For the first time, the average asking gross lease rate for warehouse space in Miami is now above the $10.00 per sq. ft. mark (but, just barely). Strong market forces and higher rents for new buildings have helped make this happen. Landlords will continue to push rates even higher, however this first quarter shows a slight increase of the average vacancy rate to 4.3% and the positive absorption was only 10,422 sq. ft. which result in tenants having some leverage during negotiations.
So far this year, there have been three large lease transactions over 100,000 sq. ft. which included Nestle Waters, GRM Information and Kuehne + Nagel. The Miami industrial market does not see too many transactions over 100,000 sq. ft., so this is an encouraging way to start off the new year.
The most noteworthy sale was Duke Realty’s acquisition of the 35.1 acres site formerly owned by Universal Forest Products for $35,700,000 or about $23 psf. The site at 10300 NW 121 Way in Medley is currently being operated as a lumberyard in over 450,000 sq. ft. of warehouses. Duke is planning a future industrial development here. The largest industrial assets on-the-market now are the first three new warehouses within Countyline Corporate Park.
If you would like to read last quarter’s report, please view: ComReal’s Miami Industrial Real Estate Report for the Year End 2017. >>>
Please join Edison Vasquez and Ed Redlich at Florida International University, on May 15th, for a discussion on the industrial real estate market in Miami, as well as a career in commercial real estate.
Miami Warehouses Leased in 1st Quarter 2018 (partial list):
|Tenant Name||Size SF||Property Address|
|Nestle Waters||257,000||8501 NW 80 Street|
|GRM Information||122,915||15801 NW 49 Avenue|
|Kuehne + Nagel||109,075||10701 NW 140 Street|
|DSV Air & Sea||95,000||12200 NW 25 Street|
|Tropical Foods||64,000||1665 NW 102 Avenue|
|HardTen||47,500||3360 NW 110 Street|
|Excel Cargo Services||44,284||1800 NW 129 Street|
* Deals closed by the ComReal Miami Industrial Team
Featured Listing! The Hellman Logistics Office Space (for Lease).
ComReal is pleased to announce our recent assignment to lease a portion of the office space located within the Hellman Logistics Building at 10450 Doral Boulevard. There is 3,000 sq. ft. of office space coming available. Please contact Patricia Quintana, CCIM at 305-815-3376 for more info and/or arrange a tour.
Please mark your calendar for Wednesday, May 16th for a presentation on FDA best practices for distribution of refrigerated food products at PortMiami. Sponsored by ComReal!
News Release! 47,500 sq. ft. Warehouse in Gratigny Leased!
The Miami Industrial Team at ComReal announces the completion of a long-term lease for the 47,500 sq. ft. building, known as the Gratigny Warehouse, at 3360 NW 110th Street in Miami, Florida in Seaboard Industrial Park. Only six months after being sold and having gone through renovations, the building will now be occupied by HardTen Clothing Inc., a clothing company relocating its headquarters from New York. This brings the building to 100% occupancy. About 40-50 new jobs will be created. We are experiencing the trend where companies are fleeing states with high taxes and regulations then relocating to Florida. For more info on this story, please visit The Gratigny Warehouse Leased! >>>
Congratulations to our friends and neighbors, Coastal International Logistics, for renewing their lease here at the Miami Free Zone in Doral!
Florida Business Rent Tax Reduced!
Thanks to the lobbying efforts of Florida Realtors and other pro-business organizations, the state sales tax on rent has been reduced in Miami-Dade County from 7.0% to 6.8%. In addition, HB 7087 was recently passed in the state legislature further reducing the tax to 6.7% commencing next year. No other state has a tax on commercial rent. Plus, it is a sales tax on top of property taxes. Not fair! Our goal is for this tax to be 0.0%.