Miami industrial market report

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 gardens freezer warehouse

 

Miami Warehouses Leased in 1st Quarter 2015 (partial list):

Tenant NameSize SFProperty Address
Synergy Custom Fixtures301,000215 SE 10 Avenue
Vanguard Logistics135,0009575 NW 117 Avenue
EcoLab126,94811250 NW 122 Street
Friction Zone Motorsports38,0004275 NW 77 Avenue
Comet Delivery25,0009705 NW 108 Avenue

* Transaction(s) brokered by The ComReal Companies.

 

Miami Warehouses Sold in 1st Quarter 2015 (partial list):

BuyerSize SFProperty AddressSale Price$ PSF
Prudential Real Estate978,0006301 East 10 Avenue$95,750,000$98
Reyes Holdings341,12410055 NW 12 Street$35,000,000$103
Lincoln Advisory Group275,4549400 NW 104 Street$17,850,000$65
Reyes Holdings126,4791000 Park of Commerce$9,000,000$71
Terreno Realty107,00010100 NW 25 Street$9,900,000$93
Terreno Realty89,0008105 NW 77 Street$8,500,000$96
Dedienne Aerospace52,4662500 NW 74 Avenue$4,260,000$81
Metals, Inc50,2603758 NW 54 Street$2,020,000$40
Case Holdings49,5339202 NW 106 Street$4,350,000$88
Custom Veterinary Services49,2906955 NW 36 Avenue$2,550,000$52
Premier 8020 / GPS Air37,0598020 NW 60 Street$4,550,000$123
Doral Warehouse Property28,2288269 NW 54 Street$2,600,000$92
Kamil Investments26,5731400 NW 96 Avenue$2,100,000$82

 

 

 

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