The Miami industrial market ends Q3 2019 with a 4.2% vacancy rate and average lease rate over $12.32 per sq. ft. (gross). The strong activity continues as more companies expand and new companies move to the area. There was 3.1 million sq. ft. of positive absorption over the past 12 months; averaging about 1M sq. ft. per quarter ; a sign that our market is relatively healthy. New construction keeps pushing along at record levels; there was over 4 million sq. ft. of new construction completed over the past 12 months, which is the highest level in a decade. In addition, at the end of the quarter, there were 4,105,432 sq. ft. now under construction. The most notable area of supply is the emergence of North Miami Area (Hialeah Gardens, Opa Locka / Gratigny), the metro’s second largest sub-market. There is currently more than 1.5 million sq. ft. under development in this sub-market, triple that of Miami Airport West, which is the metro’s largest sub-market. North Miami Area is home to projects such as Amazon’s recent endeavor, which just finished an 836,000-SF fulfillment center next to the Opa Locka Executive Airport.

Fueling all this growth is the growing trend in population. Miami-Dade county’s labor market has grown by 12% over the last five years, and the current unemployment rate is 3%, which is over a percent less than a year ago. The labor market is forecast to grow by 3% over the next five years. However, Miami’s labor force is heavily dependent on international arrivals and could be greatly affected by a change in immigration policy and or changes in economic conditions in Latin America.

Vacancy rates for Industrial Space in Miami have fallen and stayed around 4%, and they are expected to stay below the national average. Supply has remained strong. There has been an absorption of 2,804,575 sq. ft over the past year, with most transactions occurring near the airport, along State Road 826, Hialeah, just south of the Opa Locka Executive Airport. Miami and Fort Lauderdale have the second highest asking rents on the U.S. east coast, just behind New York City. Miami’s rent prices stay high due to the consistent demand and natural land restraints. The average rent for warehouse and distribution space in the Miami area is over $12/sq. ft.

Sales of industrial building continue to be strong during the quarter. Not surprising, Blackstone has been one of the most active buyers of industrial space in this market. Buying portfolios from TA Realty and Global Logistics Properties (GLP). Excluding portfolio sales, there were 3,579,448 Sq. Ft. sold in Q3 2019 with a sales volume of $454,791,600. Putting the average sale price at $127/Sq.Ft. Definitely one of the stronger quarters in record.As the leader in terms of economy in the state of Florida, Miami has experienced favorable economic and demo-graphic conditions over the last five years, and the forecast calls for continued growth, which could be accelerated if the region attracts more high-paying jobs in more diverse and larger employers to improve Miami’s income base and support commercial real estate growth.

ComReal closes three deals totaling 144,000 sq. ft. of warehouse space! 

The ComReal Miami-Doral Industrial Team led by Edward Redlich, SIOR, CCIM, and Patrick McBride, Esq. has successfully assisted Omni Transloading and Logistics (Omni) open warehouse spaces totaling 144,000 sq. ft. at Flagler Station in Medley and International Corporate Park in Doral. These three multimillion-dollar deals are all located in Class-A warehouse space convenient to transportation and logistics access points such as the Florida East Coast Railroad (FECR) and Miami International Airport. ComReal team members Edward Redlich and Patrick McBride overcame significant obstacles in finding the warehouse space for the client, Omni. ComReal and Omni have a close working relationship that spans over 10 years!

Read the full story at www.MiamiIndustrialTeam.com.

What are “last mile” warehouses?

The explosive growth of e-commerce has resulted in a race to reach consumers. Some retailers are offering one-day, same-day, even one-hour delivery in a bid to stay ahead of the pack. How retailers fulfill this promise is through what’s known as “last mile” warehouse facilities. The term “last mile” is used in supply chain management and transportation planning to describe the movement of people and goods from a transportation hub to a final destination, such as a person’s home. Therefore, when we talk about “last mile” warehouses, we’re referring to the warehouse located closest a final destination – even though most are not technically within one mile of a destination.

Read full details at www.MiamiIndustrialTeam.com.

There is over 4,000,000 sq. ft. of industrial buildings under construction. In addition, several more warehouse developments are in the pipeline. Astute buyers are also acquiring industrial land since the inventory is dwindling and prices increasing. The ComReal Team closed two land deals in the month of June totaling $7,000,000.

There’s also a national trend that we’ve been experiencing for several years, but now it is even more noticeable. States with higher taxes, more government regulations and democratic socialism (such as New York, Illinois and California) are losing their business to business-friendly states like Florida. The income tax rate in Florida is 0.0% whereas these other states are as high as from 5% to 13%. In addition, property taxes in Florida are not as exorbitant, which is even more relative now since the IRS reductions have been reduced. Expect to see more industries consider Florida for their new operations!

If you would like to read last quarter’s report, please view: ComReal’s Miami Industrial Real Estate Report for the 1st Quarter 2018. >>>

Miami Warehouses Sold in 2nd Quarter 2018 (partial list):

Miami Warehouses Leased in 2nd Quarter 2018 (partial list):

Featured Property: 14.6 Commercial Acres in Florida City for Sale!

ComReal is honored to exclusively represent the City of Florida City in their disposition of this 14.6 acre commercial site located on Krome Avenue in Florida City. For details on this new listing, please check out: Florida City Commercial Land for Sale. >>>

Sold! 8 Industrial Acres on Palmetto Expressway!

Sold! 8 industrial acres sold for $5,500,000. This heavy industrial site is located on the Palmetto Expressway. For more details on this transaction, read on at Palmetto Industrial Land Sold. >>>

Sold! 10 Industrial / Agricultural Acres in Redland, Florida!

ComReal also specializes with agricultural properties. Last month, our team sold 10 acres in Redland, Florida where a few of us have lived. Read more about our story at 10 Acres Sold in Redland, Florida. >>>

ComReal Happenings: Ed Redlich and Edison Vasquez on FIU Real Estate Panel

Florida International University (FIU) hosted its Spring 2018 Real Estate Speaker Series on May 15th, 2018. It focused on the state of the Industrial Real Estate in Miami and career advice for starting in commercial real estate. Ed Redlich and Edison Vasquez are both FIU alumni and participated on the panel. Read more about the FIU Real Estate Panel on Miami Industrial Real Estate. >>>

ComReal Miami – Doral’s New Location!

Please visit ComReal Miami – Doral’s new office on the ground floor of The Royal Palm Office Park at 8200 NW 41st Street in Doral, FL. We’re located just off of the Palmetto Expressway near The Doral Country Club. Please update your records with our new address: 8200 NW 41st Street, Suite #155, Doral, FL 33166.

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):

Miami Warehouses Leased in 2nd Quarter 2017 (partial list):

“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.

Summary:

The new year starts off with a slightly lower average lease rate of $9.54 per sq. ft. and a higher vacancy rate to 3.9%. The positive absorption was a healthy 602,988 sq. ft. The most significant disposition so far this year was TA Associates’ sale of seven warehouses totaling 550,000 sq. ft. to Brookfield Asset Management for $60M. The largest lease transaction was a renewal by Bel USA of 342,750 sq. ft. in Medley Logistics Park worth an estimated value of $30M.

While most of the national developers construct larger warehouse spaces in Miami, we are happy to report that Flightway has announced that they will be delivering a new 200,000 sq. ft. warehouse divisible into 14,000 sq. ft. bays by February 2018. The project will be located at 10211 NW 62 Street. There is a decent market demand for 5,000 to 10,000 sq. ft warehouse spaces.

As you may know, Florida is the only state that charges a sales tax on commercial leases. Florida Governor Rick Scott is advocating a reduction to the Business Rent Tax from 6% to 4.5%. Please follow and support House Bill 463.

If you would like to read last quarter’s report, please view online at: ComReal’s Miami Industrial Real Estate Report for the 2016 Year End. >>>

Featured Property: Miami International Logistics Center

ComReal’s featured listing this quarter is The Miami International Logistics Center. The 506,000 sq. ft. warehouse distribution center sits on twenty acres. It is ideally located near both PortMiami and Miami International Airport. Warehouse spaces are available to rent from 3,000 to 80,000 sq. ft. and up! The ownership may consider short term leases. Contact our team anytime for more information and/or a tour.

“Congratulations to our friends at Karlville! We helped them lease their 23k sf warehouse in Hialeah to Universal Freight.” – Ed, Chris and Edison

Miami Warehouses Sold in 1st Quarter 2017 (partial list):

Miami Warehouses Leased in 1st Quarter 2017 (partial list):

* Deals closed by the ComReal Miami Industrial Team.

“Welcome to the Redland! Hialeah Tomatoes expands to their new 55,000 sq. ft. refrigerated / packing warehouse at 21150 SW 167 Avenue in the Redland. We wish them great success!” – Ed, Chris & Edison

“Congratulations! CH Robinson leased 48,952 sq. ft. at 2000 NW 62 Avenue owned by our friends at Aeroterm. The warehouse was refrigerated and on Miami International Airport property.” – Ed Redlich and Chris Spear, ComReal

News Release: Southcoast Simulation lands in Miami Warehouse!

South Florida Logistics Center next to Miami Int’l. Airport

Southcoast Simulation, Inc. has recently moved into its brand new 17,000 sq. ft. class A warehouse space at South Florida Logistics Center. Southcoast is based in Montreal, Canada and specializes in Visual System Technical Support for flight simulators. The landlord is Flagler Development who constructed this fourth building at South Florida Logistics Center which is adjacent to Miami International Airport. “This is the fourth client that we have represented in South Florida Logistics Center. What is interesting about these lease transactions are that three of them were new to Miami; and all four are based in other countries; two from Canada, one from France and one from Colombia.” states Ed Redlich, SIOR, CCIM, Vice-President with ComReal Miami’s Industrial Team.

“On behalf of the Miami Free Zone, we recently enjoyed working with the following tenants: Global Phone Solutions, Sure Destiny, Tours Worldwide, Coastal Int’l. Logistics and ComReal Doral!” – Patricia Quintana

ComReal welcomes Mort Fetterolf to the Team!

For over 15 years, Mort Fetterolf has represented the interests of corporate real estate users and owners in an aggressive and strategic manner. His extensive transaction experience covers a wide range of disciplines including sales, leasing, portfolio management and development.

Mort’s comprehensive approach focuses solely on his client’s goals. After thorough analysis of his clients objectives and space utilization, Mort customizes strategies based on the reduction and control of occupancy costs while maintaining flexibility. Through sophisticated financial and legal analysis, Mort delivers results to and protects his clients on both a local and national basis.

Prior to joining ComReal, Mort was Vice President of Colliers International South Florida where he completed in excess of $250 million in transactions on behalf a wide range of national and international clients. Mort also served as the Director of Leasing for Flagler Development Company where he oversaw the leasing and development of 5.5 million square feet of industrial and office product.

Mort attended the University of Delaware where he received a BA in Economics and was a member of the Ice Hockey Team.

Sample of clients: Samsung, Smuckers, Agility Logistics, Ingram Micro, CBS, Synnex, HydroFarm and HIK Vision.

“Congratulations to our long-time friend, Pete Austen, in the successful renewal of Sterling Transportation in his 28,500 sq. ft. warehouse building in Doral.” – Steve, Ed and Edison

Service Provider of the Quarter:

For all of your insurance needs for commercial real estate properties and businesses, we highly recommend our friends at Southeast Insurance. Please contact Mr. Fernando Silva, Managing Director, at Southeast Insurance. His phone number is 646-361-4010 and/or visit their website at www.SoutheastInsure.com

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 4th Quarter of 2016

Mortgage Calculator and On-Line Conversion Tool

If you would ever like a quick, easy-to-use mortgage calculator and conversion tool then visit the “Info” page on our website at www.MiamiIndustrialTeam.com. Be sure to bookmark to your favorites!

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