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.

If you own a business and are looking for a warehouse location that is convenient for large-volume international import and export, you may be considering moving your business into a warehouse in the South Florida area. Strategically, Miami is situated in a prime geographic location for industries that do business throughout the Americas. Positioned as the “Gateway to the Americas,” Miami and the South Florida area boast several ports-of-call, and the region is home to industries and businesses ranging from industrial manufacturing, to international import and export distribution and logistics, all of which require a solid foundation of infrastructure resources. One of the best resources that the area provides for businesses considering a warehouse for import/export, manufacturing, and distribution is the Foreign-Trade Zone.

Benefits to Operating in a Foreign-Trade Zone

Foreign-Trade Zones (FTZs) in the United States are secure domestic areas that are technically under the supervision of U.S. Customs and Border Protection (CBP), however, businesses that operate within the FTZ are considered outside of the U.S. Customs territory and exempt from paying U.S. entry tariffs, taxes, or duties until merchandise or products are moved outside of the zone and enter the domestic U.S. market. If product that is imported into the zone is being prepared for export outside of the U.S., no U.S. duties or tariffs are owed prior to export. These areas are most profitable for operations that require the import of foreign dutiable materials that will be manufactured for re-export.

For industries that rely heavily on the import and export of goods for direct consumption in local markets, or for manufacturing into final products, moving into a warehouse located in a Miami FTZ would also be extremely beneficial. In addition to the lack of duties on goods that are imported only to be housed or manufactured prior to re-export to other countries, companies will also find the elimination of duties typically tagged onto waste, scrap, and rejected or defective parts. Businesses can choose whether they want to pay tariffs on goods and parts as they enter the U.S. or on the finished product as it leaves the zone if the final goods are for consumption in the U.S. market. Certain businesses may even see a reduction in merchandise fees because FTZ users may file a single customs entry per week, consolidating various shipments.

Foreign-Trade Zones are technically outside the commerce and customs territories of the U.S.; however, industries are not allowed to store lawfully prohibited goods or merchandise within the zone. Also, placing merchandise subject to a quota into the zone does not circumvent the quota, but businesses may store the goods in the FTZ warehouse until a quota opens allowing the goods to enter the market. Though there is no onsite presence of CBP, all FTZs are subject to spot checks and must obey the laws of the U.S. with regards to labor and immigration, both at the local and federal levels.

Miami Foreign-Trade Zones

Miami is home to three Foreign-Trade Zones.

PortMiami FTZ: Located at the Port of Miami, this FTZ is ideal for businesses looking for a domestic U.S. warehouse and expect goods and materials to arrive frequently through the port located in Miami. Visit http://www.miamidade.gov/portmiami/foreign-trade-zone-281.asp

Homestead Park of Commerce FTZ: This FTZ is home to the Homestead-Miami Speedway, and is located further south of PortMiami between Miami and the Florida Keys. The FTZ license is via the Vision Council. On a side note, Edward Redlich with ComReal is past-president of the VIsion Council Foreign Trade Zone.

Miami Free Zone: This FTZ, conveniently located in the Doral area close to Miami International Airport and Air Cargo, is a leading regional wholesale market and the most experienced FTZ in the South Florida area. The Miami Free Zone is also home to a premium showroom and international business center in addition to office and warehouse space. Visit www.MiamiFreeZone.com

“Did you know? ComReal is the only commercial real estate company officed in a foreign trade zone in the USA. Read their story at ComReal is in the Zone!“

Alternate Site Framework

Alternate Site Framework (ASF) gives most warehouses in Miami-Dade County the ability to become designated as a FTZ. This is an “alternative” framework to manage FTZ sites, and gives grantees of participating zones more flexibility to simplify the process and procedures to make minor boundary modifications to re-designate locations where companies can use the FTZ. This process is more focused and predictable than traditional FTZ site framework.

FTZs provide flexible control over domestic and foreign inventory, duty elimination, and high security standards under CBP checks. Miami is a leading regional epicenter for international business, trade, and logistics, making it a perfect location for industries interested in manufacturing, or any type of high-volume import and export to find a warehouse home in one of the FTZs located in the area.

If you are interested in applying for FTZ status and/or need an operator, we highly recommend a couple of our friends to assist.

References:

About Foreign-Trade Zones and Contact Info. (n.d.). Retrieved July 25, 2017, from https://www.cbp.gov/border-security/ports-entry/cargo-security/cargo-control/foreign-trade-zones/about

(n.d.). Retrieved July 25, 2017, from http://www.foreign-trade-zone.com/link01p.htm

Foreign Trade Zones. (2016, July 10). Retrieved July 25, 2017, from http://www.beaconcouncil.com/meet-miami-dade-county/international-access/air-flight-times-and-flight-patterns

Greater Miami Foreign Trade Zone. (n.d.). Retrieved July 25, 2017, from http://www.miamichamber.com/about/greater-miami-foreign-trade-zone

Miami Free Zone and Foreign Trade Zone at 2305 NW 107 Avenue, Doral, Florida. Visit www.miamifreezone.com

PortMiami Foreign Trade Zone. Visit http://www.miamidade.gov/portmiami/foreign-trade-zone-281.asp

FTZ World Services presents: GET IN THE ZONE. WHAT FOREIGN TRADE ZONES CAN DO FOR YOU!

In celebration of Florida World Trade Month 2013, the Miami Free Zone is hosting a free seminar on Foreign Trade Zones (FTZ). This seminar aims to educate businesses and individuals about the benefits of using a FTZ and their importance in helping grow international trade, increase exports and create jobs in our communities.

The topics will include: 1). History and fundamentals of the FTZ program. 2). ASF program (Alternative Site Framework). 3). Overview of FTZ’s in Florida and the US. 4). How a FTZ can benefit you. 5). Miami’s warehouse market.

Location: Miami Free Zone Conference Center at 2305 NW 107th Ave., Suites 2M08-10. Doral ,FL 33172.

PLEASE RSVP: marketing@miamifreezone.com or call (305) 591-4300 Ext 319

Event Sponsor: ComReal Miami Warehouse Team. Ed Redlich will be delivering a brief presentation on Miami’s industrial real estate market.

Supporting Organizations: Colombian American Chamber of Commerce, Florida Foreign Trade Association and the Greater Miami Chamber of Commerce.

Please join us at a free, educational workshop on Foreign Trade Zones (FTZ’s). Mr. Arcelio Gerardo of FTZ World Services and Mr. Jorge Suarez of the Miami Free Zone will be conducting the workshop.

This workshop is sponsored by the ComReal Miami Warehouse Team. Snacks and drinks will also be provided. Seating is limited, so please RSVP via email soon.

The workshop will be held  at The Miami Free Zone in Conference Room #2M-08. (up the escalator and into the 2nd building). Click here for a << Google Map>>

Who should attend? Anyone in the following industries such as manufacturing, logistics, import/exporting and more! Especially if your product is foods, pharmaceuticals, electronics, computers, cell phones, medical devices, cosmetics, jewelry, alcohol & tobacco, building supplies, aircraft parts and more! Learn how FTZ status can benefit you and your business. Please feel free to contact us anytime for a free, confidential discussion.

This event is sponsored by ComReal Miami, Miami Free Zone, FTZ Worldwide Services, Renatus Group, Exclusive Brand Marketing and Benchmark. To RSVP, please contact us via email or 786-433-2380.

We look forward to seeing you there. Thank you very much.