The new year has started very strong for the Miami industrial real estate market. The average lease rates have already increased to $8.53 per sq. ft. and the average vacancy rate fell to 5.2%. The net absorption for the 1st quarter was an astounding 1.4M square feet. The largest lease so far this year was Synergy Custom Fixtures lease of the 301,000 sq. ft. warehouse at 215 SE 10th Avenue in Hialeah. This property was formerly occupied by Lagassee Sweet and Banah Sugar. There have been three lease transactions over 100,000 sq. ft. so far this year. In 2014, there was only a total of three. The average Miami warehouse user does not typically occupy larger space.
The largest sale of the year was Barclays Capital’s disposition of Centergate at Gratigny also located in Hialeah at 6301 East 10th Avenue. Prudential Real Estate Investors closed on the deal at $95,750,000 or about $98 per sq. ft. This included the adjacent 29 acres which will be developed in the future. The existing warehouse is now occupied by Caterpillar Logistics, Bullet Line and Carnival Cruise Lines. Most of the new construction and new deals continues to be in the Medley and Airport West Dade sub-markets, but no longer in the City of Doral which has evolved into a live, work, play community with less focus on industrial.
Meanwhile, Florida Realtors and other trade organizations continue to lobby the state to reduce and/or eliminate the 6% state sales tax on commercial leases. Florida is the only state in the union that has such a tax. The state is also guilty of double taxation by taxing rent paid for property taxes as well. This is simply not fair. By eliminating the tax, more businesses will be encouraged to expand in Florida. Also, did you know that April 24th, 2015 is this year’s Tax Freedom Day? Tax Freedom Day® is the day when the nation as a whole has earned enough money to pay off its total tax bill for the year. To read more, visit The Tax Foundation. >>>
In case you missed our prior report, you may click this link for ComReal’s Miami Industrial Real Estate Market Report for the Year End 2014. >>>
New Listing! Miami Gardens Freezer/Cooler Warehouse for Sale/Lease:
The ComReal Industrial Team is pleased to announce our new listing of the Miami Gardens Freezer/Cooler Warehouse. This is the largest, available refrigerated warehouse for sale or lease in South Florida. The warehouse is 80,000 sq. ft. and could have active CSX Railroad service. For more information including an aerial video tour, please visit the Miami Gardens Freezer/Cooler Warehouse. >>>
Miami Warehouses Leased in 1st Quarter 2015 (partial list):
| Tenant Name | Size SF | Property Address |
| Synergy Custom Fixtures | 301,000 | 215 SE 10 Avenue |
| Vanguard Logistics | 135,000 | 9575 NW 117 Avenue |
| EcoLab | 126,948 | 11250 NW 122 Street |
| Friction Zone Motorsports | 38,000 | 4275 NW 77 Avenue |
| Comet Delivery | 25,000 | 9705 NW 108 Avenue |
* Transaction(s) brokered by The ComReal Companies.
Miami Warehouses Sold in 1st Quarter 2015 (partial list):
| Buyer | Size SF | Property Address | Sale Price | $ PSF |
| Prudential Real Estate | 978,000 | 6301 East 10 Avenue | $95,750,000 | $98 |
| Reyes Holdings | 341,124 | 10055 NW 12 Street | $35,000,000 | $103 |
| Lincoln Advisory Group | 275,454 | 9400 NW 104 Street | $17,850,000 | $65 |
| Reyes Holdings | 126,479 | 1000 Park of Commerce | $9,000,000 | $71 |
| Terreno Realty | 107,000 | 10100 NW 25 Street | $9,900,000 | $93 |
| Terreno Realty | 89,000 | 8105 NW 77 Street | $8,500,000 | $96 |
| Dedienne Aerospace | 52,466 | 2500 NW 74 Avenue | $4,260,000 | $81 |
| Metals, Inc | 50,260 | 3758 NW 54 Street | $2,020,000 | $40 |
| Case Holdings | 49,533 | 9202 NW 106 Street | $4,350,000 | $88 |
| Custom Veterinary Services | 49,290 | 6955 NW 36 Avenue | $2,550,000 | $52 |
| Premier 8020 / GPS Air | 37,059 | 8020 NW 60 Street | $4,550,000 | $123 |
| Doral Warehouse Property | 28,228 | 8269 NW 54 Street | $2,600,000 | $92 |
| Kamil Investments | 26,573 | 1400 NW 96 Avenue | $2,100,000 | $82 |