Summary:

The 2016 industrial real estate market in Miami was full of uncertainty given both the national economy and the US presidential election. Folks did not yet know if our republic was voting for more continued governmentism or Americanism again. You may be surprised at how many significant decisions concerning real estate were on hold…until now. We are living in an era that none of us have ever experienced let alone predicted. 2017-2018 will be the era of de-regulation, less taxation and more trade (free and fair). Expect both domestic and global markets to improve which Miami greatly benefits from given it’s unique location within the trade routes and our relationships around the world. This will transcend into the warehouse market. Lease rates and sales prices will continue to increase slightly for the foreseeable future. Let’s make America…and the Miami industrial real estate market great again!

Every quarter in 2016 experienced a raise in the average lease rate and a fall in the overall vacancy rate. The year ends at $9.56 per sq. ft. and 3.7% respectively. In comparison to 2015, the average lease rate was $9.01 per sq. ft. and the vacancy rate was 4.7%. A fairly solid improvement from one year to the next. There was about 2.5M sq. ft. of positive absorption which is healthy, but less than the 3.9M sq. ft. in 2015. Nearly 3M sq. ft. of new warehouse space was delivered this year which is just above the approximate 2M sq. ft. that was delivered last year. In other words, warehouse spaces are being occupied at a faster pace than developers are constructing them. This being said, the costs for industrial land and development are incredibly high plus there is enormous competition for the 50,000+ sq. ft. class A spaces which hold those lease rates down. In our opinion, there is the most need for +/- 5,000 sq. ft. dock-height warehouse spaces. The Panama Canal expansion, more trade with Cuba, the e-commerce and marijuana industries may each likely have significant impacts on the Miami warehouse market this year. If you would like to read last year’s report, please view online at: ComReal’s Miami Industrial Real Estate Report for the Year End 2015

By far the most impressive lease in the 4th quarter of 2016 was KLX Aerospace’s lease of a 500,000 sq. ft. warehouse building in Countyline Corporate Park in north Miami-Dade. KLX will be the first tenant in the park. Flagler Development will construct the new build-to-suit warehouse. The most significant sale in the 4th quarter to close out the year was the acquisition of 55 acres by Mr. Armando Codina. As most of you know, Mr. Codina is a legend and has played an integral role in the development of Miami’s industrial parks including Beacon Lakes, Beacon Centre and Beacon Industrial Park. His latest project will be aptly named Beacon Logistics Park. The property is located at NW 145th Street & 107th Avenue in Hialeah Gardens; northwest Miami-Dade County. Condotte America Industrial Properties sold the property for $28.5M or about $12 per sq. ft. Mr. Codina will construct about one million square feet of class A warehouse spaces featuring 54′ x 50′ column spacing; 32′ clear ceilings and building depths from 160′ to 210′ feet. The first warehouse will be delivered in 2018.

“Congratulations to Interport Logistics with their lease of 80,000 sq. ft. warehouse space in Hialeah! This is an expansion of their main location and also has Foreign Trade Zone (FTZ) status. Special thanks to Keating Resources! Thank you both very much.”
– Ed Redlich, ComReal

Miami Warehouses Sold 4th Quarter 2016 (partial list):

Miami Warehouses Leased 4th Quarter 2016 (partial list):

* Deals closed by the ComReal Miami Industrial Team.

“Congratulations to Garces & Garces Cargo for subleasing 20,000 sq. ft. at South Florida Logistics Center!!! Unbeatable location next to MIA for perishables distribution. The supply of refrigerated warehouses here in Miami is very limited.”
– Edison Vasquez, ComReal

Let’s Make A Deal!

Client seeks new 100,000 to 150,000 Sq. Ft. refrigerated warehouse for lease or purchase. Details are listed below and please let us know if you have a property that would suit these requirements. Note: if your property is listed by a co-operating broker then we are already aware. Thank you very much.

Featured Property: Miami Free Zone and Foreign Trade Zone (FTZ)

ComReal is pleased to announce that it will assist the Miami Free Zone with its leasing efforts. The Miami Free Zone consists of 850,000 sq. ft. of office, showroom and warehouse spaces. The property is located at 2315 NW 107th Avenue in Doral, Florida. In addition, the Miami Free Zone is within Foreign Trade Zone (FTZ) #32 which offers tenants the ability to move products from countries more easily. For more information, please visit:
www.MiamiFreeZone.com

“The Miami Free Zone is the only building of it’s kind in the United States. It is more than just a property, it is truly a community of different businesses working together” states Patricia Quintana, CCIM, Leasing Director. Ms. Quintana will lead the leasing assignment for ComReal and the Miami Free Zone. “We enjoy watching businesses from all over the world trade within their offices or in the main hall over a cafecito”. To better serve the Miami Free Zone and it’s visitors, ComReal has relocated its office within the Miami Free Zone to Suite #1M02.

Office and showroom spaces range from 800 to 4,000 sq. ft. Warehouse spaces are from 4,000 sq. ft. and up. The Miami Free Zone offers one of the most secure locations in all of Miami to do business making this safe for both employees and merchandise. There are several security guards present at all times. Other features of the property include abundant, free parking; larger common areas; conference rooms; on-site cafe as well as US Customs office.

ComReal Is In The Zone

We’ve moved! Please make note of our slightly new address within the Miami Free Zone. Our new address is 2315 NW 107th Avenue, Suite #1M02, Mailbox 126, Doral, Florida, 33172. Phone number for the Miami Industrial Team is 786-433-2380 and our website is at www.MiamiIndustrialTeam.com. Feel free to stop by for a tour and a coffee. Our treat!

Missed Our Last Industrial Market Report?

If you would like to read last quarter’s report, please view online at: ComReal’s Miami Industrial Real Estate Report for the 3rd Quarter of 2016

ComReal is in the Zone…the Miami Free Zone that is.

ComReal is pleased to announce that it will assist the Miami Free Zone with its leasing efforts. The Miami Free Zone consists of 850,000 sq. ft. of office, showroom and warehouse spaces. The property is located at 2315 NW 107th Avenue in Doral, Florida. In addition, the Miami Free Zone is within Foreign Trade Zone (FTZ) #32 which offers tenants the ability to move products from countries more easily. For more information, please visit www.MiamiFreeZone.com.

“The Miami Free Zone is the only building of it’s kind in the United States. It is more than just a property, it is truly a community of different businesses working together” states Patricia Quintana, CCIM, Leasing Director. Ms. Quintana will lead the leasing assignment for ComReal and the Miami Free Zone. “We enjoy watching businesses from all over the world trade within their offices or in the main hall over a cafecito”.

Office and showroom spaces range from 800 to 4,000 sq. ft. Warehouse spaces are from 4,000 sq. ft. and up. The Miami Free Zone offers one of the most secure locations in all of Miami to do business making this safe for both employees and merchandise. There are several security guards present at all times. Other features of the property include abundant, free parking; larger common areas; conference rooms; on-site cafe as well as US Customs office.

To better serve the Miami Free Zone and it’s visitors, ComReal has relocated its office within the Miami Free Zone to Suite #1M02. Please note that ComReal’s new full address is 2315 NW 107th Avenue, Suite #1M02, Mailbox #126, Doral, Florida 33172. Main office phone number is 786-433-2380. For more info, please visit us at www.MiamiIndustrialTeam.com.

On May 19th, World Trade Week commenced with a forum on “Breaking Down Barriers to International Trade”. The venue was located at the Miami Free Zone; the foreign trade zone made for the perfect location to discuss global issues. The forum was hosted by Florida Governor Rick Scott. The panel included Lt. Governor Jennifer Carroll, Manny Mencia of Enterprise Florida and Bill Johnson of the Port of Miami. This was one of the better events that our team has attended recently. The forum consisted of eight speakers that addressed the panel with a testimony on their respective industry. Topics included logistics, distribution, shipping, importing and exporting, manufacturing, etc. Each presenter included trade barriers, industry challenges, recommendations and, most importantly, action steps. Both the panelists and the audience received a crash course in each industry. Some of the sponsors for the World Trade Week included Enterprise Florida, Miami Free Zone, Port of Miami, Seaboard Marine, World Trade Center Miami, Miami-Dade County, Sandler Travis & Rosenberg, CAMACOL, and more.

Some of the presentations that were made are listed below:

• Christine Boldt of the association of Floral Importers of Florida (AFIF) on duty treatment and expanded USDA hours.
• Bruce Brecheisen of Seaboard Marine on seaport modernization and logistics, distribution expansion.
• Jay Brickman of Crowley Maritime on FDA perishables process and cold treatment, fumigation procedures.

Lt. Governor Carroll was most impressive how she listened to each testimony and focused on action items to assist each industry. All businessmen were encouraged to bring up other concerns with state of Florida representatives. A definite take away from the event is that now is the time for Floridians to take action against government barriers and taxes that are destructive to business growth and job creation. For more information on Florida Governor Rick Scott’s “Florida: open for business” campaign visit www.rickscottforflorida.com

To view the list of other upcoming events for World Trade Week in Miami, be sure to visit www.worldtrade.org

This is exactly the type of event and topic that the ComReal Miami industrial team participates with on a regular basis. Just a couple days afterward, we reached a successful agreement with one of our clients and the landlord of 100,000 sq. ft. warehouse space in Miami-Dade County, Florida. Our client is in the online sales business from the state of New York. They will relocate over twenty new workers to South Florida. After the deal is formally finalized, this will be a great case study as a proof of concept of Florida’s mission: “Let’s get to work!”

The Airport West and Medley industrial submarkets in Miami-Dade County continue to be the most vibrant in the nation. In this first quarter of 2011, there has been well over 1,000,000 square feet of warehouse space leased in these submarkets alone. This is the second, consecutive quarter of such activity. In these two quarters combined, ComReal has tracked over twenty five deals over 25,000 sq. ft.  Below is a list for the 4Q 2010 and 1Q 2011 of the new tenants in Airport West Dade and Medley:

Tenant Name                         Total Size (Sq. Ft.)
Global Furniture                     180,000
Aeropost International           176,000
Exel                                          137,600
Betty Dain Creations               130,000
Modus Link                               114,000
Deal Tire                                    112,000
Great China Empire                 91,000
CIF Group                                  85,000
Manray Express                         70,000
Martiner                                     65,000
AMCAR                                      59,600
Concept Elevator                     57,000
ACE Hardware                          57,000
Wal-Mart                                    56,800
Freight Logistics                        50,000
Allied Caribbean                      45,700
Yusen Air & Sea                         42,000
Seaboard Marine                      36,800
ZTI Tires                                      36,000
Extreme Aviation                     36,000
Nippon Express USA                 35,000
Hydrofarm                                35,000
Kintetsu                                     30,000
Quick Shipping                         28,000
Retailer Forever 21                   25,600
Orion International                  25,000
Welch Allyn                               25,000

The overall vacancy for Miami-Dade County has fallen to 8.5%. The past six months have been extremely active. If you compare the first quarter of 2009, tenants were simply not leasing any space. The largest lease transaction was only 20,000 sq. ft. and there were only three transactions over 10,000 sq. ft. By comparison, in this first quarter of 2011, there have been over forty transactions over 10,000 sq. ft.
Below are several warehouses that were sold in Airport West Dade this quarter of 2011. Notice that K+N, Star Computer and American Med were the only users that purchased; the others are institutional investment firms.

Name of Warehouse             Buyer                        Address                     Size (Sq. Ft.)  Price                 PSF
•    Airport Int’l. Ctr.              TA Assoc Realty        6100 NW 74 AV         179,000          $10,350,000    $57
•    Transal Park                       Seagis                      8305 NW 27 ST         113,000           $8,750,000      $77
•    Kintetsu USA                     DCT                           8551 NW 30 TR         100,000          $7,500,000      $77
•    Miami Int’l. Bus. Park       Star Computer         3600 NW 114 AV        51,000             $6,800,000     $133
•    Miami Int’l. Bus. Park       AMB                           11380 NW 34 ST        85,000            $5,200,000      $61
•    Medley Ind. Park             Kuehne + Nagel       12800 NW 107 CT      69,000            $4,700,000      $67

•    Fingerlakes                       American Med        2400 NW 95 AV         36,000            $3,400,000       $92

If you are interested in leasing or purchasing warehouse space within the next year, we suggest that you start looking today. Become educated on the market conditions now so that you will understand where the best opportunities are. Judging by these recent trends and facts, we may expect lease rate to increase and available warehouse spaces to diminish. There is very little construction of industrial buildings in Miami-Dade County. The best opportunity may be to acquire vacant, industrial land and build to suit construction. Land in Airport West Dade and Medley has fallen from its peak of $1,000,000 per acre ($25 psf) to as little as $400,000 per acre ($10 psf). Miami-Dade County is surrounded mostly by water and swampland. If you are considering buying industrial land, then do so this year!

If you are interested, visit here for the << Miami Industrial Market Report for Year End 2010 >>

Medley Distribution Center Leased to Allied Caribbean

Allied Caribbean, a distribution company based in Beacon Industrial Park in Doral, will now be relocating to a new 45,700 sq. ft. warehouse space at 11000 Northwest 92nd Terrace in Medley. Allied was represented by ComReal Miami’s Warehouse Team during the site selection and lease negotiation processes. To read more about the story, visit << Medley Distribution Center >>

ComReal is in the Zone

ComReal is in the Miami Free Zone that is. The industrial warehouse team could not be happier with their relocation into their new office space within the Miami Free Zone in Doral. ComReal Miami’s new address is 2335 NW 107th Avenue, Suite #2M02, Box 126, Doral, Florida, 33172, USA. In May, the ComReal team will be sponsoring a free workshop on foreign trade zones. Please let us know if you are interested in attending. Why would a commercial real estate company move into a foreign trade zone? Why should you consider moving your business there too? Read the reasons why at << ComReal is in the Miami Free Zone >>

Miami-Dade County Business Development Mission to Panama

In June, Edward Redlich will visit Panama along with a twenty other delegates from Miami-Dade County Economic Development and International Trade, Enterprise Florida and Panamanian American Chamber of Commerce. Please send Ed your ideas and opinions about doing business with Panama before he departs. For more details, visit << Business Development from Miami to Panama >>

The ComReal Companies, a full-service commercial real estate brokerage firm serving domestic and international clients in South Florida announced today the relocation of its Industrial Division of ComReal Miami to the Miami Free Zone (MFZ) in the City of Doral.

The name ComReal is synonymous with industrial real estate in the Doral and Miami Airport West Dade areas. They were visionaries in the original development of the district over thirty years ago, and then continued to provide industry-leading broker services during the area’s rapid growth period. Today, ComReal’s proven processes utilize their experience, market knowledge and state of the art resources to provide superior performance in understanding and delivering their client’s objectives.

For several years, ComReal Miami has been working with the MFZ showcasing and leasing space in the MFZ because of the flexibility and ability to accommodate individual needs. By moving their own offices into the MFZ, ComReal principals are investing in their commitment to changing business practices. Another factor that drove ComReal to make the move into the MFZ is the expected growth of its client’s international business and opportunities.

The premium services provided by the MFZ and the convenience of its location are key drivers attracting increasingly more international trade companies to Miami. The free zone is an ideal location for international businesses seeking economically affordable showrooms, offices, and warehouse spaces, while enjoying the benefit of less tense custom and taxation jurisdictions.

“The Miami Free Zone gives us the opportunity to be even closer to other businesses involved with international trade, such as manufacturers, logistics, importers and exporters, freight forwarders, and their respective service providers,” said Edward Redlich, SIOR, CCIM, Executive Vice-President and Director  of the Miami company’s Industrial Division.

ComReal offers its clients a comprehensive range of services and stands ready to serve the globalization of its corporate clients in the international marketplace. The MFZ is known as a premier location for international trade, which offers unsurpassed exposure to thousands of foreign and local business owners who visit the zone every year.

“By being within an active foreign trade zone facility, ComReal and its client’s are in a prime position to explore new markets efficiently, while saving money”. said Arcelio Gerardo, General Manager of FTZ World Services, LLC., the operator of the Miami Free Zone. The Miami Free Zone ( www.MiamiFreeZone.com ) is an 850,00 sq. ft. facility consisting of both office and warehouse spaces.

For over thirty years The ComReal Companies have played an integral role in the commercial real estate development of South Florida. If you would like to discuss employment opportunities, available office and warehouse spaces, trends in the marketplace and/or just the real estate market in general, please contact Ed Redlich, Vice-President at 786-433-2379.