The third quarter of 2017 ends with a slight increase in the average lease rate to $9.76 per sq. ft. and the vacancy rate remains the same at 4.1%. The positive absorption was only 174,347 sq. ft. bringing the annual total thus far to just under 900,000 sq. ft. Although the stats this year are not particularly impressive everyone still wants more industrial real estate assets in Miami.
Two large sales worth noting were Winn-Dixie’s sale-leaseback of their 968,487 sq. ft. facility in Gratigny for $59,000,000 and Seagis Property Group’s acquisition of two warehouses totaling 207,420 sq. ft. in Miami for $23,440,000. There were only two lease transactions over 100,000 sq. ft. which is not uncommon in our market.
Summertime and the Hurricane Irma recovery are now behind us and the market is now very active. Most of Miami’s industrial real estate market only experienced tropical storm conditions. Miami International Airport did record wind gusts of about 90 mph, but most buildings had very little to no damage. There was no effect on the overall market other than some delays for a week or two during the recovery time. In addition to some nominal landscaping damage, some of our customers did report some more serious electrical and roof issues with their buildings. Our friends in the agriculture industry in South Miami-Dade were much less fortunate. There was widespread destruction of nursery farms and groves. It may take a couple of years for some operations to fully recover.
If you would like to read last quarter’s report, please view: ComReal’s Miami Industrial Real Estate Report for Midyear 2017. >>>
Featured Property: The Deerwood Office Building for Lease and/or Sale
Our featured listing this quarter is The Deerwood Office Building and is represented by Patricia Quintana, CCIM. The property is located in the Deerwood Business Park in South Miami-Dade County, Miami, Florida. The building is about 25,000 sq. ft. with 11,700 sq. ft. that is available for lease on the ground floor. For more info, please visit The Deerwood Office Building. >>>
Coming soon! Dunham Bush recently broke ground on their new 100,000+ sq. ft. warehouse in the Homestead Park of Commerce!
Miami Warehouses Sold in 3rd Quarter 2017 (partial list):
| Buyer | Size SF | Property Address | Sale Price | $ PSF |
| CenterPoint Properties | 968,487 | 3300 NW 123 Street | $59,000,000 | $61 |
| Seagis Property Group | 207,420 | 5501-5505 NW 72 Avenue | $23,440,000 | $113 |
| Lucky Properties | 109,551 | 10700 NW 36 Avenue | $5,390,000 | $49 |
| Hialeah Tomatoes* | 55,600 | 21150 SW 167 Avenue | $3,445,000 | $62 |
| Daoud Investments | 52,230 | 10005 NW 58 Street | $6,400,000 | $123 |
| Calico 2017* | 47,500 | 3360 NW 110 Street | $2,935,000 | $61 |
| 7500 NW 25 ST | 44,408 | 7500 NW 25 Street | $3,500,000 | $79 |
| Prologis | 41,912 | 2800 NW 125 Street | $3,200,000 | $76 |
| WLPW2 LLC | 37,184 | 340 W 78 Road | $3,150,000 | $85 |
| FB Medley | 34,864 | 8205 NW 74 Avenue | $3,375,000 | $97 |
* Deals closed by the ComReal Miami Industrial Team
Miami Warehouses Leased in 3rd Quarter 2017 (partial list):
| Tenant Name | Size SF | Property Address |
| ECU Worldwide | 162,000 | 2401 NW 69 Street |
| Delta Apparel | 112,861 | 5801 E 10 Avenue |
| NexGen Aero | 88,680 | 2900 NW 112 Avenue |
| Solutions 2 GO* | 51,771 | 3200 NW 67 Avenue |
| LAX Floral Import | 30,000 | 1617 NW 84 Avenue |
| Worldwide Freight Logistics | 29,056 | 11200 NW 25 Street |
| Coastal International Logistics* | 25,000 | 2315 NW 107 Avenue |
* Deals closed by the ComReal Miami Industrial Team
Thanks again! Coastal International Logistics extends their lease for 25,000 sq. ft. at the Miami Free Zone and foreign trade zone (FTZ).
News Release: Warehouse in Redland, Florida SOLD!
August 2017 – ComReal sold The Redland Warehouse for $3,445,000. To learn more about this packing/refrigerated warehouse in South Miami-Dade and the transaction, please visit Warehouse Sold in Redland, Florida. >>>
Congratulations to our friends at Solutions 2 GO Logistics! They have renewed their lease for 51,771 sq. ft. at South Florida Logistics Center.
Society of Industrial & Office Realtors (SIOR) Independent Brokers Group of Florida:
“Let our network of local experts serve your industrial and office space needs anywhere in Florida.” – Ed Redlich, SIOR, Florida Chapter Past-President
