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Miami Commercial Real Estate News April 28, 2015
Keyes Commercial Realty
Shopping Center & Office Tower in The Works At 3000 Biscayne?
A mixed-use retail and office project could be in the planning stages at 3050 Biscayne Boulevard. Crescent Heights, the company that owns the land, posted renderings of the new development on their website. A caption under the rendering cryptically refers to 343,000 square feet of retail, along with 180,000 square feet…
Mindboggling: Wild New Architecture Coming to the Design District
The next phase of the Miami Design District redevelopment has just been formally announced—an extension of the Paseo Ponti pedestrian mall and a northern plaza to be called Paradise Plaza along with new residential an a hotel—and along with it comes…
Planning Department Approves 2121 Wynwood Lofts/Retail project
A mixed-use Wynwood project was approved by Miami’s Planning Department last week. 2121 Wynwood is to include 7,200-square-feet of retail space on the ground floor, according to marketing material. It will also include ten residential lofts on several levels above the retail space. The property is located at 2121 NW 2nd Avenue.
Development Update: Bjarke Ingels’ Marina Lofts Towers to Go Condo, Partially
Asi Cymbal, the developer of starchitect Bjarke Ingels’ Marina Lofts on the south side of Fort Lauderdale’s New River, told the Real Deal that the project will now be a mixture of rental apartments and condominiums, instead of being entirely rental. The three-tower project was designed with a…
Historic downtown Coral Gables building trades hands
One of the City Beautiful’s oldest commercial buildings sold for nearly $2 million, Sperry Van Ness Commercial Realty announced Monday. Tenants of the 4,933-square-foot building at 290 Aragon Avenue in Coral Gables include Space Coast Credit Union and…
Miami Industrial Real Estate Market Report First Quarter 2015
The new year has started very strong for the Miami industrial real estate market. The average lease rates have already increased to $8.53 per sq. ft. and the average vacancy rate fell to 5.2%. The net absorption for the 1st quarter was an astounding 1.4M square feet. The largest lease so far this…
Florida bill could make it tougher for developers to terminate condo associations
Matching bills in the Florida Legislature would make it more difficult for developers to terminate condominium associations, a practice that can force some residents to lose title to their units against their will. A condo termination often occurs when a developer that owns the majority of the units wants to sell the property…
Math professor multiplies SoFla holdings with Walgreens purchase
Best Western boutique brand “Vib” to debut at 7.4-acre Edgewater site
Best Western’s new boutique brand will make its South Florida debut in Miami’s Arts and Entertainment District.
Vīb, short for vibrant, will one of two properties in the U.S. Best Western will team up with Richard Meruelo, who purchased the 7.4-acre…
Comment of the day (re LED tower): “It is perfect. It will be…
“It is perfect. It will be visually stunning and New Yorkers will be a bit upset that their favorite architect du jour is busy ennobling Miami. Best of all: the message it projects will be supremely vulgar. The cost of advertising on this monster will be so high, it will set superbowl standards for…
Miami’s Habitribe Fund seeks $50M through crowdfunding for real estate investment
Miami-based Habitribe Fund I has launched on the SBREfunds.com crowdfunding market place with the goal of raising $50 million. The crowdfunding platform run by Portland, Or.-based Fairway America is for accredited investors that can anonymously review opportunities…
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Miami Commercial Property News April 27, 2015
Simon Property Group joins Brickell City Centre mall project
Mall giant Simon Property Group has joined the team developing the 500,000-square-foot retail component of Brickell City Centre. Master developer Swire Properties previously brought Whitman Family Development, the owner of the Bal Harbour Shops, in on the deal, and now Simon (NYSE: SPG) has become the third partner…
Proposed Condo Developments Could Transform Little Havana
Little Havana was an abandoned commercial district in the 1950s. A decade later this blue collar neighborhood became home to many exiled Cuban immigrants following the 1959 Cuban revolution. Now, this Hispanic community has become a vibrant commercial district and tourist destination. The neighborhood has…
Miami commercial real estate rally rolls on
All appears to be well in Miami-Dade’s commercial real estate world. Transactions involving trophy office buildings in downtown Miami and Brickell have been spurred by dropping vacancy rates and rising rents, thanks to a lack of inventory. The hotel sector continues to sizzle with eye-popping deals including the sale of the Miami Beach…
Four major development projects on Broward agenda
The Broward County commission will give four big development proposals their first hearings at its April 28 meeting. Walmart Stores East (NYSE: WMT) and Aventura-based Master Development want to build a shopping center in Miramar.
Weston charter school campus turned over to former owner
A Weston property that serves as the home of Imagine Charter School was turned over to its former owner as part of the consideration for releasing a mortgage. Dr. Lloyd A. Moriber, of Bal Harbour, sold the 67,759-square-foot campus on 7.65 acres at 2420 and 2440 Glades Circle to Weston Office Properties for $12.5 million.
Is the “Miami Innovation Tower” Right for Overtown/Park West?
Taller than the Space NeedleA 600 foot tall advertising tower in Overtown/Park West may dominate the landscape in years to come that will top off the insult to Overtown itself that has was long ago done with the construction of I-95. Is this really any path of progress towards racial or economic…
Laquer scores legal victory in fight for piece of Miami Worldcenter
Real estate broker Edie Laquer’s lawsuit, seeking an ownership stake in the $1.5 billion Miami Worldcenter project, has been revived after an April 22 ruling by Florida’s 3rd District Court of Appeal. The mixed-use project, on 27 acres on the north side of downtown Miami, is one of…
Eleven In The Roads, A Brickell-Area Residential Project, Set To Break Ground Next Week
Construction is about to begin on Eleven In The Roads, a residential project in the Brickell area. Just 24 units are being built at Eleven, in two separate three-story buildings designed by architect Kobi Karp. The 24-unit project is being marketed as a luxury project with high-end appliances and finishes, at prices averaging $425 per square foot.
Another Broward Schools whistleblower alleges misconduct, this time in land sale
A senior property coordinator for Broward County Schools who resigned last month claims district administrators appear to have violated state law by not telling the school board about a bidder that offered to pay a higher price for surplus school land….
Architectural Craziness: What are the ‘8 wackiest South Florida…
What are the ‘8 wackiest landmarks dreamed up for South Florida’? Here are a few contenders, although better ones are no doubt out there: The Miami Marlins’ home run sculpture, Gulfstream Park’s giant pegasus, SkyRise Miami, an indoor ski slope on a superfund site, Resorts World Miami, and of course…
Sleeping Around: South Beach’s Morris Lapidus-designed Nautilus set opening date…
South Beach’s Morris Lapidus-designed Nautilus Hotel has finally set an opening date, or at least a soft opening date. Reservations on its website are being accepted as of July 6th. There’s also one rendering of a hotel room interior, which HotelChatter generally complements except for saying “what…
Giant billboard tower could grant millions to Miami CRA for approval
The developer of a proposed electronic billboard tower that would be about as tall as the Gateway Arch in St. Louis could grant millions in incentives to a Miami community development agency in exchange for approval.
Starchitecture: Bona-fide Starchitects are Designing That Giant LED Tower
This morning the Miami Herald updated the article we reported on yesterday about the giant Miami Innovation Tower that developer Michael Simkins is proposing for Miami’s Overtown neighborhood with two new renderings and a rather interesting piece of information: it’s being designed by SHoP…
Revenge of the megaprojects: The Design District Pedestrian Mall Will Extend to 42nd Street
DACRA has formally announced the next phase of the Miami Design District’s big expansion in today’s Miami Herald: the extension of the pedestrian Paseo Ponti two blocks north where it will terminate in an art filled plaza. According to guide maps that plaza will be called Paradisea…
Miami Emerges as Promising Tech Cluster
Miami, long known as the gateway to Latin America, is fast becoming the technology hub of the region, according to CBRE.
Swire, Simon and Whitman Tag Team on Brickell Retail
You might call them the Big Three. No, it’s not Wade, Bosch and James. It’s Swire, Whitman Family Development and Simon Property Group. Find out what they are up to…
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Flashback Friday 1984: WTVJ Previews Then Soon to Premiere TV Show Miami Vice
As much as Miami Vice highlighted the unseemly side of the city, many believe it served to put Miami on the map. If so, it may be the foundation of Miami’s rise to global prominence, including its recent passing of Paris on it way to the rank of sixth on the Knight-Frank list of cities most important to ultra-high-net-worth individuals, and the resultant massive commercial real estate developments in the area.
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Miami Commercial Real Estate News April 24, 2015
New York developer buys building in Miami’s Edgewater for $19M
A partnership between Terra Group and Avra Jain sold an office building in Miami’s Edgewater neighborhood for $18.75 million to a New York developer. Terra Skylar 3550 Investments, a joint venture between Miami-based Terra Group and hotel owner Jain, sold it to MREG 3550 Biscayne Owner, an affiliate of Mack Real Estate Group…
New shopping center bulking up with a gym in North Miami-Dade
UFC Gym will open its first location in Miami-Dade County at La Fontana Shops, a new shopping center under construction on Biscayne Boulevard in Miami, The Real Deal has learned. The fitness center, which operates locations in 28 states…
Developer of Miami-Dade mega-mall closes land deal
Triple Five Group closed on the purchase of 82 acres in northwest Miami-Dade County as the first piece in its plan to build the largest mall and theme park in North America. Miami-Dade County sold the land near the southwest corner of Interstate 75 and the Florida Turnpike for $12.3 million to International Atlantic LLC, an affiliate…
NY investors pick up Miami Gardens shops for 3x last sale price
AMLI buys second Miami-Dade apartment project for over $100M
From Russia, etc., with less love; an infographic of reduced foreign money
As the U.S. dollar continues to gain strength in a growing economy, the buying power of the primary foreign investors helping to fuel South Florida’s current boom cycle is sputtering. Currency devaluations along with other destabilizing economic and political factors in Latin America, Europe and Russia are making it harder…
Eleven In The Roads, A Brickell-Area Residential Project, Set To Break Ground Next Week
Construction is about to begin on Eleven In The Roads, a residential project in the Brickell area. Just 24 units are being built at Eleven, in two separate three-story buildings designed by architect Kobi Karp. The 24-unit project is being marketed as a luxury project with high-end appliances and finishes, at prices averaging $425 per square foot.
Miller Road Publix opens in Miami after rebuild, expansion
Lifestyles of the rich and richer: Miami Has 3 of the 15 Most Expensive Streets in the Country
According to data crunched by Zillow of “streets with at least ten homes”, three of the fifteen most expensive residential streets in the country are in Greater Miami, including the top spot, Indian Creek Island Road, the only street in the rarified enclave of Indian Creek…
Here’s Tommy: Tommy Hilfiger is Building a Party Pavilion at the Raleigh
The City of Miami Beach approved Tommy Hilfiger’s plans to restore and upgrade South Beach’s super-duper iconic Raleigh Hotel last week. The highlight of his plans, which are being designed by Touzet Studio, is a new structure behind the pool which is designed to reflect the…
Billboard Wars: Gird Your Loins, the Giant Digital Billboard Wars Are Back
The giant digital billboard wars are back, people, and this time it’s for a site in Overtown just outside Miami Worldcenter where the city has supposedly considered building a media tower since 2009. Now developer Michael Simkins wants to build a 633 foot media tower with five huge digital signs…
Buzzkills: Miami Beach proposal to close clubs by 2 AM…
Miami Beach proposal to close South Beach clubs by 2 A.M. is just the latest in a long history of silly fun-killing laws the city has enacted, or come close to. Sunscreen, rubber food, bathing suits, and ‘boogie-woogie’ music were all considered menaces to society at one point or another.
NAI Miami Negotiates Sale Of Fort Lauderdale Industrial/Flex Building
Edward Schmidt, CCIM and Timothy Merriman represented the seller in the sale of the 16,413-square-foot building located at 1341 Southwest 21st Terrace.
Broward becomes its own destination: TRD panel
Broward County has grown to rival its bigger brother Miami-Dade as a destination for living, investing and developing, according to panelists at The Real Deal’s Broward Real Estate Forum & Showcase. The county was stagnating a decade ago…
Panel: SoFla can still count on foreign buyers — just not as much
South Florida is more of a “think tank” and less of a “drink tank” these days, a contributing factor to increased domestic and foreign investment to the region, according to developer David Martin, a panel…
Whole Foods Market-anchored center in Wellington sold to Weingarten for $54M
Weingarten Realty Investors acquired a Wellington shopping center anchored by Whole Foods Market and three out-parcel buildings for $53.55 million. The property is just south of the Mall at Wellington Green along U.S. 441/State Road 7. The transaction was recorded in two deeds.
Photos on the scene at Related Group, Books & Books series
The Related Group and Books & Books recently held book signings and talks at two South Florida Related projects.
Juan Carlos Botero signed copies of his book, The Art of Fernando Botero, at both events…
New Lincoln Road Apple Store to open Saturday
The new Apple Store on Lincoln Road will open this Saturday at 10 a.m., when it will host “a grand re-opening celebration.” Apple will close its current longtime store, at 738 Lincoln Road, two hours earlier than usual, at 9 p.m. on Friday, to…
Fortress affiliate buys Palm Beach County retirement home for $24M
Holiday Retirement, a portfolio company of Fortress Investment Group (NYSE: FIG), acquired the Windward Palms independent living facility near Boynton Beach. Boynton Beach Retirement Residence, an affiliate of Seattle-based Hawthorn Management Services, sold the senior center at 8440 S. Military Trail for $24.08 million…
President Obama, South Miami Mayor Philip Stoddard, and FPL Nuclear
In great environmental battles — like the one to determine whether FPL will be the first utility in decades with the permit to build two new nuclear reactors — there is always a turning point. That turning point may have occurred the other day when a camera caught South Miami Philip Stoddard…
The Stage Miami closes in May, seeks space to relocate
The Stage Miami, a live music venue in Miami’s Design District, will close its doors early next month because of what it says are “dramatic changes in the area.” The building and land where The Stage is located will be sold, and the venue’s lease will not be renewed, the company announced on its Facebook page on April 15.
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Miami, One of the Most Important Cities to Ultra High Net Worth Investors
Moves Up Ranking Of Most Important Cities For Ultra-Wealthy
It only takes a short walk around Miami to see that just how much this magical city attracts wealthy residents and investors from all over the globe. Miami’s luxury evolution has seen it constantly attract high net worth individuals (HNWIs) and this seems to be on the rise. Miami’s attraction of HNWIs has a direct effect on its Real Estate Investors. UK based Global Wealth Researchers Knight Frank made an attempt to answer this question in regards to Miami’s quality of life and several other indicators.
Why is Miami an Important City for HNWIs
The research by Knight Frank considered a number of factors in determining which cities play an important role for the world’s ultra rich.
• Each city’s individual Ultra High Net Worth Individuals (UHNWIs) population count – As of this writing, only about 229 UHNWIs resided in Miami. This is significantly lower than other cities like New York, San Francisco, Boston, Chicago and Houston. Miami is however on fast and gradual rise in this luxury cities list and considering it only started getting attention recently, its increase in popularity is an important factor. There is an increase in the number of Latin Americans and Europeans who are permanently establishing themselves in Miami and as a result, we can expect the number of UHNWIs to increase.
• The Cities’ Important Economic Activity and Business Links – Miami is famous for its “Fun in the sun” but has gradually transformed into a Global Business Hub promoting itself as both a business hub and holiday destination. South of New York City, Miami has the largest concentration of international banks as well as an ever increasing number of international establishments setting up their headquarters and Latin American Hubs in the city of Miami.
• Quality of Life / Lifestyle Offer – Miami earned it’s famous for one main reason, it’s lifestyle. Miami follows the “work hard, play hard” and true to this,, it is rated by Forbes as the happiest place to work in the United States. Miami has amazing nightlife, beaches, all year sunshine, amazing real estate industry and high end restaurants. Miami’s has a recently budding luxury fashion scene and many international events are now being held in Miami.
Real Estate Investments and Ultra High Net Worth Individuals
The 2014 Wealth Report, more than half of all the wealth advisors who took part in an Attitude Survey were keen to predict that UHNWI investing in Miami’s real estate would increase, and true to this, 40% of the respondents confirmed that this had actually happened. Private investors make up a quarter if all investments into commercial property. They hold the same quota for residential investments as well.
The Unites States enjoy particular interest from Chinese and South American investors. Miami in particular has sparked a lot of interest from Latin American private investors. Demand is mainly focused on the real estate industry but there is a gradual rise in interest towards commercial properties. Miami is also under the radar of wealthy Chinese investors stealing interest from Brisbane, Frankfurt, Manchester, London, Sydney and New York. Real Estate prices in Miami are lower than those in Shanghai, China by 25%. A key component of Miami is the cultural diversity and the quality of life that is on offer, and this serves as an important attraction feature for Chinese investors.
Miami is considered an affordable destination compared to other luxury destinations around the world. It also provides some of the best ocean views in the entire list of the world’s luxury destinations. Miami also has lower real estate taxes and attractive apartment and condominium prices that is making the city attractive to New Yorkers. The United states has the highest interest from wealthy private investors after Singapore and London. Miami is a key destination and as a result, benefits from Latin American and Chinese investors.
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Miami Commercial Property News 4/23/2015
Keyes Commercial Office Building
Goldman team growing Wynwood again
One of the first projects to bring hotel rooms to the bustling Wynwood Arts District is planned by Goldman Properties, a key player in the area’s metamorphosis. And, no surprise, the project will showcase plenty of art. G40 Wynwood aims to mix 72 residences, 68 hotel rooms, about 11,000 square feet of ground floor retail and…
Parking Palaces: The Design District’s high design…
The Design District’s high design City View Garage, with its huge art installation by John Baldessari, is now open for business. This adds 558 parking spaces to the 303 spaces in the underground garage that is accessed through the Fly’s Eye Dome, to the Design District’s total count.
Track cleared for All Aboard Florida
All Aboard Florida is moving ahead with the northwestern portion of its MiamiCentral plan, which will bring a new grocer to the urban core. The project, 3 MiamiCentral, is planned for a block hugged by Northwest Sixth and Seventh streets and Northwest First Court and Second Avenue. The city’s Urban Development Review Board…
Finito: Related’s/Pininfarina’s Beachwalk Hallandale Beach is Finito
Closings at the Related Group’s Beachwalk Hallandale Beach have begun, marking the completion of the 25th condo tower “completed east of I-95 in the South Florida tr-county region” since the the market crash, the Great Recession, and this real cycle began in 2011. Miami’s real estate rebound has…
Economy Watch: Growth in the Euro Zone Might Benefit US Real Estate via “Miami Effect”
Should the disruption of the euro zone cause enough uncertainty among investors, one of the assets they’ll turn to is American commercial and residential real estate. Call it the “Miami effect”.
Jade Signature photos, before and after
Construction at the Jade Signature in Sunny Isles Beach is going strong. Crews recently poured the concrete slab for the tower’s ground floor, topping off a massive endeavor to create one of South Florida’s biggest underground garages. Here’s an inside look at construction progress…
Report: Miami, Atlanta Key Investor Targets
Half of all real estate investors in North America plant to amp up commercial real estate buys in 2015. Four Southeast markets are high on the list. One is Miami.
Edie Laquer Wins Appeal in Beef With Miami Worldcenter Developer
Miami power real estate broker Edie Laquer wins an appeal in a fight with Miami Worldcenter developer Art Falcone over her claim to a share of the transformative project.
All Aboard Florida and It’s Connections
Watch on YouTubeK.C. Ingram Traylor on All Aboard Florida. I wrote about the Hedge Fund — Fortress — that owns All Aboard Florida in relation to their plans to convert Natural Gas to LNG in Medley.
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The Difference Between Usable and Rentable Square Feet
Keyes Commercial Building Lobby
Evaluating the best deals on any commercial properties includes understanding the difference between rentable and usable square feet of the real estate property. In general, office space is advertised as rentable square feet which is higher than the actual amount of office space that the actual tenant can or will occupy.
Usable Square Feet
This is the actual area that a tenant will occupy in running his business. In the case of a partial floor lease, such space will include the office space and any private restrooms and storage space. There will be no exclusions for recessed entries, columns, or any other similar space. As an example, column space is often considered fair game when coming up with the total amount of usable square feet. In a case where a tenant will occupy an entire floor, the usable square feet will be everything that is inside the building’s boundary floor, less any stair ways and elevator shafts. Unusable spaces such as electrical and mechanical rooms, janitor closets, hallways, kitchenettes, receptions and private bathrooms are considered as usable square feet.
Rentable Square Feet
A commercial real estate building is made up so much more than cubicles and private offices. There are lobbies, meeting spaces, corridors, restrooms and stairways. These are all used by tenants and landlords will normally charge for their use. Rentable square feet therefore refers to the total amount of usable square feet as well as the pro-rata share of the common areas in the building. Pro-rate basically means that tenants will pay a proportionate amount to the amount of space they lease/occupy in the building.
Load Factor
Landlords use a load factor in order to calculate the total amount of rentable square feet. Load factor can sometimes be referred to as an add-on factor or common area factor. Load factor is a percentage that is based on the building’s common areas. For example, if a building has a total of 10,000 square feet, and of these, only 8,000 usable square feet, then this means that 2,000 sq. ft is reserved for common areas and the load factor would therefore be 1.25. (load factor = rentable square feet / usable square feet)
The load factor is calculated for each individual tenant to come up with an appropriate total rentable square feet value. (i.e total rentable square feet = load factor * total usable square feet)
This formula is important in determining the best ideal office space for a company. Buildings with a lower load factor can save a company a lot of money, but on the other hand, a company may decide to incur the expenses associated with a large and fancy lobby area and kitchenette. Knowledge of a building’s load factor allows tenants to make intelligent decisions about the value of a building and their investment. Load factor is normally represented as a percentage.
Building Owners and Managers Association International (BOMA)
Most landlords and lease agreements use BOMA standards when measuring buildings. Leases should mention whether the buddings measurements were taken according to the Building Owners and Managers Association Standards. It is advisable for tenants to hire an independent professional to verify any given measurements . As expected errors do occur and they can end up costing you a lot of money during the tenure of a lease agreement.
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Miami Commercial Real Estate Related News April 22, 2015
Berger Singerman Steers $37.7M Auction Bid for Plantation’s Fashion Mall
Berger Singerman’s James Berger, Shahram Siddiqui, Barry Lapides, Paul Singerman, Brian Gart and Isaac Marcushamer represented Encore Housing Opportunity Fund in the bankruptcy acution purchase of the Fashion Mall.
Miami River Inn sells for $8.6 million
The Vagabond Group, a company led by developer Avra Jain, has purchased the historic Miami River Inn hotel. Aztec Group represented Jain’s company and announced the sale of the 58-unit property this week, which sold for $8.6 million — up 105 percent from its previous sale price of $4.2 million in July 2013, according to…
South Beach office building sold for $23M
Whole Foods Market location in downtown Miami sold to EDENS
The space occupied by the recently opened Whole Foods Market in downtown Miami was sold to national shopping center investor EDENS for $19.63 million. Miami-based P&G Development, managed by Luis A. Pulenta, sold the 41,000 square feet of retail space and 140 underground parking spaces at the Met 3 building, at 299 S.E. Third…
BBX inks $31M in deals for West Palm Beach development sites
BBX Capital Corp. said it recently signed contracts to sell two development sites in West Palm Beach for a combined $31 million to an undisclosed third party.
Bank sells foreclosed Sunrise site at discount
BAC Florida Bank sold a repossessed development site in Sunrise at a discount to its former mortgage. The Coral Gables-based bank seized the 6.5-acre site at 6500 W. Oakland Park Blvd. in 2013 after foreclosing on Oakland Park Boulevard LLC’s $2.62 million mortgage. It recently sold the commercial-zoned land for $2.5 million…
Historically Sleeping Around: Call her Kaiser, because developer Avra Jain…
Call her Kaiser, because developer and historic preservationist Avra Jain is on a roll. The developer of the FAB-U-LOUS Vagabond Motel has picked up another, even more historic hotel, the Miami River Inn for $8.6 million, from its former owner, fellow preservationist Sallye Jude. Right now, she is…
Development Update: Contentious Alton Road Whole Foods Gets Snazzy Makeover
Developer Crescent Heights has pulled out the third incarnation to date of the Whole Foods Market they are proposing for the corner of Alton Road and 19th Street. This time around architect Chad Oppenheim has been brought in to vamp it up, an the end result is much more attractive.
Building housing Seasons 52 in Boca Raton sells for $10.25 million
A Boca Raton property leased to a Seasons 52 restaurant was sold. The building at 2300 N.W. Executive Center Drive was listed for $10.62 million in October by Marcus & Millichap’s Miami office and sold for $10.25 million last week to Boca Seasons 2300, LP.
Latin American investors buy downtown Delray Beach condo project
Downtown Delray Beach has attracted the attention of foreign investors as a Colombian-led group purchased a condominium development site. Jim Knight, of Delray Beach-based Knight Group, represented seller SW Delray One, managed by Joseph E. White and Maya Saxena, in the $9.03 million deal for the 1.12-acre site…
Miami Cooler/Freezer Warehouse Video
ComReal has published this video to promote an industrial property, a cooler/freezer warehouse.
Prologis Buys KTR Capital Portfolio In $5.9 Billion Deal
The portfolio includes 60 million square feet in 322 properties located in South Florida, California, New Jersey, Florida, Chicago, Seattle and Dallas.
Are Fort Laurdale and Miami Condo Buyers Different?
Is there really a difference between Fort Lauderdale and Miami condo buyers? Dev Motwani, president of Merrimac Ventures, thinks so.
Fort Lauderdale Beach is Not What it Used to Be
GlobeSt.com caught up with Dev Motwani, president of Merrimac Ventures, to get his thoughts on how the North Beach Village district is balancing new development with its laid-back vibe in part one of this exclusive interview series in part one of this exclusive interview….
Vagabond Buys Historic Miami River Hotel
“Bringing in a group with a passion for redeveloping historic properties ensures its bright future.”
A Condo-Hotel Revival?
Last year, a Bloomberg article suggested that homebuyers avoiding chores is fueling a condo-hotel revival in the United States. Newgard Development Group and Merrimac Ventures are getting in on the revival.
South Florida Wildlands Association on FPL Turkey Point Nuclear hearings today
A bit ironic – President Obama will be visiting Everglades National Park (on Earth Day) to discuss climate change and Everglades Restoration on the same day that the Nuclear Regulatory Commission begins two days of public hearings on FPL’s plans to build two new nuclear reactors on the shores of Bis…
Curbed Maps: This is a Pathetic Map of Every (?) Bike Lane in Miami
To protest the fragmented and incomplete state of the bicycle lane networks in modern American cities, the Washington Post created a map of every bike lane in Washington D.C. and other American cities (starting with just a few, but then mapping many more). The city that came…
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Miami Commercial Real Estate News April 21, 2015
Keyes Commercial Real Estate
Wells Fargo lends $46M for Downtown Doral condo tower
Codina Partners secured a $46.13 million construction loan from Wells Fargo Bank for its second condo tower in its Downtown Doral project. The bank (NYSE: WFC) provided the mortgage to Parcel C1 Property, an affiliate of the Coral Gables-based developer, to build 5300 Paseo near 8500 N.W. 52nd Street.
Whole Foods is back on the menu for Miami Beach
After facing stiff resistance for its plans to open a new Whole Foods on Alton Road, developer Crescent Heights has reportedly returned with a fresh design by architect Chad…
Big Week For FPL In Miami as Public Hearings for New Nuke Reactors Take Place
Sleeping Around: Miami Beach’s current hotel construction…
Miami Beach’s current hotel construction craze is old news. Another hotel building boom has come to Broward County, where major new projects like the Margaritaville Beach Resort, and the Melia, both in Hollywood, and the Gale, and Four Seasons, in Fort Lauderdale Beach, are underway. According to…
Avra Jain buys Miami River Inn for $8.6M
Historic mixed-used building in downtown West Palm for sale
An historic mixed-use property in the heart of downtown West Palm Beach’s entertainment and nightlife neighborhood has been listed for sale, owner Jason Weisman told The Real Deal. Clematis@Olive, at 219 to 225 Clematis Street, totals 47,857 square…
Boca Raton office towers trade for nearly $24M, seller takes a loss
A pair of office towers in Boca Raton recently sold for $23.75 million, almost $2 million below what their owner paid for them nine years ago. The Glades Twin Plaza office complex, at 2300 Glades Road, has two 50,000-square-foot buildings that are…
Investors sue American Realty for alleged “hidden scheme”
From the New York website: Investors in American Realty Capital Properties are accusing ex-chair Nicholas Schorsch of perpetrating a scheme that generated more than $900 million in managers’ fee and bonuses.
In a new class-action lawsuit, these investors say that…
Codina Partners lands $46M loan for Downtown Doral tower
Downtown Doral received a $46 million loan for one of its residential projects, 5300 Paseo, Miami-Dade County records show. Wells Fargo granted the mortgage to Parcel C1 Property, a company affiliated with Codina Partners, for the site at 5300 Northwest 85th Avenue. The 219-unit build…
What’s Really Driving Miami’s Multifamily Market?
GlobeSt.com caught up with Jeronimo Hirschfield, CEO of developer One Real Estate, to get his take on Miami multifamily drivers and opportunities in part one of this exclusive interview…
Buyers Have Closed On 44 Units At Nine At Mary Brickell Village In The Past Three Weeks
Closings are now underway at Nine at Mary Brickell Village. County records show that 44 units have been closed on since March 26, when they began. In total, the project includes 390 units. The developers of the 35-story project, Lynd and Starwood Capital, had originally planned it as a rental tower called EnV…
Paramount Miami Worldcenter is Already 30% Sold Out
Condo sales at Paramount Miami Worldcenter have not even officially launched, and approximately 140 units have already been reserved out of the 473 standard units in the building (in addition to the 473 standard units, Paramount will also include 12 Balinese-style villas and 28 flat and duplex penthouses to be released…
West Palm Beach marina plans mega-expansion
West Palm Beach soon could get more dock space for mega-yachts. Palm Harbor Marina plans to build an expansion worth “millions,” the Sun Sentinel reports. The project, led by Leisure Resorts, would add about 1,000 feet of dockage that could hold six yachts 160 feet or longer.
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The Different Types of Commercial Real Estate Leases
Commercial real estate leases are categorized according to two different rent calculation methods. These are “gross” and “net”. As a consequence of this categorization, there are three different types of commercial real estate leases. Gross lease basically implies that a tenant pays the landlord one lump sum amount for rent, and the landlord in turn pays for his expenses. On the other hand, net lease demands a smaller base amount but the tenant is responsible for paying other expenses that may be incurred during the lease tenure. The third type of commercial real estate lease is the modified gross lease which is a combination of the two different types of leases we have mentioned above. The terms of commercial real estate leases will differ from one building to another but this basic overview will help you find the best possible deal for your business.
Full Service Lease or Gross Lease
In a full service lease, the rent amount is an all-inclusive fee and the tenant does not incur any additional fees associated with the commercial property they are leasing. A full service lease is sometimes referred to as a gross lease. The landlord remains responsible for paying most or all expenses including insurance, taxes, and maintenance paid out of the rent received from the tenants. Janitory services and utility fees are included in one easy rent payment.
While negotiating a gross lease, a tenant should be keen to ask which additional janitorial services are included and how often these services will be provided. It is important to note that sometimes a tenant can be charged any extra utility consumption that is considered to be above the building’s standards. In such a case, if the tenant is a high consumer of any utility services such as electricity and water, this should be clarified in the lease agreement. The tenant is still responsible for his taxes and property insurance.
This type of lease is beneficiary to the tenant as it is hustle free to the tenant who can forecast his rent expenses without having to worry about additional charges that may be incurred. The tenant can concentrate on his business as the landlord remains responsible for the building.
Net Lease
In this type of lease, the tenant will be charged a lower base rent by the landlord for the commercial space being rented as well as any additional costs that are associated operations, use or operations that the landlord will pay. Such additional expenses can include property insurance, real estate taxes, common area maintenance taxes, acronymed known as CAMS. These include property management fees, janitorial services, water, sewer, trash collection, parking lots, landscaping, fire sprinklers as well as any common shared areas or services.
There are 4 types of Net leases, these are;
1. Single Net Lease
2. Double Net Lease
3. Triple Net Lease
4. Absolute Triple Net Lease
Single Net Lease: Also known as N lease, the tenant is responsible for paying the base rent and additional pro-rata share of property tax that the building accrues during the tenure of his lease. This amount is dictated by the total amount of building space that is leased by the tenant. The tenant pays additional janitorial and utility service fees.
Double Net Lease: The NN Lease gives the tenant responsibility of paying the base rent and a pro-rate share of property insurance and property taxes. The building’s landlord is in charge of covering all common area maintenance fees and any expenses associated with structural repairs. The tenant however remains responsible for utility expenses and janitorial fees.
Triple Net Lease: The NNN Lease is the most common type of commercial real estate property lease. The tenant pays for all the three net costs. These are insurance, CAMS and property taxes on top of the monthly base rent. Common area utility expenses are usually added onto the total amount payable by the tenant as well as any additional insurance, tax, utility and janitorial services.
The cost estimates are charged to the tenant based on their pro-rate or proportional share. The triple net lease is considered more landlord friendly and tenants are always advised to carefully review the terms of the NNN lease and try to negotiate caps on the amounts that can be raised on an annual basis. The NNN lease is also prone to fluctuating operating expenses that make it quite difficult to predict the business’ expenses.
However, there are some tenant benefits that are associated with this type of lease. One such benefit is transparency since tenants can easily account for what they are paying for. The tenant is therefore able to save on his expenses, a scenario which the landlord isn’t likely to consider undertaking. A triple net lease is also potentially lower that a gross lease as a higher level of responsibility is passed on to the tenant.
Absolute Triple Net Lease: This is a less common type of commercial real estate lease that is quite rigid and more binding that a normal NNN lease. The tenant is responsible for all risks and costs associated with the building during the tenure of his lease agreement. Costs associated with natural disasters, and rent costs for a condemned building are still the responsibility of the tenant.
Modified Gross Lease
The gross lease is considered tenant friendly while the net lease, on the other hand, is more landlord friendly. The modified gross lease is a compromise between these two types of leases. The modified gross lease (alternatively referred to as the modified net lease) is similar to the gross lease in that the tenant pays a lumpsum rent amount that can optionally include any or all of the CAMS, insurance and net property taxes. Janitorial services and utility fees will often be excluded from the rent agreement and the landlord and tenants can negotiate which “nets” will be included in the base monthly rent.
A modified gross lease is popular among tenants since it offers flexibility that will automatically translate into an easier lease agreement. As opposed to the NNN lease, the lease rate does not change for a modified gross lease even if CAM charges, taxes and insurance costs increase. However, if these costs decrease, the savings are passed on to the landlord. Electricity and janitorial services are not covered and as a result, tenants are better placed to control their recurrent expenses.
Summary of Commercial Real Estate Leases
When evaluating your options for commercial property business or office space, it is extremely important to compare your available lease options keeping a keen eye on all expenses and not just the available base rental rates. NNN base rental rates are usually lower but they incur additional expenses to gt the actual monthly payable rent rate.
Rental rates associated with comparable commercial properties tend to even out because of market forces irregardless of the type of lease. Office space in the same area will attract roughly the same amount irrespective of the type of lease agreement. One of the most important rule of commercial real estate leases for the tenant to carefully read the lease agreement and seek clarification on exactly what expenses the tenant will be responsible for. Clarification should also be sought on caps and any additional charges that can be incurred by the tenant.
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Miami Commercial Property News April 20, 2015
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