The average vacancy rate decreased to 3.8% and the average lease rates have increased to $11.76 per sq. ft. Landlords continue to drive rates up while giving tenants fewer concessions. Over 5MM sq. ft. is under construction in Miami’s industrial real estate market, however the net absorption for this quarter was only about 200,000 sq. ft. The largest sales transaction this quarter was TA Realty’s acquisition of an industrial portfolio owned by Cofe Properties based here in Miami. Another smaller, but very significant deal was Badia Spices’ purchase of a class B+ warehouse building for $175 per sq. ft. It is these kinds of prices that are turning property owners into sellers.

Our team has been extremely active the past several months as you will read below. Please feel free to contact us if we can assist you with your commercial real estate needs. Thank you very much.

If you would like to read last quarter’s report, please view: ComReal’s Miami Industrial Real Estate Report for the 2nd Quarter 2018. >>>

Wal-Mart leases 25,000 SF in Miami Cargo Park at 3400 NW 74th Avenue. We thank Edison for his efforts on making this deal happen!

Miami Warehouses Sold in 3rd Quarter 2018 (partial list):

* Deals closed by the ComReal Miami Industrial Team

Miami Warehouses Leased in 3rd Quarter 2018 (partial list):

* Deals closed by the ComReal Miami Industrial Team

Sold! Realterm Logistics Closes on $10M Site then Re-Lists the Property for Lease with ComReal:

Chris Spear, CCIM led the way to close a $10,000,000 transaction with Realterm Logistics. The site is located at 7500 Northwest 82 Place in Medley and measures about 10.8 acres with a 28,000 sq. ft. warehouse building. It is challenging to find properties in Miami consisting of larger industrial lots and smaller buildings. The sale reflected a land value of about $20.00 per sq. ft. Upon closing, Realterm re-listed the property for lease. Be sure to watch the Aerial Drone Video Tour. >>>

Congrats to Mort Fetterolf for representing ArjoHuntleigh in their lease of a 32,459 SF warehouse space at Countyline Corporate Park!

The Airport Palmetto Corridor Report!

Pat McBride has led the ComReal team by specializing in The Airport Palmetto Corridor which is comprised of 17,500,000 square feet of industrial buildings. According to Pat’s research, the area is very dynamic. Boasting average sales asking prices of $135 per sq. ft., rental rates above $10.00 sq. ft., and a 96.9% occupancy rate, the Airport Palmetto Corridor is one of the top sub-markets in the nation. Please click here for The Airport Palmetto Corridor Report. >>>

Companies Relocating to Florida!

A trend that Florida has been experiencing the past several years is that businesses from New York and Illinois are relocating to Florida. Quality of life, the weather and lifestyle choices are some of the main reasons. “Pay them in sunshine” as the old Florida saying goes. However, many businesses are making the economic decision to move to Florida because their states have higher taxes, more government regulations, crime and corruption. Read the full story at Companies Relocating to Florida. >>>

On behalf of her client, Hellmann Worldwide Logistics, Patricia Quintana CCIM subleased a portion of their office space at their USA headquarters at 10450 Doral Boulevard.

Welcome Pat McBride to the ComReal Industrial Team!

Pat McBride, Commercial Advisor, specializes in the sale and leasing of warehouse space in Miami-Dade County. His services include landlord representation, buyer/tenant representation, consultations, and site selections. Pat graduated from the University of Miami with a Bachelor’s degree in Accounting in 2013 and also earned his JD from the University of Miami School of Law in 2016. Prior to joining ComReal, Pat practiced law at a well-known construction law firm in Miami where he represented various notable architects and engineers in South Florida. He also gained invaluable experience representing developers and owners. While Pat enjoyed his time in the legal profession, he is following his true passion in Commercial Real Estate.

Welcome to Miami! ComReal welcomes our friends with Henry Edwards Equipment Services to Medley. They leased 8k SF on over two acres. Hard to find small buildings with extra land.

Our Team supports Rick Scott for U.S. Senate and Ron DeSantis for Florida Governor!

Florida Governor Scott visit ComReal’s office

We support Rick Scott for U.S. Senate and Ron DeSantis for Florida Governor because we believe in free & fair trade, low taxes, low government regulations and low crime.

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.

The question that some of us are now asking in the industry is, “Will 2018 be the year that we break the $10.00 per sq. ft. barrier for the average lease rate?” We are close enough that this may happen, although it will be grudgingly so. With so much new space being delivered on-the-market, landlords will likely not be able to drastically increase their lease rates due to fierce competition and knowledgeable tenant-rep brokers. A real problem that few professionals discuss is the lack of customer service delivered by landlords / owners. Unsatisfactory property maintenance and management, as well as very challenging lease terms imposed by landlords, are becoming the norm in today’s “owner’s market”. Welcome to Miami. Tenants are customers too and win-win lease transactions between both parties will be more respected when the market starts turning the other way, and it will one day.

At the U.S. national level, the average vacancy rate has also decreased slightly to 4.9% and the average lease rate increased to $6.46 per sq. ft. Our colleagues from around the country report that each of their respective markets were very dynamic in 2017. We look forward to entering the second year, of a new era, of lower taxation and less federal regulations. Now we just need to make Miami-Dade County great again.

The ComReal Industrial Team commences this year with the largest, available warehouse measuring 234,739 sq. ft. now listed for sale on-the-market (see below). In addition, we have a total of seven (7) buildings listed for sale in Miami over 25,000 sq. ft., which is more than any other brokerage firm in Miami. Please feel free to contact us anytime to discuss your commercial real estate needs in 2018 and beyond.

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 2017. >>>

Featured Property: The 234,739 sq. ft. Miami Freezer/Cooler Building for Sale!

At an impressive size of 234,739 sq. ft., this is the largest warehouse in Miami currently listed on-the-market for sale. The building’s freezers and coolers make it ideal for an owner-user in the perishables industry, however it could also be great for dry distribution, manufacturing, etc. Investors may also be attracted to this multi-bay warehouse and the seller may consider leasing-back a portion. The property is halfway between both PortMiami and Port Everglades just off I-95. For details on this ComReal exclusive listing, please visit The Miami Freezer Warehouse Building for Sale. >>>

Our customers are “cool!” TransInternational Cargo expands it’s flower distribution operation to 26k SF cooler warehouse space closer to Miami Int’l. Airport.

Miami Warehouses Sold in 4th Quarter 2017 (partial list):

Miami Warehouses Leased in 4th Quarter 2017 (partial list):

* Deals closed by the ComReal Miami Industrial Team

Two more happy customers! Pan Ocean Freight swiftly back-filled an 80k SF warehouse space at Miami International Logistics Center in Hialeah owned by Lincoln Property Group immediately after the prior tenant terminated it’s lease.

News Release: 87,531 sq. ft. Warehouse at Turnpike Logistics Center 100% Leased!

ComReal completely leased up the 87,531 sq. ft. warehouse building known as The Turnpike Logistics Center located in Doral to a single tenant in the international skin care production and distribution industry. The landlord is Seagis Property Group. The value of this lease transaction was about $3.5M. For more information on the story, please visit Florida Turnpike Logistics Center Warehouse in Doral. >>>

Congratulations to Patricia Quintana, CCIM who leased 12k SF of office space on Doral Boulevard to US Health Exchange

Office Space on Doral Boulevard Leased

Service Provider of the Quarter: Sirius Business Advisors

Sirius Business Advisors is the only business brokerage firm in Miami that we are comfortable in recommending to our clients. If you are looking to buy or sell a business opportunity then Sirius has the solution for mergers, acquisitions, add-on opportunities, etc. Please consider letting ComReal handle your commercial real estate needs along with Sirius for your business needs. Contact our friends Michael Weihl and Richard Leal with Sirius Business Brokers at 844-747-4875​ and/or via their website at www.siriusbusinessadvisors.com. >>>

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!

The largest sale of the quarter was the disposition of South Florida Logistics Center by Flagler Development to J.P. Morgan Asset Management. The property consists of six buildings totaling 867,343 sq. ft. The sale price was $209,015,000 or about $240 per sq. ft. The largest lease transaction was by Amazon.com who leased a new 860,000 sq. ft. warehouse space in Opa Locka.

Overall, the industrial real estate market will finish strong this year. However, residential Realtors are already reporting a slow down which could be another signal that the commercial real estate market may follow. In addition, a looming 2017 recession and the presidential election continue to cause anxieties with the decision making process. Will the country choose more governmentism or the free-market principles of Americanism?

In case you missed our prior report, click this link for ComReal’s Miami Industrial Real Estate Report for the 2nd Quarter of 2016. >>>

“Our team would like to hear from you. There is always room for improvement, and we would like to make this report better for you. Follow the link below to complete a short survey to help us serve you better. It should only take 2 minutes. Thank You!” Click here to TAKE SURVEY >>>

Miami Warehouses Sold in 3rd Quarter 2016 (partial list):

Top New Miami Warehouse Listings of this Quarter:

Contact us anytime via email or phone at 786-433-2380 for other industrial properties available.Thank you!

Featured Property: The Redland Warehouse

For Sale! 55,600 sq. ft. warehouse on over 14 acres located in Redland, Florida. This property’s bonus features include extra land, both industrial and agricultural zoning, refrigerated warehouse space and CSX Railroad. Be sure to watch our aerial drone video on the property.

Vote Trump-Pence for 2016 and “Make America Great Again”!!!

2016 commences with strong activity in Miami’s industrial real estate market. The average lease rate has increased to $9.24 per sq. ft. and the average vacancy rate has decreased to 4.5%. The largest lease transaction of the 1st quarter was Amazon.com’s deal for the entire Building #5 of 180,000 sq. ft. at South Florida Logistics Center. You may recall that last year, they also leased a 336,000 sq. ft. warehouse in Beacon Lakes. In addition, there are several other large users in the market looking for more warehouse space.

There are several hot topics for 2016 which include the grand opening of the Panama Canal expansion in June; medical marijuana (MMJ) on the Florida ballot in November; and the opening of more trade with Cuba. Each of these should have a positive effect on the Miami warehouse market. Another positive trend is that Miami has been growing from being viewed as primarily a Latin American city to now a truly global city. Just in the past few days, our team has met with customers from Hong Kong, Malaysia, France and Hungary who each look to expand their warehouse operations here in Miami.

On the negative side, the 6% Florida state sales tax will remain on commercial rent. No other state in the USA has such a tax. The Governor and the House championed a phasing out of the tax commencing in 2017, however the Senate voted to keep the revenue while increasing expenditures. We would also be remiss if we did not mention that the weak economy and the upcoming presidential election are absolutely concerns for some decision makers.

If you would ever like to chat about Miami’s industrial real estate market, please feel free to contact our team anytime. We are easy to work with and all matters may be kept completely confidential.

In case you missed our prior report, click this link for ComReal’s Miami Industrial Real Estate Year End 2015 Report. >>>

Miami Warehouses Leased in 1st Quarter 2016 (partial list):

Miami Warehouses Sold in 1st Quarter 2016 (partial list):

Featured Property!!!

New listing! ComReal just listed this class A 64,000 sq. ft. warehouse in the Homestead Park of Commerce for sale or lease. Homestead is centrally-located in South Florida and has a “live, work, play” lifestyle. For a complete package, please visit The Homestead Warehouse. >>>

Seneca Lakes Warehouse Building Leased!

Baltec Marine leased 29,981 sq. ft. warehouse space at Seneca Lakes Business Park. For more details on the story, please read: Baltec Marine Leases Warehouse in South Florida. >>>

Meet the ComReal Miami Industrial Team: