The year 2013 was about concrete evidence. Over 2,300,000 sq. ft. of warehouse space was delivered to the market in comparison to 2012 where only 538,000 sq. ft. was delivered. In addition, there is 1,600,000 sq. ft. now under construction. Although new space was added to our 229M sq. ft. of total inventory, the vacancy rate still declined to 6.3%. Positive absorption of 2,700,000 sq. ft. outpaced the newly constructed deliveries. These are all indicators of a very healthy market.
From the national perspective, things also look very positive. The vacancy rate decreased to 8.3% with a positive absorption over 50M sq. ft. The average asking rental rates slightly increased to $5.31 per sq. ft. There were forty lease transactions over the 500,000 sq. ft. mark. Sales prices of industrial buildings have also increased slightly to $52.55 per sq. ft.
The largest warehouse sold to an owner-user in Miami-Dade County in 2013 was located at 19400 West Dixie Highway. The total size is 111,691 sq. ft. The new owner is Modani Furniture. ComReal Miami sold the 2nd largest warehouse to an owner-user named Monaco Foods. That warehouse measured 75,526 sq. ft. Although these are very respectfully sized warehouses for our South Florida market, it is not very impressive when you look at the big picture. Users just simply did not buy large warehouses last year. Two of the main reasons are that A). they preferred to rent instead. and B). there is a low supply of large warehouses available for purchase.
The most significant lease transaction of the past quarter was Starboard Cruise Services’ long term lease of a 218,673 sq. ft. build-to-suit warehouse building located in Flagler Station. Completion of the new construction and occupancy will take place this summer.
In the 4th quarter of 2013, there were quite a few large sales transactions of significance including COFE Properties’ (from Coral Gables) acquisition of the Medley Palmetto Industrial Park and Hialeah Gardens Industrial Park from TA Associates Realty for $48,250,000 or about $56 per sq. ft. The buildings totaled about 865,000 sq. ft. The 2nd largest transaction was Cargo Venture’s disposition of Miami Cargo Park. MICAP, LLC (from Miami) purchased the 412,000 sq. ft. warehouse building for $31,800,000 or about $75 per sq. ft. Existing tenants included United Parcel Service and Floral Logistics. It is nice to see that both of these new owners are based right here in Miami-Dade County.
There is another interesting dynamic occurring in Miami’s industrial real estate market. Since the market is so strong and sales prices have increased significantly some of the more opportunistic owners are placing their properties on the market for sale who had not been willing to do so before. This year will continue to deliver more properties for prospective investors and owner-users to choose from. If you have been on the sidelines looking for a property to invest in then 2014 may be your year.
In case you missed our prior report, you may click this link for ComReal’s Miami Industrial Real Estate Market Report for the 3rd Quarter of 2013. >>>
Did you know? You can read every quarterly report for the past four years by the ComReal Miami Industrial Team by visiting www.MiamiWarehouseTeam.com. The link on the main page always directs you to the most recent report then proceed to each prior report.
PS Business Parks’ Flex Space Building at Miami International Commerce Center Leased 100% by ComReal:
In less than one year, PS Business Parks and the ComReal Miami Industrial Team brings The 8000 Building from 0% to 100% occupancy. The property is comprised of a 45,000 sq. ft. flex space building and is located at 8000 NW 25th Street within Miami International Commerce Center (MICC) in Doral. To read more about this successful story, please visit Miami Flex Space Building at MICC Leased. >>>
Miami Warehouses Leased in 4th Quarter 2013 (partial list):
|Tenant||Size SF||Property Address|
|Starboard||218,673||9290 NW 112 Avenue|
|Quality Custom Distributing||42,786||2200 NW 129 Avenue|
|Faith Freight||40,000||7950 NW 77 Court|
Miami Warehouses Sold in 4th Quarter 2013 (partial list):
|Buyer||Size SF||Property Address||Price||$ PSF|
|COFE Properties||864,889||8140 NW 74 Avenue||$48,250,000||$56|
|MICAP||420,372||3400 NW 74 Avenue||$31,800,000||$75|
|DCT Industrial||233,988||1400 NW 159 Street||$11,800,000||$51|
|Duke Realty||223,000||9601 NW 112 Avenue||$30,000,000||$134|
|TDH Realty||173,386||7500 NW 35 Terrace||$14,000,000||$80|
|Easton Group||116,041||2525 NW 82 Avenue||$10,050,000||$86|
|Procacci 1400||76,345||1400 NW 110 Avenue||$6,525,000||$85|
|FL 8455||62,903||8455 NW 30 Terrace||$2,788,000||$44|
|8101 FRED||45,030||8101 NW 21 Street||$3,300,000||$73|
Chris Spear and Edison Vasquez get Pinned!:
Congratulations to Chris Spear and Edison Vasquez of ComReal Miami for receiving their CCIM pins!!! The two industrial specialists have invested the past several years working on their portfolios and successfully passing the educational courses. ComReal supported the duo by reimbursing them for the courses as they were passed. They join Ed Redlich, CCIM and become the only three-person industrial team in Miami to have all earned the prestigious CCIM designation. More importantly, they are now better able to serve their clients with more experience, better knowledge and more affiliates in most every major city across the USA and the world. Read more about the CCIM Miami Industrial Team. >>>
Ed Redlich Elected President of RCA Miami for 2014:
We are proud to inform you that Ed Redlich has been elected the President of the Realtors Commercial Alliance (RCA) of Miami for 2014. Thanks to the previous leadership of John Dohm and Michael Silver, RCA Miami has increased its membership to over 1,600 members in South Florida.
Redlich is a native Miamian and 2nd generation Realtor having had two parents in the profession. His mother, Patty, worked in residential real estate and his father, Ron, also worked with ComReal. They have since retired and now reside in Central Florida. Both instilled a strong code of Realtor ethics with Ed including always doing what is best for the customer.
RCA Miami’s top priorities in 2014 include the following:
- New member recruitment.
- Commercial services.
- Government affairs and property rights.
Of most importance this year is the effort by Commercial Realtors to phase out the state sales tax on commercial leases and to abolish the double taxation (i.e. sales tax on top of property tax). Unbeknownst to many tenants, the state of Florida charges them a sales tax on top of the property tax. Not fair.
For more information, please visit RCA Miami’s website at www.miamire.com/commercial. >>>