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.

ComReal is pleased to welcome their client, KTB-USA Import-Export, to Miami, Florida. KTB is a parts supply company based in Hamburg, Germany. ComReal assisted by locating their 10,721 sq. ft. Miami warehouse space at 2021 NW 89th Place in Americas’ Gateway Park in City of Doral. Visit their website at www.KTB-Europe.com. For more information about warehouses in Miami, contact Edward Redlich, SIOR, CCIM or Chris Spear at 786-433-2380.

The Miami industrial real estate market becomes more vibrant while the sales and leasing of other types of real estate properties remain weak. Nearly 1M square feet of Miami warehouse space was absorbed in the 3rd quarter of 2010 decreasing the vacancy for the third consecutive quarter in a row to 9.3%. The average lease rate slightly decreased to $7.02 psf on an industrial gross basis.

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

List of major leases for warehouse spaces in Miami:

352,000 sq. ft. by Bel, Inc. at Lincoln Logistics Park, Medley
201,399 sq. ft. by DHL Global Forwarding at MICC, Doral
182,000 sq. ft. by Global Ventures Intl. in Miami Lakes
175,000 sq. ft. by Carnival Cruise Lines at Centergate, Gratigny
144,000 sq. ft. by Econocaribe Consolidators at Airport in Miami
121,979 sq. ft .by  County Wide of Miami at Flagler Station, Medley
101,600 sq. ft. by Cash & Carry at 5590 NW 163rd Street in Miami
70,825 sq. ft. by Manray Express at AMB Distribution, Hialeah
65,120 sq. ft. by Brightstar at Beacon Lakes, Airport West Dade
65,069 sq. ft. by Martainer at Beacon Lakes, Airport West Dade
60,000 sq. ft. by Amcar Freight at Beacon Lakes, Airport West Dade

Miami Industrial Properties Sales and Leasing Activity cont…

In Miami, ComReal is credited with Aggreko’s lease of 31,000 sq. ft. at 3601 NW 123rd Street in Gratigny and 24,000 sq. ft. by Boston Med Devices at 2315 NW 107th Avenue in the Miami Free Zone in Doral. ComReal procured two of the largest warehouse lease transactions so far this year in Broward County with the lease of 44,000 sq. ft. by the Drug Enforcement Agency in Meridian Business Park in Weston and the lease of 55,000 sq. ft. by MSI at the Atlantic Business Center in Pompano Beach.

There were two major sales in Miami. The 268,000 sq. ft. Turnpike Distribution Center located at 11401 NW 134th Street in Medley. The multi-tenanted, warehouse building sold for $15,200,000 or $56 psf at a 8.5% cap rate. The Seller was RREEF and the new owner is Cabot. Palmetto Distribution Center located at 8001 NW 79th Avenue in Medley comprised of six buildings totaling 880,543 sq. ft. was purchased by AMB after a bidding frenzy by two dozen prospective purchasers.  The final price was an impressive $66,500,000 or $75 psf. The cap rate was 5.9%. The multi-tenanted properties were 95% occupied.

Edward Redlich of ComReal, was interviewed by Globe Street. “This sale makes a statement. Here’s an institution acquiring a property and they are not looking at 2010. They are looking beyond. They paid a premium for this asset. This is good class B functional warehouse space. AMB is making an investment in the future of Miami’s industrial market.”

It is worth mentioning the significant sales in nearby Broward County as well. RREEF purchased four buildings at Weston Business Center for $65,000,000. Duke Realty Corporation paid $20,000,000 for two buildings totaling 113,000 sq. ft. plus some extra land in Pompano Beach.

If you are interested in more details on other closed lease and sale transactions and/or the Miami industrial real estate market in general, please call our team at 786-433-2380.

Commercial Real Estate Events

ComReal takes an active role in learning about the organizations and economic engines that power Miami’s industrial market. We met recently met with Enterprise Florida and also attended their workshop on globalizing websites. Below are some other events that we attended over the past few months.

Recently, our team toured the Port of Miami to get updates on the following projects: Miami Tunnel, FEC railroad and the 50’ deep drudge. Read more about these stories here: <<click here>>

We also toured the cargo and maintenance warehouses at Miami International Airport. It is amazing the amount of air cargo the MIA handles. To view the Miami air cargo statistics: <<click here>>

ComReal Miami’s team attends the Airport West Business Association meets every Monday to discuss annexations in the Miami Airport West Dade area. Learn more about this very important issue at: <<click here>>

“South Florida Flower Carrier Grows Warehouse Space Just-In-Time for Valentine’s Day!!!”

ComReal Miami’s industrial real estate brokers, Stephen H. Smith, SIOR and Edward Redlich, SIOR, CCIM announce the warehouse expansion of their client, Armellini Express Lines, a specialized carrier of floral products (visit www.Armellini.com). Based in South Florida, Armellini is the largest carrier of floral products in the United States. Since 1945, they have specialized in the shipment of floral products in temperature controlled warehousing and transportation.

As some companies in the transportation industry reduce their size in an uncertain economy, Armellini acquires an additional 42,535 sq. ft. of warehouse space in Miami. This now gives them over 137,000 sq. ft. of warehouse space at the Miami International Distribution Center at 2003 NW 70th Avenue, Miami, Florida [MAP]. The 220,000 sq. ft. MIDC warehouse building is now 100% occupied by Armellini and several other tenants also in the perishables business. The expansion space was chosen to warehouse Armellini’s growing mass market production services, the property’s proximity to Miami International Airport and the cooler refrigeration units that were already existing in the warehouse space.

Stephen H. Smith, President of ComReal Miami, states that “Over 70% of the flowers imported into the United States enter through Miami. Armellini provides complete logistics services to the floral and other industries.”

For more information on this transaction and the Miami industrial market in general, please contact Stephen H. Smith, SIOR and/or Edward Redlich, SIOR, CCIM at 786-433-2380. For other Miami warehouse spaces for lease visit www.MiamiWarehouseTeam.com

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