Industrial Construction in Miami Continues

Flagler Development continues to lead Miami developers, both in quality of construction and total square feet being delivered.  Flagler’s current projects include both South Florida Logistics Center and Flagler Station Phase III.

Adjacent to the Miami International Airport, Flagler is in the middle of their industrial project known as South Florida Logistics Center. Very little warehouse space is left in Building 4, as they prepare to build Building 5. Some of the larger tenants in this business park include: PODS, The Elite Flower, Flagler Global Logistics, Solutions 2 GO, and Goodyear International.

In Medley, Flagler is just 3 months away from completing Building 7 (pictured above), while Building 6 is slated for completion by June 1. Most of Building 7 has been pre-leased and a good amount of Building 6 is also spoken for. A few of the companies that will call Phase III home in 2016 are: Tropical Shipping, Gap Forwarding, and Caribtrans Logistics.  

For a complete list of available warehouse space for lease in Miami, email us now or contact us at 786-433-2099.

Listing: Miami Warehouse for Sublease

Is your company looking for overflow warehouse space, dead storage, or looking to save costs by sharing warehouse space near Miami International Airport?

The ComReal Miami Industrial Team just listed a small warehouse space for sublease within Miami International Corporate Center, less than 2 miles from Miami International Airport cargo area and only  11 miles from Port Miami. Shared office space can be made available, warehouse racking is available, and you can lease for as little as 6 months. The warehouse is dock height with rear truck loading, and freight forwarding services are also available.

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Renewal Rates & What You Should Know

Renewal lease rates are skyrocketing and tenants are experiencing sticker shock as they receive renewal proposals from their landlords.

Five years ago, the market had bottomed, Miami’s industrial vacancy had tripled, and landlords were doing everything possible to retain existing tenants and attract new ones. Tenants’ leases often involved many months of free rent, low rental rates, and an abundance of tenant improvement dollars. On average, a tenant could have obtained a 5-year lease on a 10,000 sq. ft., Class B warehouse space in Doral for $6.50 per sq. ft. industrial gross with 2-3% annual increases, receiving almost all the tenant improvement dollars they required.  

Coming back to 2nd Quarter 2015, those same tenants who (with their 3% increases) are currently paying about $7.30 per sq. ft. now face lease proposals at market rates of $9.00 to $9.25 per sq. ft.—that’s beyond a 20% rental rate increase!  

When it comes to lease renewals, not only are landlords raising rental rates to match current market rates, but they have also become tightfisted on free rent and tenant improvement dollars. The majority is not even offering renewal options.

So where does this leave you, the tenant?

Your landlord has a real estate broker representing them and their interests. As a tenant, you need an industrial broker on your side. Your landlord has already calculated that they will compensate a tenant’s broker: If you renew without a broker, that’s just more money in your landlord’s pocket.

What benefits does a tenant representative offer you?

There are two types of industrial tenant representatives. There is the decent broker who is only looking to do a deal with you by locating properties and assisting you in negotiations. Then there is the good broker who adds value to your bottom line; the tenant representative who determines how each property will affect that bottom line and explains the financial advantages & disadvantages of each building. This representative will show you how your business will be financially impacted and whether you will save money when you: 

Utilize cubic feet in the warehouse. Does your broker understand your business well enough to explain the cost per pallet in relation to your warehouse rental rate per sq. ft.? 

Purchase a Very Narrow Aisle system. Does it make sense to invest in VNA forklifts that allow you to use the new 30’+ ceiling heights, cutting both warehouse space and rent by up to 25%? 

Utilize energy-efficient lighting in your warehouse. Is your broker aware of the savings yielded by automated lighting?

Assess the location of your warehouse in relation to your product’s destination. Does your broker know how many containers you move per day, or understand how access to various expressways is vital to your business?

Relocate to exploit tax incentives. Does your broker have relationships with the people who specialize in assisting companies with tax breaks? 

Most industrial brokers do a decent job at assisting their customers in navigating the South Florida industrial real estate market. An excellent broker dives deeper into the deal, helps you understand the advantages and disadvantages of your warehouse space, and, most importantly, adds value to your bottom line.

For Sale: Cooler Warehouse in Miami

A Miami warehouse with freezers has hit the market for sale or lease. ComReal Miami’s Industrial Team has exclusively listed 650 NE 185th Street, Miami, FL. The warehouse is comprised of +/-80,000 sq. ft., +/-1,700 sq. ft. of office space, +/-13,000 sq. ft. of refrigerated loading area, and +/-65,000 sq. ft. of freezer.

Photo courtesy: SkyDrone Logistics

Photo courtesy: SkyDrone Logistics

This fully racked, CSX rail-served warehouse was the former home to Phoenix Industries. There are over 3,000 amps available to the property, 28’ clear ceiling height inside the freezers, 12 dock high doors and 1 ramp. This industrial property is ideal for the distribution of perishable products.

The other companies in the neighborhood include Publix, Southeastern Food Distribution and Kansas Marine. Many large food distributors have chosen this area because of the strategic geographic location to be able to quickly serve both Miami-Dade and Broward Counties.

For pricing, contact the Miami Industrial Team for more details.

Palmetto Facing Warehouses in High Demand

The ComReal Miami Industrial Team successfully leased 4275 NW 77th Avenue, Miami, FL.

Prior to being leased, this Miami warehouse was being used as overflow storage for Panda Kitchen and Bath of Miami.  The warehouse was listed for lease with an asking price $8.00 per sq. ft. It is a street level warehouse with a large truck court; it has Palmetto Expressway frontage and totals 38,000 sq. ft. 

Ed Redlich, Chris Spear and Edison Vasquez marketed the property for sale and for lease. Because of the ComReal Miami Warehouse Team’s expertise, with properties on the Palmetto Expressway, they received many offers both for purchase and to lease within days of placing it on the market. The ownership decided to lease the property to a local motorcycle dealer that was looking to expand their existing Miami operation.

For more information about the disposition or acquisition of a warehouse with Palmetto frontage, contact us for your free consultation. 

Read more about our ComReal Miami Industrial Team

Please contact us with any questions or inquiries!

Flagler's New Warehouse Buildings

South Florida Logistics Center (SFLC) proceeds forward with building new warehouses near
Miami International Airport. In the picture above, you can see that they are clearing the land to make way for Building 4. SFLC has completed three warehouses over the last two years. Building 1 is 100% leased; Building 2 is approximately 70% leased and Building 3 is 80% leased.

Some of the larger tenants in Buildings 1 & 2 include: Flying Food Group, Goodyear, 
Flagler Global Logistics, The Elite Flower, and Solutions 2 GO. Several 10,000 to 20,000 sq. ft. users occupy Building 3. Asking lease rates start at $10.75 per sq. ft. industrial gross.

Miami Cooler Warehouse Update

Miami warehouses with coolers are in hot demand. With over 90% of all flowers and 70% of all perishables coming into the United States and making their way through Miami, more and more companies are seeking Miami warehouses with refrigeration.

Despite all the Miami warehouse space absorbed during 2014, very few deals were done where refrigeration was involved; although the demand for cooler space is high, very few companies can afford or desire to make the investment to install coolers in a warehouse. Most companies would rather wait and hope they are able to obtain the next cooler space that comes on the market.

In regards to cooler warehouses, only 5 sizeable deals were completed last year, and ComReal Miami’s Industrial Team was involved in 4 of the 5 transactions. ComReal Miami’s Industrial Team has built relationships with those involved in the perishable industry and those relationships have led to the many successful transactions over the last few years.

With the percentages mentioned in the first paragraph, as the population in the U.S. continues to grow, more people will need to eat - and with the cost of farming overseas being often cheaper, imports are likely to increase through the Miami hub. Going forward, this will continue to result in an increased demand for cooler warehouses. 

If you would like more information about cooler warehouses in Miami, contact the Miami Industrial Team.

Doral Warehouse Sells for a Premium

Atlantic Paints - Miami Warehouse

ComReal Miami’s Industrial Team represented Atlantic Paints in the sale of its warehouse in Miami, located at 5200 NW 77th Court. The property was placed on the market in late 2013. Because of ComReal’s marketing strategies, within a few short weeks the property was under contract for $1,475,000 ($127 per sq. ft.). “Our unique marketing approach with this property targeted likely buyers and gave the property the exposure it needed. This strategy paid off.” adds Chris Spear.

Built in 1970, the subject property is a freestanding building of 11,577 sq. ft. with Palmetto Expressway (SR 826) frontage and a small fenced parking lot. These features added value to the warehouse and allowed the seller to obtain top dollar for the property. Recognizing its great value and future potential, Orion Merchant Solutions seized the opportunity to place the property under contract.

This sale represents the increased value that high traffic exposure adds to a property. “Using our data and knowledge of the real estate market in Doral, we priced the property to obtain the best sale price for our client.” states Edison Vasquez. Had this warehouse been in the same neighborhood but not on the Palmetto Expressway, the sale price would have been as much as 25% less. The supply of properties with frontage on Palmetto Expressway is very limited; any owner with a property with this advantage will get a premium price for their property.

Orion Merchant Solutions will do some improvements to accommodate its business and will be relocating to this property in a few months.

For more information on this transaction and for market information on the industrial real estate market in Miami, contact the ComReal Industrial Team at 786-433-2380.

Doral Warehouse for Lease

Adjacent to Miami International Airport is a business park known as Miami International Commerce Center (MICC). Currently, there is only one Class A warehouse space available in this business park.  The space is located at 8190 NW 21st Street.  It is comprised of +/-28,500 sq. ft. with 14 dock doors, 1 ramp, 24' ceilings, and has frontage on NW 82nd Avenue.  The warehouse is owned by PS Business Parks (PSBP).  The asking rate is $9.75 per sq. ft. There are no other spaces like it available in the Doral area.

Contact us for the floor plan, for more details, or to schedule a tour.

Americas' Gateway Park Warehouse

ComReal Miami's Warehouse Team is proud to showcase a 102,000 sq. ft. Class A warehouse located at 1800 NW 89th Place, inside of Americas' Gateway Park, in Doral, FL. The warehouse is for sale or lease.

The property is comprised of +/-31,560 sq. ft. of office, +/-52,750 sq. ft. of refrigerated warehouse space, and +/-18,000 sq. ft. of dry storage warehouse space. It sits lakeside on approximately 5.88 acres.  The warehouse has 19 dock loading doors, 2 drive-in ramps, 2 backup generators, 20'+ clear ceiling height, has heavy electrical power, is fully sprinklered, and has a beautiful 180-degree view of Doral's Fingerlakes.

For more information, feel free to visit the website, AGP Building, or contact us for complete details.

German Company Leases Warehouse

KTB-USA Import-Export

ComReal Miami welcomes KTB-USA Import-Export to Miami.  In November 2012, KTB and ComReal started KTB's search for a Miami warehouse to lease.  KTB returned to Germany to discuss their options and business strategy for the US market.  When KTB had returned to Miami in March 2013, ComReal had located a 10,721 sq. ft. space inside of Americas' Gateway Park, at 2021 NW 89th Place.  KTB will be creating new jobs in the City of Doral, and they anticipate growth over the next 3 years.

Florida Ports Council's New Publication

A new publication has been advertised by The Florida Ports Council, it is going to be known as the “State of Florida Ports”.  The report will give information on each of the Florida ports. It will feature the ports’ projects, their impact on the state and local level, and will also include how Governor Scott has influenced and supported the ports.  Florida ports have had to come up with creative ways to get funding in order to “out do” their competition (other ports around the U.S.).  Port Everglades and Port Miami have some big enhancements going on, including the “deep dredge” and return of the rail at Port Miami.   Container Ship at Port Miami   For the complete article, visit Dredging Today, and for more information on the Florida Ports Council, visit  the Florida Ports Council website.

2013 Miami Industrial Market

Miami Warehouse Industrial Market  It's 2013 and Miami warehouse market activity is in full swing. Miami's industrial market has been active with new construction, Port Miami's continuing of the deep dredging, large tenants looking at possible new spaces and a large bankruptcy.   Industrial institutions such as DCT Industrial Trust, KTR Capital Partners, Prologis, Flagler, Liberty Property Trust and Industrial Income Trust started development of new projects in 2012 which they are currently finishing, and some have developments which will break ground in 2013.  Over 1,200,000 sq. ft. of Miami warehouse space is being built on the speculation that tenants will leave their current locations to occupy the new Class A warehouse space or new companies will come into the Miami market.   A few highlights through February 2013:  

  • Except for one small space, DCT Industrial Trust has completely leased their two new Class A warehouses, totaling +/-334,000 sq. ft., in Pan American West.  Schenker leased both buildings except for a +/-17,000 sq. ft. space, which DCT is building out 10% office space in hopes to have it ready for a tenant's need for a quick occupancy. Based on the current market, that space should be leased by the end of March.

 

  • KTR is finalizing the construction of their new Class A warehouse, also in Pan American West.  This is a single building of over 330,000 sq. ft. They have yet to lease any space.

 

 

  • There are several large tenants, over 100,000 sq. ft., in the market looking at possible new Miami warehouses, but there is also always the chance they do a lease renewal at their current location.

 

  • The big story over the last two weeks has been Banah International Group. Banah International Group, a large sugar company, has gone into bankruptcy under Chapter 11.  They plan on repaying their debt and restructuring. They were leasing over 300,000 sq. ft. of warehouse space in Hialeah.  Terreno Realty Corp, as California based REIT, was the landlord.  Terreno Realty Corp has plans to put the property, 215 SE 10th Avenue, in Hialeah, back on the market for lease.

 

  • Just a few buildings from the Terreno property is what is becoming known as Miami International Logistics Center (MILC), 725 SE 9th Court.  This property is currently owned by AMB, but is under contract and could quickly become the largest available contiguous warehouse space closest to Port Miami and Miami International Airport.  This warehouse is close to 500,000 sq. ft., is on CSX rail, is fully fenced, and sits on 20 acres which allows for extra trailer parking.

 

  • SeaFreight Agencies leased 150,000 sq. ft. of warehouse space, in Doral, at 9950 NW 17th Street.  The warehouse is owned by IndCor Properties.  In 2012, IndCor acquired a few buildings within International Corporate Park from Prologis, but had been slow to fill the space.  This was a good deal for the market and a great deal for the tenant.

 

  • Asking rental rates and vacancy are projected to remain stable.

 

  • University of Miami leased 70,500 sq. ft of warehouse space, inside of First Industrial's 142,804 sq. ft. warehouse, at 6891 NW 74th Street.  This warehouse had been vacant for several years.

 

  • Interest in the Miami industrial market from U.S. based firms, as well as international investors is going to continue.

 

  • As the amount of available land diminishes and the large warehouses continue to trade hands among the REITs, the industrial REITs will start to look at new ways to create value in the Miami market.

Aventura Warehouse Market

Aventura WarehouseAventura – The City of Aventura, formerly known as Turnberry, is a planned city in Northeast Miami-Dade County that was incorporated in 1995. Aventura comes from the Spanish word “adventure”.  According to the latest US census, the city has approximately 36,000 citizens.  It is home to Turnberry Isle Resort & Club, and lays claim to Aventura Mall, which is a 2,400,000 sq. ft. indoor shopping mall, making it the fifth largest mall in the United States.   Aventura is mainly a residential, retail, and office area. It is in the industrial submarket referred to as the North Miami Beach industrial market.  The City of Aventura has very little warehouse space, and is home to a few small flex space users.  

Doral Warehouse Market

Doral WarehouseDoral - The City of Doral, “Tree City USA”, is in northwest Miami-Dade County, Florida.  It is a mix of industrial and residential neighborhoods, and was incorporated in 2003.  It is located west of the Miami International Airport.  It has been named the 3rd best place in the USA to retire (by US News & World Report), 51st in Top 100 places to live and launch a business in the U.S. (according to CNNMoney.com) and it has also awarded – "Playful City USA" in 2010-2011.  The name Doral was derived from combining the names of Doris and Alfred Kaskel, the couple who built the Doral Golf Resort & Spa, now known as Trump National Doral, after the purchase of the resort by Donald Trump.   Doral has a large number of importers and exporters, because of its short distance to Miami International Airport and Port Miami, 1 mile and 12 miles respectively. Some of the major employers in the City of Doral include: Carnival Cruise Lines, Univision, U.S. Southern Command, BE Aerospace, Gold Coast Beverage Distributors, Telefutura, Hellmann Worldwide Logistics, and many government entities.   Doral has over 3,000 logistic associated companies, and it has the #1 Tile District in the United States. Doral has millions of sq. ft. of warehouse space.  Its warehouse vacancy rate at the business parks is around 4% and under 6% for the remainder of the city. The large industrial parks include: PS Business Park’s MICC; Prologis’ Beacon Centre, Beacon Industrial Park and Beacon Lakes; International Corporate Park (ICP); KTR’s Beacon at 97th; and Americas’ Gateway Park.