Miami Commercial Real Estate News, Trends, Observations • Page 85 of 116

Mid-Market Miami-Dade Office Properties Cap Rate Dips Below 6%; Top Buyers, Sellers

Cap Rate for Office Properties from 5,000 to 15,000 square feet in Miami-Dade County for the 10 Years Ending 2015

The capitalization rate (cap rate) for mid-market office properties in Miami-Dade County (5,000 to 10,000 square feet) drifted to just under 6% in the most recent period reported by Costar. As can be seen in the attached chart, cap rates have gyrated around 6% to 7% midpoint, and of late have been in decline since their 2013 peak a couple of points higher.

In recent years, increases in rent and declines in vacancy, combined with stable cap rates, have led to higher prices on many area office properties. Much of these gains, however, has been in class A properties, with many mid-market properties experiencing less rental increases and decease in vacancy.

Top Buyers, Sellers

The top buyers of office properties (listings, trends) in Miami-Dade County from 5,000 to 10,000 square feet per Costar as of February 11, 2016 include: The Related Companies; Infinity Group; IMC Property Management & Maintenance; Mario Scarpetta Gnecco; Jenel Management; Catherine Lorie; MMC Equity Partners; Beachfront Commercial Realty, Inc.; RAS Development, Inc.; MasTec, Inc. Top sellers of such properties include: Canepa U.S. LLC, Century Homebuilders Group, LLC; Mario Scarpetta Gnecco; Adrian Builders Inc.; Irene & Patrick Marie; Landmark Companies; Golden Glades Associates; CREC LLC, Orion Real Estate Group; ACV Properties, Inc.

Chart courtesy of Costar.

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First Quarter 2016 Commercial Real Estate Outlook

National Association of Realtors® (NAR) Commercial Real Estate Outlook for the first quarter of 2016

The National Association of Realtors® (NAR) Commercial Real Estate Outlook for the first quarter of 2016 focuses on market performance large and small commercial property sectors. The report provides an overall view of economic indicators, investment sales of commercial real estate, and commercial property leasing fundamentals.

Some highlights of this quarters reports include:

Rising employment levels drove demand for space across the spectrum of commercial properties.
Vacancies continued to decline in the fourth quarter of 2015, combining with rising rents to improve cash flows.
U.S. macroeconomic momentum declined during the fourth quarter of 2015 as it was buffeted by a global economic slowdown and volatility in the financial markets.
Business investments stalled a touch, and the strong dollar had an impact on net exports. Payroll employment was a bright spot, closing 2015 with a total of 2.7 million net new jobs. This was given a boost by private service industries.

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Donald Trump Sues Five Homeowners Neighboring Trump National Doral

Miami Commercial Real Estate News March 1, 2016 ~ Top Headlines Pertaining to Retail, Multifamily, Office, and Industrial Properties

Miami Beach to Consider Chinese Developer’s Proposal for 18-Story Condo Tower

The Miami Beach Historic Preservation Board (HPB) next week will consider a proposal by a Chinese developer to build an 18-story waterfront condominium project on land it purchased last fall from The Peeples Corp.
The project on a vacant lot at 6747-6757 Collins Ave. proposed by CCCC Miami Beach, a…

As Sales Ebb, Department Stores Dialing Back Downtown Locations – Except in NYC

When Macy & Co. opened on 34th Street in New York City in 1878, The New York Times called it the “Place Where Almost Anything May Be Bought,” a concept that helped define downtown department stores for 19th- and 20th century shoppers. But facing a long-term trend in declining sale…

Trump’s lawyers claim the homeowners are messing with their landscaping Donald Trump is going after five of his neighbors at Trump National Doral Miami, suing them for “destroying” trees that were planted adjacent to their property lines, per Gossip Extra. According to the five lawsuits filed…

Miami Beach to consider four major developments, including condo tower

Miami Beach officials will review four significant development projects, including a condo tower and three hotels.
All four items will be heard by the city’s Historic Preservation Board on March 8.

Developer Contemplates $100 Million Project In Lauderdale Lakes

American Land Ventures is proposing a mixed-use development on a 23-acre site.

Report: Impressive Rent Growth in All Major Florida Office Markets

Cushman & Wakefield reports that tenant demand is driving new construction.

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Mid-Market Miami-Dade Office Property Sales Volume Hits 10-Year High

Ten Year Sales Volume for Mid-Market (5,000 to 10,000 square feet) Office Properties Within Miami-Dade County as of March 2016 | Chart Courtesy of Costar

For office properties in Miami-Dade County from 5,000 to 10,000 square feet, sales volume in 2015, approaching $70 million, hit a 10-year high. This is about 40% higher than the prior year and 80% higher than 2014.

Related Miami-Dade Countr (Miami area):

Office property trends
Office property listings

This was compiled using data from the CoStar Group, which provides in depth analytics for the commercial real estate industry.

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Commercial Property in Zip Code 33129: Year’s Top Buyers, Sellers, Ten Year Sales Volume

Ten Year Sales Volume for Commercial Properties Within Miami-Dade / Miami Area / South Florida Zip Code 33129 as of February 9, 2016 | Chart Courtesy of Costar

For commercial property of all types in Miami’s zip code 33129 the top buyers in the past year as listed by Costar on February 9, 2016, were: Baywood Hotels, Inc.; Elderly Housing Development & Operations Corp.; Pan American Group Inc.; G.A.P. Realty, Inc.; Driftwood Hospitality Management, LLC; Jorge Buitrago; Coral Way The Roads Professional Center LLC; Baptist Health South Florida, Inc.; Eddy Salloum; William Albornoz. These buyers’ total purchase volume of these types of properties ranged from about $6 million to around $14 million.

The top sellers of such properties in this same period were: The United Teachers of Dade; The Carlyle Group; Pan American Group Inc.; Brickell Park View, LLC; Florida Inns Inc.; C.L. Leemon and Linda Leemon; Habitat Group; Kenneth Rosen; James F. Pollack, Esq.; Marvin & Sandra C Tinsley.

Some of the larger sales recording in MLS for commercial property, both improved and vacant land, in the past couple of years (as of 11/21/16) include 1111 SW 13th Street, 2200 SW 3rd Avenue, and 333 SW 30th Road.

This was compiled using data from the CoStar Group, which provides in depth analytics for the commercial real estate industry, and the Miami-Dade MLS.

Also see:

Commercial properties for sales in zip code 33129
33129 Demographic and Economic Data
Top buyers, sellers, and 10 year sales volume for other Miami area zip codes
Google map with zip code 33129 boundary
Informational pages for properties in zip code 33129

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Franklin Street Arranges $9 Million Homestead Retail Center Sale

Miami Commercial Property News February 25, 2016: Edgewater Development Site Lists at $19.75 Million; Office Rents Risking in Miami-Dade and Broward; More…

Edgewater development site on Biscayne hits market: $19.75M

As land sales reach record per-square-foot highs, a redevelopment site in Edgewater has been listed for sale for $19.75 million or about $475 a square foot. The property, at 2699 Biscayne Boulevard, is one of the few remaining large development sites in the Edgewater…

The buyer is aggressively looking for additional commercial real estate investments in South Florida.

Miami’s Four Five-Star Hotels of 2016, Mapped

Which Miami hotels are among the Forbes Travel Guide elite? Forbes Travel Guide released its annual Global Star Ratings, honoring the finest hotels, restaurants, and spas in the world in 2016. They evaluated over 500 criteria with the ratings based on three levels: Five Star, Four Star…

Three Hundred Collins Breaks Ground With 70 Percent Sold

Coming to South of Fifth in 2017 Three Hundred Collins, aptly located on 3rd Street and Collins Avenue in South Beach, broke ground with a whopping 70 percent sold. Only six of 19 units remain in the luxury South-of-Fifth project being developed by JMH Development.

Miami Beach Unveiled Some Funky New Lifeguard Towers

Vibrant and unique, like South Beach Miami Beach revealed four colorful lifeguard towers this week designed by architect William Lane to pad the city’s total to 35 stations, stretching from 87th street down to the southernmost tip at South Pointe. The project began over 20 years ago, according to…

Miami Ranks 449th Among Cities to Raise a Family

Ouch Miami is anything but magical in terms of places to raise a family, according to a recent study by Apartment List. The analysis measured 500 cities across four weighted factors: safety (35%), housing cost (30%), school quality (25%), and child friendliness (10%). Wait, “child friendliness?”

Vote for Your Favorite Proposal for Miami Dade College’s Downtown Site

Which MDC proposal stands out from the rest? Renderings and plans for all four bids have been released in full for Miami Dade college’s heavily desired 2.6-acre site in Downtown Miami near American Airlines Arena at 520 Biscayne Boulevard. The four contenders: Gregg Covin Development/Oppenheim…

Details Of Four Proposals For Miami Dade College’s Downtown Site

Bids contain condo towers as high as 80 stories, hotels with up to 300 rooms, office space, retail and restaurants.

SOBEWFF to bring food, wine – and a wealthy buyer pool

When the South Beach Wine & Food Festival kicks off on Thursday, some of its sponsors are hoping to appeal to wealthy real estate buyers as well as foodies. The festival’s first event, Italian Bites on the Beach, for example, is sponsored by Property…

Miami Worldcenter names CoastalTishman as contractor

The developers of Miami Worldcenter have just announced CoastalTishman as the general contractor on the eve of the project’s official groundbreaking. Construction work has already begun on Worldcenter, though…

Office rents in Miami-Dade and Broward rising: report

Class A office rental rates in Miami-Dade County and Broward each jumped 6.3 percent in 2015, to $41.48 and $33.34, respectively, marking the highest increase among major markets statewide, according to a new report released Wednesday by Cushman…

California investment firm buys Key Largo Hilton from Blackstone

KHP Capital Partners, a California investment manager, just bought the newly renovated Hilton Key Largo from New York’s Blackstone Group. The deal includes a little over 13 acres of waterfront land at 97000 South Overseas Highway, plus the 200-room hotel and its marina…

Miami-Dade home sales take a hit in January: report

It looks like the year-end slowdown for Miami-Dade County’s residential market is creeping into 2016. Existing home sales in the county took a big hit during January amidst rising prices and shifting inventory, according to a new report from the Miami…

Meet the venture-backed startup that helps landlords evict tenants

Smelling blood in the water, venture-based startups like Click Notices are collecting tidy fees to assist landlords in ousting millions of tenants nationwide. Click Notices’ software allows…

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Commercial Property in Zip Code 33133: Year’s Top Buyers, Sellers, Ten Year Sales Volume

Ten Year Sales Volume for Commercial Properties Within Miami-Dade Zip Code 33133 (Miami, Coconut Grove) as of February 5, 2016 | Chart Courtesy of Costar

For commercial property of all types in Miami’s zip code 33133 (Coconut Grove) the top buyers in the past year as listed by Costar on February 5, 2016, were: Terra Group; HCA Holdings; Allegra Holding; Avatar Real Estate Services; Colliers International; Wexford Capital Management; Mast Capital; 13th Floor Investments; HCP. These buyers’ total purchase volume of these types of properties ranged from about $25 million to more than $130 million.

The top sellers of such properties in this same period were: Mercy Hospital; Thor Equities; Coconut Grove Bank; The Rockefeller Group; Miami Parking Authority; Steelbridge Capital; Meek Companies; Ventas; Novacaixiagalicia; The Clarkson Group.

Some of the larger commercial property sales within 33133, both improved and vacant land, that were booked in the Miami-Dade MLS over the prior couple of years were at 2424 Dixie Highway, 3320 37th Avenue, and 2551 Tequesta Lane.

This was compiled using data from the CoStar Group, which provides in depth analytics for the commercial real estate industry, and the Miami-Dade MLS.

Also see:

Commercial properties for sales in zip code 33133
33133 Demographic and Economic Data
Top buyers, sellers, and 10 year sales volume for other Miami area zip codes
Google map with zip code 33133 boundary
Informational pages for properties in zip code 33133

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Mid-Market Miami-Dade Multifamily Properties: Top Buyers, Sellers for the Year

Ten Year Sales Volume for Mid-Market (20 to 50 units) Multifamily Properties Within Miami-Dade County as of January 2016 | Chart Courtesy of Costar

For multifamily properties in Miami-Dade County from 20 to 50 units, the top buyers in the past year as listed by Costar on February 4, 2016, were: Boardwalk Properties FL; Fort Capital Management; Coinco Investment Co.; Two Roads Development; Burke Leighton Asset Management; Boardwalk Properties; Bar Invest Group; Eastview Realty Advisors; Jameston U.S. Immobilien GmbH; Yoel Cynovoch. These buyers’ total purchase volume of these types of properties ranged from about $15 million to more than $120 million.

The top sellers of such properties in this same period were: Bar Invest Group; Surf Club Apartment Cooperative; Paramount Homes; Starr & Edward Porter; Caixa de Aforros de Vigo Ourense; Luis Felipe Martinez; Fifteen Group; Wexford Capital Management; Monocherian Brothers; 1600 Property.

This was compiled using data from the CoStar Group, which provides in depth analytics for the commercial real estate industry.

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The Leveraging Effect of Occupancy/Vacancy on NOI

Drop in Net Operating Income as Vacancy Rate Increases from 0% Given Fixed Operating Expense Ratios

In a prior post, I discussed the potential effects on values as interest rates change, assuming capitalization rates changing in tandem at some ratio. Capitalization rates, however, are not the entire story, not at all. In particular, given that net operating income (NOI) is the numerator in the NOI/price cap rate calculation, as NOI changes, cap rates change. The general concept is that a lower cap rate means a higher price, but to the extent the lower cap rate is from a drop in NOI this is, of course, not the case.

Occupancy and Rental Rate for Retail Properties in Miami-Dade County for the 10 Years Ending 2015

Consider further that higher interest rates have a negative effect on economic activity. Borrowing costs are increased. Interest payments on credit cards and loans are more expensive. Mortgage payments increase, reducing discretionary income. There is an increased incentive to save rather than spend, as higher interest rates make it more attractive to save . Rising interest rates affect both individuals and businesses. Thus, the economy is likely to experience a pullback in consumption and investment. In turn, commercial real estate may experience increased vacancy (decreased occupancy) and a softer rental rate environment. Variability in occupancy and rental rates, and the correlation of them, is evident in the accompanying “Occupancy and Rental Rate for Retail Properties in Miami-Dade County for the 10 Years Ending 2015” chart.

NOI itself is most affected by vacancy rates (or occupancy rates, for the glass half full crowd). To be sure, other expenses may vary, but vacancy/occupancy is the one to watch out for. Further, since most operating expenses are largely fixed, as income drops with decreased occupancy, it decreases NOI almost dollar for dollar. Since NOI is less than 100% of income, this has a leveraging affect, i.e. an increase in vacancy of some percentage causes a drop in NOI that is a greater percentage. This is represented in the chart above which lists drops in NOI as a percentage as vacancy increases from 0% given various fixed operating expense ratios.

Ration of Drop in Net Operating Income to Vacancy Rate Increases from 0% Given Fixed Operating Expense Ratios

In this second chart (above), the ratio of the drop in NOI as a percentage of the increased vacancy is displayed. As can be seen, a property with a 35% fixed expense ratio will experience a drop in income that 154% of the increase in vacancy. It should be noted, however, that this assumes all rents were equal, which of course is never the case.

Affect on NOI Given Fixed Operating Experience Percentage at Various Vacancy Rates vs. Zero Vacancy ~ Assuming Rental Income Change Proportionate to Vacancy

This is all fairly straightforward math, surely highly accessible to anyone involved in commercial real estate, and is nothing new for most. In discourse about commercial property, however, this leverage affect is often overlooked.

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Developer Proposes Mixed-Use Project Near Aventura

Miami Commercial Real Estate News February 23, 2016: Mixed-Used Project Near Aventura Proposed; Akerman Moves to Three Brickell City Centre; More…

The plans call for a seven-story building with 139 apartments, 87,120 square feet of office space, 8,020 square feet of retail and 532 spaces of structured parking.

Akerman Moving Into Swire’s Three Brickell City Centre

Florida’s largest law firm, Akerman LLP, is moving into 110,508 square feet at Three Brickell City Centre in downtown Miami, taking the top seven floors of the 12-story glass building that will help anchor Swire Properties’ $1.05 billion mixed-use project in the Brickell district.

Lennar Purchases 130 Acres in Miami Lakes for $41M

Lennar Corp. purchased 130 acres of land at NW 97th Ave. and NW 154th St. in Miami Lakes, FL from a private owner for $41 million. The site includes two large lakes taking up about 56 acres. Zoned for 929 homes, the land will house single-family homes, villas and townhomes near the proposed…

Trophy Brickell Office Leasing Assigned

Avison Young will establish a satellite office at the building. The post Avison Young Secures Trophy Brickell Office Leasing Assignment appeared first on CRE-sources.

Gap Forwarding Heads to Flagler Station

Gap Forwarding signed a long term lease for 32,000 square feet and will be relocating from its current headquarters in Doral. The new corporate and distribution center for Gap Forwarding, Inc. is being constructed at Flagler Station III, the commercial development at 11411 NW 107th St. in Miami…

Parkway Completes Sale of 80% Interest in Courvoisier Centre

Courvoisier Centre, a 343,000-square-foot office building located at 501 and 601 Brickell Key Dr. in Miami, FL, sold at a gross asset value of $175 million. Retaining 20-percent interest in the asset, Parkway Properties will continue with their leasing and property management services at the…

Vacant Hialeah Industrial Warehouse Gets Purchased And Leased On Same Day

Sharpe Properties is please to announce the purchase of a 3,600 square foot street-level industrial warehouse property by SP33 Warehouse, LLC (SP33 Warehouse). With the help of Sharpe Properties, the new owner of the vacant warehouse was also able to have it fully leased out to a tenant on the…

New Grocery Supermarket Not So Okey-Dokey

How can an unknown and non-existent grocery company quickly open up stores in South Florida, and directly compete for market share in the highly competitive and powerful grocery and supermarket industry? Okey Dokey Grocery Market, had grand plans to quickly explode upon the South Florida scene…

Grand Opening of Dollar General in Miami, Florida

The Miller Heights Shopping Center is pleased to now welcome Dollar General as an anchor tenant within its South Florida retail shopping center. Dollar General will be celebrating its grand opening this Saturday, March 30, 2013, about one month after the shopping center completed a multi-million…

Company Logo With Front-Lit LED Channel Letters

New Signage at the Miller Heights Shopping CenterNew LED channel letter tenant signage is currently being installed at the Miller Heights Shopping Center, located at 9375 SW 56th Street, Miami, Florida 33165. In addition to the tenants receiving LED reverse channel letter signage for each…

5 Steps to Securing a Mortgage For Rental Properties

Becoming a real estate investor makes it possible for you to benefit from semi-passive income coming in on a regular basis. While real estate investment can be pretty lucrative if done correctly, there are some hurdles that you’ll have to overcome before you can get involved.One of the most difficult…

Downtown Miami Development Is ‘Hot’

A generation of development and revitalization is setting the stage for a destination: urban Miami.

Chef Cindy Hutson to open Zest in downtown Miami

South Florida chef and restaurateur Cindy Hutson will open a new restaurant at the Southeast Financial Center in downtown Miami. Hutson and partner Delius Shirley will open Zest in a 5,000-square-foot space at the office complex, according to a spokesperson…

Video: Streets by VICE ~ 18 minutes of “could this city be any cooler?”

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Commercial Property in Zip Code 33145: Year’s Top Buyers, Sellers, Ten Year Sales Volume

Ten Year Sales Volume for Commercial Properties Within Miami-Dade / Miami Area / South Florida Zip Code 33145 as of February 8, 2016 | Chart Courtesy of Costar

For commercial property of all types in Miami’s zip code 33145 the top buyers in the past year as listed by Costar on February 8, 2016, were: Heitman LLC; Monogram Residential Trust; Arnold Wax; AWE Talisman; Strategic Properties Group, Inc.; Nets Group Ltd; Mill Creek Residential Trust LLC; Strategic Properties; Greystone & Co. Inc.; Alta Developers. These buyers’ total purchase volume of these types of properties ranged from under $10 million to about $90 million.

The top sellers of such properties in this same period were: AWE Talisman; Greystone & Co. Inc.; Alta Developers; Toni Alam; Roberto Isaias; Demetree Real Estate Services, Inc.; Windsor Capital Corporation; Key Realty Advisors, Inc; Orion Real Estate Group; Barry M. Brant.

Some of the larger commercial transactions in zip code 33145 in the past couple of years (as of 11/21/16), both improved and commercial land, in the Miami-Dade MLS include 1801 SW 22nd Street, 501 SW 22nd Street, 1790 SW 22nd Street, 3649 SW 26th Street, 2151 SW 27th Avenue, and 2205 SW 23rd Avenue.

This was compiled using data from the CoStar Group, which provides in depth analytics for the commercial real estate industry, and the Miami-Dade MLS.

Also see:

Commercial properties for sales in zip code 33145
33145 Demographic and Economic Data
Top buyers, sellers, and 10 year sales volume for other Miami area zip codes
Google map with zip code 33145 boundary
Informational pages for properties in zip code 33145

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Video: Performance of the 2015 Industrial Market

Larry Callahan and Peter Anderson join host Michael Bull to discuss how the industrial market and Pattillo Industrial performed in 2015, what types of industries and users are most active right now and what tends to be important to tenants today. South Florida investors may also wish to view our industrial property sales and leasing trend charts for Miami area (Miami-Dade county) cities, including: Coral Gables; Doral; Hialeah; Homestead; Miami; Miami Beach; Miami Lakes; Miami Springs; North Miami; North Miami Beach; Pinecrest.

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Mid-Market Miami-Dade Retail Properties Cap Rate Dips ~ Presumably Due to Embedded Rent Increases; Top Buyers, Sellers

Miami Commercial Property News February 18, 2016 ~ Top Headlines Pertaining to Retail, Multifamily, Office, and Industrial Properties

Cap Rate for Retail Properties from 5,000 to 15,000 square feet in Miami-Dade County for the 10 Years Ending 2015
The capitalization rate (cap rate) for mid-market retail properties in Miami-Dade County (5,000 to 15,000 square feet) drifted to under 4% in the most recent period reported by…

California-Based CRE Firm Looking To Enter Miami Market

The firm has more than 850 commercial real estate brokers across the nation and wants to find partners for a Miami office. The post California-Based CRE Firm Looking To Enter Miami Market appeared…

Foundry Commercial Expands Team, Continues Growth In South Florida

The addition of notable industry talent brings new opportunities for the commercial real estate firm. The post Foundry Commercial Expands Team, Continues Growth In South Florida appeared…

Buyer Secured For Downtown Miami Office Tower

The sale yielded a 60% gain for the seller in less than two years. The post Marcus & Millichap Team Mandel+Partners Secures Buyer For Downtown Miami Office Tower appeared first on…

SVN South CRE Advisors Adds Director of Retail

Matt Rotolante has expanded his team to keep up with Miami’s in-demand retail market. The post SVN South CRE Advisors Adds Director of Retail appeared…

New Renderings of Miami Worldcenter’s High Street Retail Promenade

Weeks after Miami Worldcenter announced they were slashing the enclosed mall portion of the multi-billion dollar project in favor of high street retail, Miami Worldcenter Associates has released renderings of what that new promenade…

Average Sales Volume, Prices Up: 2015 Q4 Commercial Real Estate Market Survey

The latest survey of the national CRE market was published late last week. The key takeaways from the most recent survey sampling randomly from nearly 50,000 REALTORSⓇ holding an interest in CRE: Sixty-six percent of commercial REALTORS® closed a sale. Sales volume rose 7.4 percent…

AutoZone Purchases Retail Land ~ Valued At $700,000

NAI Miami has been AutoZone’s South Florida real estate representative since 2008 and has closed 15 transactions with 6 more currently pending closing.

Shared Office Space – The “Uber” of Commercial Real Estate?

The new sharing economy is changing the way business has traditionally been done across industries. The commercial real estate industry is no exception. Just like Uber and Lyft have disrupted the hired car industry and Airbnb is upsetting the hospitality industry, the trend of coworking, or shared…

Invesco buys majority share of SoFla industrial portfolio: $98M

Invesco Advisers just paid $98 million to the Easton Group for the majority interest of a substantial South Florida industrial portfolio. The deal closed Tuesday, attorneys Danielle Gonzalez…

Single-family homes, townhomes planned for Pinecrest

GC3 Development and Bindor Development are spurning condominiums and zeroing in on single-family homes and townhomes, with two projects underway in Pinecrest. Pinecrest Place, a luxury home development, has recently…

Underline linear park scores $75,000 for “Brickell backyard”

Pinnacle Housing Group, along with 13th Floor Investments and the Adler Group, have donated a combined $75,000 to the Underline, a planned 10-mile long linear park and trail in Miami-Dade County. The donations will be used for the…

Canvas signs off on $70M loan, plans groundbreaking event

Canvas, the condominium tower planned for Miami’s Arts & Entertainment District, has signed off on its $70 million construction loan from Bank of the Ozarks, The Real Deal has learned. NR Investments, developers of the 513-unit project, signed off on the loan on Tuesday…

Marriott pays $23.5M for South Beach hotel, plans renovation

The Edgewater Hotel in South Beach is about to get a facelift and new name now that it’s been sold for $23.5 million to Marriott International’s timeshare division. Marriott Vacation Club bought the 1930s-era building and its 49 suites, located…

Midtown, Wynwood and the Design District: all grown up?

As the Design District, Midtown and Wynwood continue to evolve, the neighborhoods could replicate the synergy of Greenwich Village, Chelsea, the High Line and the Meatpacking District in Manhattan, according to some big…

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Mid-Market Miami-Dade Retail Properties Cap Rate Dips ~ Presumably Due to Embedded Rent Increases; Top Buyers, Sellers

Cap Rate for Retail Properties from 5,000 to 15,000 square feet in Miami-Dade County for the 10 Years Ending 2015

The capitalization rate (cap rate) for mid-market retail properties in Miami-Dade County (5,000 to 15,000 square feet) drifted to under 4% in the most recent period reported by Costar. As can be seen in the attached chart, cap rates have been relatively consistent over the years, generally moving up and down around a 6.5% or so midpoint. The precipitous drop of late likely has to do with embedded rent increases, i.e. rents lower than the market as rent levels have increased in the area.

In recent years, increases in rent and declines in vacancy, combined with stable cap rates, have led to considerably higher prices on many area retail properties. However, changes in retail, evidenced by mass store closured by Wal-Mart, Sears, Best Buy, and others, continue to give investors pause. Smaller properties, however, may be less affected as their tenant mix is more specialized and local, and thus less affected by competition from only retailers.

Top buyers of retail properties (listings) in Miami-Dade County from 5,000 to 15,000 square feet, per Costar as of February 11, 2016, include: Ponte Gadea USA, Inc.; RedSky Capital LLC; Tristar Capital; Safra National Bank of New York; JC Capital Partners; Jamestown U.S. Immoblien GmbH; RFR Realty LLC; Thor Equities; Centurion Realty LLC; Danny Levy. Top sellers of such properties in the past year include: Fryd Properties; Michael Comras; Thor Equities; Atlas Associates Realty, Inc.; ADR Partners, Inc.; Gadinsky Real Estate, LLC; Phillip Buhler; Ronald Felton; 818 Lincon Corp.

Chart courtesy of Costar.

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Video: Streets by VICE ~ 18 minutes of “could this city be any cooler?”

For anyone involved in commercial real estate in Miami, and for that matter anyone interested in Miami, this video is must see material. Created by HBO’s VICE, the episode travels along Biscayne Boulevard, the main artery to the city stretching north to south. The show stops in neighborhoods it bills as being as marvelous and strange as the city itself.

HBO’s Vice Does a Piece Highlighting Miami’s Vibrancy

The show spends time discussing developer Avra Jain, Club 11, the last surviving cocaine cowboy Micky Munday, and Media Noches, and they delve into Miami’s rather checkered past as perhaps the fuel for its vibrancy and growth today. Watch it.

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