Midyear into 2017 and the average rental rate for Miami warehouse space slightly increases… grudgingly. Although some landlords have been able to increase rates for their warehouses, tenants and their respective brokers fight to keep the average under $10.00 per sq. ft. Institutional landlords are fairly disappointed that rates have not increased higher as they had forecast. Positive absorption this quarter was only 90,000 sq. ft. which helps the tenant’s side of the argument. Positive absorption totals almost 700,000 sq. ft. for the year. A healthy market is about 2,000,000 sq. ft. per year so we are well under this. However, we anticipate a strong 3rd quarter as there are several transactions getting wrapped up at the time we publish this report.The one recent lease deal that is worth mentioning is Custom Space. They leased 85,000 sq. ft. in Beacon Industrial Park in Doral. Custom Space is new-to-market and they offer a We Work concept for warehouse spaces with flexible sizes and terms. We wish them well here in Miami.
One of the largest sales transactions was Miami International Logistics Center in Hialeah. ComReal had originally sold the 506,300 sq. ft. warehouse to Keating Resources for $11,500,000 in 2013. (Source: Warehouse in Airport East Sold!). The ownership renovated the property and stabilized this asset for disposition. The ComReal team continued their efforts with the leasing assignment and the property was about 90% occupied upon the sale. Lincoln Property Group just acquired the property for $27,380,000. What a great story?!
If you would like to read last quarter’s report, please view online at: ComReal’s Miami Industrial Real Estate Report for the 1st Quarter 2017. >>>
Featured Property: Homestead Warehouse
The Homestead Warehouse measures 64,109 sq. ft. and is located in The Homestead Park of Commerce. The property is for sale or lease. If you are considering a building anywhere in Miami-Dade County, then you should take a look at this property.
“Special thanks to our friends at Rosy Freight who leased their 23k SF warehouse building to Tile Empire!” – Ed Red, Edison & Chris
Miami Warehouses Sold in 2nd Quarter 2017 (partial list):
| Buyer | Size SF | Property Address | Sale Price | $ PSF |
| MDH Partners | 600,152 | 1400 NW 167 Street | $44,000,000 | $73 |
| Lincoln Property Company | 506,300 | 725 SE 9 Court | $27,380,000 | $54 |
| Prologis | 343,553 | 12300 NW 32 Avenue | $25,750,000 | $75 |
| CenterPoint Properties | 306,703 | 10400 NW 122 Street | $106,000,000 | $346 |
| EWE Airport North Logistics Center | 182,000 | 9001 NW 87 Avenue | $21,846,000 | $120 |
| Gramercy Property Trust | 119,000 | 7321 NW 75 Street | $18,000,000 | $151 |
| Prologis | 117,052 | 12805 Le Juene Road | $16,000,000 | $137 |
| Prologis | 102,868 | 3201 NW 110 Street | $7,000,000 | $68 |
| Moonbeam Properties | 32,646 | 8225 NW 80 Street | $4,600,000 | $141 |
Miami Warehouses Leased in 2nd Quarter 2017 (partial list):
| Tenant Name | Size SF | Property Address |
| Custom Space | 85,000 | 2900 NW 112 Avenue |
| Ice River Springs | 84,369 | 10701 NW 140 Street |
| *Synnex | 60,316 | 12650 NW 25 Street |
| Fidelity | 56,000 | 12300 NW 32 Avenue |
| *Dufry | 35,899 | 2335 NW 107 Avenue |
| *Hydrofarm | 34,700 | 12600 NW 115 Avenue |
| * Deals closed by the ComReal Miami Industrial Team. | ||
“Win-win-win! The ComReal Team successfully assigned a 36k SF warehouse space at Miami Free Zone on behalf of Innovair Corp. to Dufry America.” – Patricia & Ed Red
News Release: American Consolidation Logistics Leases 93k SF Warehouse Space in South Florida Logistics Center
Strong efforts by the ComReal team, led by Partner and Managing Member, Edward Redlich, led to the leasing of a third Miami warehouse location for international produce importer, American Consolidation & Logistics (ACL). The 93,799-sq. ft. facility located at 3200 NW 67th Avenue in the South Florida Logistics Center. For more info on this deal, please read the full story at American Consolidation Logistics Leases Warehouse Space in South Florida Logistics Center. >>>
“Congrats to our client, Synnex, who renewed their lease for a 60k SF warehouse space with Prologis at Beacon Lakes!” – Mort
News Release: The ComReal Companies expands with ComReal Miami – Doral
Pictured: Edison, Chris, Yarisley, Cindy, Ed Red, Mort and Patty.
ComReal, a leading commercial real estate company founded in South Florida in 1979 by Stephen H. Smith, has expanded operations with the opening of ComReal Miami–Doral, LLC. The new operation located at 2315 NW 107th Avenue, Suite #1M02, Mailbox 126, Doral, Florida 33172 is headquartered inside the Miami Free Zone building. ComReal Miami–Doral, LLC was founded and will be managed by Principals: Edward Redlich, Chris Spear, and Edison Vasquez. For more details on this story, please visit ComReal Miami Doral Commercial Real Estate Expands. >>>
“Lennox Industries renewed it’s lease with Seagis Property Group for 11k SF at Deerwood Commerce Center. You cannot go wrong selling air conditioning in Florida!” – Ed Red
“Deals = more Deals” by Ed Redlich
So how exactly does doing deals equal to doing more deals? You’ve probably heard of the saying “90% of your business comes from 10% of your customers”. The concept of “deals = more deals” is similar, but it goes much deeper than this. Learn more about Ed Redlich’s formula at “Deals = more Deals”. >>>
Patricia Quintana attending the United Fresh Expo in Chicago to learn more about the perishables and cold supply chain industry.