Commercial Property in Zip Code 33144: 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 33144 as of February 18, 2016 | Chart Courtesy of Costar

Ten Year Sales Volume for Commercial Properties Within Miami-Dade / Miami Area / South Florida Zip Code 33144 as of February 18, 2016 | Chart Courtesy of Costar

For commercial property of all types in Miami’s zip code 33144 the top buyers in the past year as listed by Costar on February 18, 2016, were: Estate Investments Group; Eunice Singer De Russoniello; Steve Halegua, P.A.; Living Care Solutions; Rodolfo Dumenigo; Mario A. Lamar, P.A.; CGI Companies, Inc.; Orion Real Estate Group; Brandon Partners; Christian Garces.   These buyers’ total purchase volume of these types of properties ranged from around $4 million to a touch over $10 million.

The top sellers of such properties in this same period were: TW Plaza I, LLC; Prix Investment Corp; Windsor Capital Corporation; Orlando Valdes; Dr. Angel Veloso, M.C., P.A.; Tamiami Automotive Group; Fountain Star Investments Group, Inc.; BB&T; Christian Garces; Alejandro Sanchez.

Some of the larger commercial property sales, both improved and vacant land, that were recorded in MLS of late (3 years ending 12/7/16) include 6772 West Flagler Street61 Grand Canal Drive780 Tamiami Canal Road6620 West Flagler Street, and 7300 West Flagler Street.

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

Also see:

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March 9, 2016

Miami Commercial Real Estate News March 8, 2016: Twin Towers Proposed for Downtown Miami; Sports Authority Goes Chapter 11, Closing Stores; More…

New York firm proposes twin towers on downtown Miami site

A New York firm has just put forward plans to build two 43-story residential towers on a downtown Miami parking lot owned by Russell Galbut and Andrew Resnick.  As first reported by the Next Miami, the proposal includes two residential towers with ground-floor…

200 Building Sold for $33.9M

Brickman Associates acquired the 200 Building at 200 SE 1st St. in Miami, FL from Integra Real Estate LLC for $33.85 million, or about $239 per square foot.  The 12-story, 141,687-square-foot office building was building in 1970 and renovated in 1998 in the Downtown Miami submarket.  Benjamin…

U.S. Movie Theater Chains Consolidating Almost as Fast as CRE Brokerage Firms

In a bold move to consolidate ownership of U.S. movie theaters, AMC Entertainment announced an agreement to acquire Georgia-based Carmike Cinemas to create the largest movie theater chain in the U.S. controlling more than 600 theaters and 8,380 screens.  Under the terms of the agreement, AMC will …

$569 Million Florida Portfolio Sale Underscores Keen Investor Appetite for Seniors Housing

Last year set records for investment and M&A activity in the seniors housing sector, and a large joint venture portfolio acquisition by Welltower Inc. and the Canada Pension Plan Investment Board (CPPIB) suggests that deal activity shows no sign of letting up in 2016.

Leasing Assigned at Four Seasons Tower in Miami

Avison Young has been awarded the office leasing assignment for Four Seasons Tower located at 1441 Brickell Ave. in Miami, FL.  The 250,000-square-foot office brings Avison’s office leasing portfolio in the past three years to 25 million square feet in Florida.  The Avison Young leasing…

Inside Look at 121 Marina, Ocean Reef’s New Luxury Condo Development

Units will start at $4 million 121 Marina will be the first new luxury residential development at Ocean Reef in nearly two decades after Blue Jay Capital founder Eric Soulavy announced the project will begin construction this spring.
The Key Largo development will have 29 residences, of three-bedroom…

Photos and Video From Miami Worldcenter’s Groundbreaking

One of Miami’s most hyped projects is coming to life The highly anticipated and ever-changing Miami Worldcenter and Paramount Miami Worldcenter officially broke ground yesterday in Downtown Miami amid a swarm of media and high-profile guests like Mayor Carlos Gimenez and Miami Heat forward Udonis Haslem…

Sports Authority Goes Chapter 11, To Close 140 Stores

Englewood, CO-based sporting goods chain Sports Authority has ushered in the first major bankruptcy in the US 2016 retail sector. After news in January of the chain missing a $20 million debt coupon payment on a underlying debt reported at the time at $1 billion, today the company announced…

The week in luxury: A map of Miami-Dade’s priciest condo sales

Miami-Dade County saw a condo market boost at the end of February, with more than $70 million worth of closings recorded last week and a handful of multimillion-dollar sales.  The week’s most expensive deal was the $5.5 million purchase of unit 1405 at the newly built Edition Residences in Miami…

Sneak peek: New renderings of Aurora in Sunny Isles Beach

Verzasca has released new renderings of its Sunny Isles Beach condominium, Aurora.  Bay Harbor Islands-based Verzasca launched sales for the 61-unit mixed-use tower in the fall and has reached the 30 percent sales…

Blackstone’s Jonathan Gray bearish on CRE

Jonathan Gray, the Blackstone Group’s head of real estate, recently joined the chorus of investors and analysts warning of an impending slowdown in the commercial property market.  While the national multifamily market remains strong, global…

Circle S Farm in Southwest Ranches back on the market: $14M

A 48-acre estate once home to Kentucky Derby winner Spendabuck will hit the market soon for $14 million, about $6 million less than its auction price last summer.  Circle S Farm, a premier equestrian training and breeding…

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March 8, 2016

Commercial Property in Zip Code 33126: 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 33126 as of March 3, 2016 | Chart Courtesy of Costar

Ten Year Sales Volume for Commercial Properties Within Miami-Dade / Miami Area / South Florida Zip Code 33126 as of March 3, 2016 | Chart Courtesy of Costar

For commercial property of all types in Miami’s zip code 33126 the top buyers in the past year as listed by Costar on March 2, 2016, were: Hines; NorthStar Realty Finance Corp; CBRE Global Investors; Ashford Hospitality Trust, Inc.; Brookfield Asset Management, Inc.; Franklin Street Properties Corporation; Carter USA; DRA Advisors, LLC; Noble Investment Group; The Summit Group, Inc. These buyers’ total purchase volume of these types of properties ranged from somewhat over $20 million to more than $150 million.

The top sellers of such properties in this same period were: Brookfield Asset Management, Inc.; Hines; CNL Hotels & Resorts, Inc.; Host Hotels & Resorts, L.P.; Hyatt Hotels Corporation; Metro Pavia Health System; MetLife, Inc.; Noble Investment Group; Courtelis Company; Baywood Hotels, Inc.

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

Also see:

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March 7, 2016

Miami Plays Prominently in PWC 2016 Emerging Trends in Real Estate Report

PWC / PriceWaterhouse Coopers Emerging Trends in Real Estate® 2016 United States & Canada

PWC / PriceWaterhouse Coopers Emerging Trends in Real Estate® 2016 United States & Canada

PWC, also known as PriceWaterhouseCoopers, has published is 2016 Emerging Trends in Real Estate® report, covering commercial real estate of all types in the United States and Canada.  Miami is mentioned throughout the report in many of the tables and charts as well as in the text of the report.

Below are some excepts specific to Miami area commercial property:

A REIT executive with assets across the Sun Belt remarked, “We are looking for good growth, good tenant mix, rents moving upward in markets like Charlotte, Atlanta, Miami, Austin, and Phoenix.”

Notwithstanding the geographic spread of offshore investment, the “salty six” still get the lion’s share of inbound capital flows. From New York to Los Angeles, as well as in other coastal markets from Seattle to Miami, international investors know and covet U.S. cities with air and sea ports.

Florida’s Resurgence Continues: In last year’s survey, Miami made it back into the top 20. This year, the entire state of Florida is being viewed in a very positive light.

Miami (19). Miami remains in the top 20 this year, and the outlook from survey respondents and interviewees alike seems to be more optimistic. Interviewees cited the potential for continued growth in the Miami economy along with comparatively strong supply.

The retail sector has the strongest outlook in the Miami market. Retail is seen as benefiting from good population and income growth as well as the strong tourism component in the market. It remains to be seen if the strong dollar and an economic slowdown in Latin America will be a headwind to Miami’s continued improvement. Local market participants feel very good about the local economy in Miami and rate overall prospects as good to excellent. If an area of concern exists, it is one of success: the lowest-rated component of the local market t is the availability of development opportunities.

Los Angeles, Chicago, D.C., San Francisco, Miami, Dallas, and Austin also are target markets for coworking.

The average local market outlook score for the South region is the second highest for all four U.S. regions, trailing only the West region. The markets with the top local outlook scores for 2016 are Dallas/Fort Worth, Austin, Charleston, Nashville, Miami, Raleigh/Durham, and Palm Beach.

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March 3, 2016

Miami Commercial Property News March 3, 2016: Beckham and Miami-Dade Disagree re Parking at Stadium; $1.8 Billion Seminole Expansion in Jeopardy; Courthouse Tower Sells for $28 Million; More…

Beckham and Miami-Dade at odds over parking at stadium

David Beckham’s plans to build a soccer stadium in Miami have reportedly hit yet another roadblock: parking.
The soccer star and his development group Miami Beckham United missed their February deadline to close on the purchase of Miami-Dade County…

Seminole’s $1.8B expansion plan in jeopardy after Senate kerfuffle

The proposed guitar-shaped hotel that would be built in the Seminole Tribe’s Hollywood entertainment complex
The Seminole Tribe of Florida’s plan to spend $1.8 billion on expanding their gaming facilities — including the construction of a massive guitar-shaped hotel in Hollywood…

Brickman buys Courthouse Tower in downtown Miami: $28M

New York-based Brickman has made its second commercial real estate purchase in downtown Miami with the $27.5 million acquisition of the Courthouse Tower.  In February, Brickman paid about $34 million for the newly renovated and repositioned 200 Southeast First building.

Jury Awards $17.5 Million For Real Estate Fraud By Property Managers

The pair worked for limited partnerships set up to pool money from 1,800 Germans and invest it in U.S. real estate.

Miami Comically Ranked Among the ‘Worst Places to Live’ in the USA

93rd? What?  The winterless wonderland of Miami was ranked among the worst places to live in the United States, according to a recent study by U.S. News and World Report, with the Magic City ranking an unfathomable 93rd out of the 100 most populous cities.  Behind Cleveland.  Behind Detroit.  Behind Day…

Design Board Approves 1824 Alton on Miami Beach

More Construction is coming to Sunset Harbor While Sunset Harbor continues to undergo major reconstructive surgery to its roads and buildings another project has been approved by the Miami Beach Design Review Board.
The four-story commercial project at 1824 Alton Road was been unanimously approved…

The Langford Hotel Opens in Downtown Miami on March 14

With a new restaurant in tow by The Pubbelly Boys The Langford Hotel is set to open in Downtown Miami on March 14 several months after its planned opening.  The 126-room boutique hotel located a few blocks west of Biscayne Boulevard was developed by Stambul in conjunction with Trust Hospitality and…

Mayor ‘Skeptical’ of Miami Beckham United’s Parking Plans

Does David Beckham need to add a parking garage? David Beckham and the Miami Beckham United group are still seeking an additional partner while planning to wrap everything up by June before an MLS vote of approval, but there’s one item still lurking: parking.  With no garage planned and the closest…

This Map Shows When Rising Sea Level Will Affect Your Miami Condo

Beware owners at the Floridian, Paramount Bay, and the Mutiny Which Miami condos are most at risk of flooding and destruction caused by rising sea level?  Our friends at E Miami Condos created a map to visualize how specific condos will be hit most based on increases of two feet, three feet, and four…

If You Build It, Will They Come?

I have been up to my eyeballs in construction issues lately, so I wanted to share some trends I am seeing:
Construction costs continue to escalate sharply. Workers and materials continue to demand a premium which is driving costs upwards. Traffic, demand and logistics headaches have caused top…

What’s Next for Miami Real Estate?

Last week was the CREW Miami’s 19th Economic Forecast by NYU economist Hugh Kelley. I have written frequently about Hugh and his predictions. I always find his presentation insightful and this year was right on the mark. This year he spoke about the five basic forms of economic change and…

What’s In Your Office Lease?

It’s the start of a new year, so I would suggest that it’s time to pull out your lease file and run a quick lease audit.  Here are a few suggestions of things you should know about your lease: When does it expire?  You should begin your renewal process at least 12 months prior…

Danger Zone Ahead

Tenants need to be aware of the current office trends because the pendulum has swung to the landlords and it is going to hang there for another year or two. My thoughts were confirmed as I listened to a webinar last week on the Office Market from a national perspective.  It is really interesting to…

Relocation Clauses

Oftentimes tenants overlook the Relocation Clause when they are negotiating their lease. This isn’t a good strategy these days. As office occupancy continues to improve, landlords are using the relocation clause more frequently to accommodate new or growing tenants to the dismay of their…

Off-Beat Office Design Ideas

Silicon Valley is the nation’s trendsetter in many ways. Not only do they introduce new technology seemingly every week, but they have enabled us to embrace tele-commuting, foster collaboration and turn every day into casual day. I just read a couple of great articles about companies sharing…

Wild Ride for Office Landlords

That was the theme for the CIASF Office Report today. I agree but I also want to add that the tenants are sitting right next to landlords on this rollercoaster. Here were three statistics that stuck out to me: 1) 75% of the Class A office buildings in the CBD (meaning Downtown and Brickell) are…

Negotiation Tactics

On Friday, I had a landlord, in front of some of my peers, slam me with the best backhanded compliment ever. He was graciously asking if my daughter had decided her medical residency specialty and I said that it would be surgical – she likes to cut people open. He replied, “Just like her…

Miami’s Top 2Q2014 Leases

It is a busy time in commercial real estate these days. The investment sales brokers are very busy and leasing activity is also brisk. Demand has been strong for a full range of sizes from Miami’s average square footage which is about 3,000 sq ft plus quite a few tenants over 50,000 sq ft.

If You Build It, Will They Come?

I have been up to my eyeballs in construction issues lately, so I wanted to share some trends I am seeing:
Construction costs continue to escalate sharply. Workers and materials continue to demand a premium which is driving costs upwards. Traffic, demand and logistics headaches have caused top…

On the scene at One Park Grove launch

Terra Group and the Related Group celebrated the launch of One Park Grove, the third and final Park Grove tower.
The developers hosted a talk with designer Will Meyer and restaurateur Michael Schwartz who will…

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…

Want to get around the FinCEN rules? There’s a class for that

The federal government’s tracking of secretive cash deals for pricey Miami real estate began Tuesday, and the question on Realtors’ minds has been “How does this affect me?”  Not as deeply as you might think, real estate attorney Russell…

NAR Releases Q1 2016 Commercial Real Estate Outlook

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…

Miami Beach’s West Avenue residents weigh in on convention hotel

Proponents and opponents of the proposed Miami Beach convention hotel voiced their opinions Tuesday night, as the proposed 288-foot-tall hotel was debated during a packed meeting of the West Avenue Neighborhood Association (WAvNA).  Residents also heard…

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March 3, 2016

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

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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March 2, 2016

First Quarter 2016 Commercial Real Estate Outlook

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

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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March 1, 2016

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

zy01aMiami 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…

Donald Trump Sues Five Homeowners Neighboring Trump National Doral

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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March 1, 2016

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

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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March 1, 2016

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

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:

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February 29, 2016

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…

Franklin Street Arranges $9 Million Homestead Retail Center Sale

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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February 25, 2016

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

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:

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February 25, 2016

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

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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February 24, 2016

The Leveraging Effect of Occupancy/Vacancy on NOI

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

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

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

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

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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February 24, 2016

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

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New Grocery Supermarket Not So Okey-Dokey

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Company Logo With Front-Lit LED Channel Letters

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February 23, 2016

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

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:

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February 22, 2016