses being constructed at South Florida Logistics Center (by Flagler Development) and Transal Park (by Gibson Development).
We are excited to report that two, very impressive industrial properties are now available on the market for sale. The first is Westpointe Business Park and the second is the Americas’ Gateway Park Building. Both are located in Doral. You can read more below about all of the details of the AGP Building which is a ComReal exclusive listing.
In case you missed our prior report, you may click this link for ComReal’s Miami Industrial Real Estate Market Report for Mid-Year 2013. >>>
Miami Americas’ Gateway Park Warehouse/Office Building w/ Refrigeration for Sale or Lease:
First time on the market for sale or lease! This Class A Warehouse/Office Building known as The Americas’ Gateway Park Building is located at 1800 NW 89th Place within Americas’ Gateway Park in the City of Doral. The total size is 102,310 sq. ft. making it one of only several, large warehouses available for sale in Miami-Dade County. The property’s main features includes two warehouse coolers totaling 52,000 sq. ft. of refrigerated area and over 30,000 sq. ft. of office space in a three-stories, glass atrium with balconies and stunning views of the Fingerlakes. For more information, please visit the property’s website at www.AGPBuilding.com >>>
Be sure to check out the virtual tour video!
Monaco Foods Buys Miami Warehouse for Americas’ Expansion:
ComReal Miami’s Industrial Team represented Monaco Foods, Inc. in the purchase of its new warehouse in Miami, located at 1120 NW 165th Street in Sunshine State Industrial Park. The total size of the warehouse is 75,526 sq. ft. which makes it one of the largest sales to an owner-user in Miami-Dade County so far this year. Additionally, this was one of the last few large warehouses, above 50,000 sq. ft., available for purchase for an owner-user. For more information on this transaction, please read Monaco Foods Buys Warehouse for Americas’ Expansion. >>>
Miami Warehouses Leased in 3rd Quarter 2013 (partial list):
|Tenant||Size SF||Property Address|
|Ryder Logistics||102,844||1904 NW 97 Avenue|
|LaserShip, Inc.||58,000||9905 NW 17 Street|
|Total Cargo Services||56,135||10200 NW 110 Avenue|
|Tigers USA Global Logistics||44,800||11014 NW 33 Street|
|Marine Harvest||40,044||8500 NW 17 Street|
|GLB Trucking||39,651||1400 NW 159 Street|
|Rana Furniture…………………||61,700||7821 NW 67 Street|
|Global Perishables||51,000||1665 NW 102 Avenue|
Miami Warehouses Sold in 3rd Quarter 2013 (partial list):
|Buyer||Size SF||Property Address||Price||$ PSF|
|Swezy Realty||162,515||4709 NW 72 Avenue||$9,200,000||$56|
|Apilcor Investment||32,583||9800 NW 79 Avenue||$2,350,000||$72|
|NA & VA Investments||29,385||3515 NW 113 Court||$3,400,000||$113|
|Lipari Investment||27,210||8800 NW 15 Street||$2,125,000||$78|
|Monaco Foods||75,526||1120 NW 165 Street||N/A||N/A|
|Bristol Group||145,000||1400 NW 93 Avenue||$10,600,000||$76|
Florida Governor Rick Scott Visits ComReal Miami Office:
Florida Governor Rick Scott visited the ComReal Miami commercial real estate office at the Miami Free Zone on Wednesday, October 2nd. The Governor was there to meet small businesses for the Business Expo conducted by the Florida Foreign Trade Association. By the way, it seems that the Governor might be in support of phasing out the 6% Florida State Sales Tax on commercial lease agreements over a six years period. As of now, Florida is the only state with such a tax which is used against us when competing for corporate relocations and expansions.
Service Provider of the Quarter:
Congratulation to the Airport West Business Association, Inc. for successfully fending off the annexations by various cities (at least for now). “The Revenuers” will return… guaranteed. The cities of Miami Springs, Medley, Virginia Gardens and Doral want to add territory; increase their ad valorem tax revenue and are targeting the commercial areas west of the airport and some additional areas west of the Palmetto Expressway. It is really too bad since the commercial property owners often do not live in these areas so they have no vote! AWBA is committed to tracking all related news and information about the annexation proceedings so interested parties can be informed. AWBA is a Public & Private Coalition committed to maintaining a voice for businesses, property owners, and residents of the Miami area west of Miami International Airport. For more information, please email them at email@example.com or call at 305-350-5690 or visit www.airportwest.org.