2019 was a records year in many ways for Florida’s CRE market, especially in South Florida commercial real estate. New, major developments broke ground and finished in several locations. Meanwhile, domestic and international investors contributed to the market, and overall the financial data in Florida’s CRE is positive. Analysts continue their bullish outlook on the commercial real estate market here with positive predictions in the future for investors and CRE companies alike.
We’ve compiled some of the commercial real estate news highlights and attention-grabbing headlines around Florida and nationwide to shed some light on the current state of the market. This update for Q4 2019 includes: top South Florida shopping center transactions, predictions for South Florida CRE in 2020, Miami’s tourism boom in 2019, and starting development on the tallest tower in Florida.
Florida Commercial Real Estate News – Q4 2019
The American Dream megamall and and entertainment complex will be the largest shopping complex in North America. It is a massive project that has been in the making for many years already.
The Miami Herald posted the Top-25 South Florida Shopping Center Transactions list for 2019. The top transaction this year, Doral Plaza Shopping Center, sold for $70M, and there are several major transactions in the tens of millions of dollar. This list highlights the state of the retail real estate market in South Florida.
Several financial and real estate experts in Florida provided their insights regarding where the market is heading in 2020. The overall zeitgeist is upbeat with some cause for caution regarding the upcoming year and its potential developments.
There’s a delay with the stadium in the latest development of the ongoing saga with Inter Miami, the new MLS expansion team headed by David Beckham. It’s been a long period of back-and-forth between David Beckham’s constituents and the Miami City Commission over various details with the stadium’s location and specs.
Bekir Okan is bullish about his first project on US soil. His sights are set on developing the tallest tower in Florida, which will be 70 stories tall. The project is set to be completed by 2024.
Miami’s hospitality market is booming, with tourism records being shattered across the board. In 2019, 16.5 overnight visitors came with an additional 6.8 million day-trippers. This is great news for the hospitality industry, retail, and other sectors that are fueled by tourism.
The acoustic six-string Guitar Hotel is the new $1.5 billion expansion of the Seminole Hard Rock Hotel & Casino in Hollywood, FL. The hotel expansion has an on-site concert venue than can hold 7K people and serve multiple uses. The guitar-shaped hotel’s completion was set in time for the upcoming Super Bowl to be played in Miami.
MMG Equity Partners has acquired Centre at Cutler Bay, a 127,072 sf mixed-use office/retail shopping center located 18901 SW 106 Ave, in Cutler Bay, FL, for $16,000,000 or $126 psf. Bank United provided the Buyer with an $11,200,000, fixed, 10-year acquisition loan.
Spirit Airlines is investing in the new site for their headquarters in Dania Beach, Florida. The headquarters building will be 500,000 square feet and will have space for over 1,000 employees.
Melo Group purchased a 68,400 square foot space in Downtown Miami. The project will have up t0 800 apartment units and retail space at street-level.
The industrial facility in Deerfield Beach sold for $2.8M ($183 / square foot). It is the highest negotiated price for an industrial site in Newport Center. Newport Center is a massive, master-planned professional business park. The business park has several notable businesses on site, including: JPMorgan Chase, Quest Diagnostics, UM Sylvester, and others.
MMG Equity Partners has acquired 5850 Sunset Drive, a 7,312 sf historic freestanding building located at the intersection of Sunset Drive and 58th Avenue in downtown South Miami, FL, for $3,900,000 or $533 psf.
MMG Equity Partners expands their development platform with the hiring of construction management veteran Emmanuel Balian for the role of Director of Construction. Emmanuel previously worked for Prime Group US as the Area Project Manager for South Miami-Dade and Monroe counties.
Florida Commercial Real Estate News – Q3 2019
The update for Q3 2019 includes: why Miami’s retail CRE market is #1 in the nation, a 3-story Publix grocery store development on the waterfront, preparation for the next potential hurricane hit in Miami, and new property acquisitions / developments in the state.
Miami’s retail rent grew ~2% between Q1 and Q2 2019. This tops the nation for retail rent growth compared to all markets, with the current asking price at an average of nearly $37 / square foot. Nearly 460,000 square feet of retail space was leased in this time, with the average sales price of retail space getting to $355 / SF.
The new courthouse is set for construction on Flagler Street next to the current courthouse for the Eleventh Judicial Court of Florida. The project will be over 600K square feet and serve as the primary space for the Clerk of Courts and other court organizations / agencies.
InvenTrust Properties Corp acquired Southern Palm Crossing, a Costco-anchored shopping center in Royal Palm Beach, Florida. The shopping center is 346,200 square feet. InvenTrust is investing more in retail properties recently with another Whole Foods-anchored shopping center in Texas acquired for $36M in the same month.
In order to further cement their presence in the e-commerce market, Blackstone attained 60 million square feet of warehouse properties from Colony Capital. The portfolio includes 465 warehouses in Florida, California, Texas, Georgia, and New Jersey.
TransAmerican Development Corp is moving the ball for a new Publix Market proposed for 3100 S Ocean Drive in Hollywood, Florida. The plan is to have a three-story building as the grocery store on the waterfront.
An in depth look at the commercial real estate insurance market reveals where rates are going, and how it will affect CRE owners and investors. The fact of the matter is, these storms are a potential threat, and it’s not so much a matter of if, but when they will land. Due to this, it is important to be aware of the CRE insurance policies.
The property at 11460 Pines Blvd is a retail center with Best Buy, Bed Bath & Beyond, and Party City. The center was acquired by Raanan Katz, a minority owner of the Miami Heat, which is an affiliate of RK Centers.
Gatsby Enterprises, a New York-based CRE outfit, purchased the office property at 800 Brickell for $126 million. This is set to be the first purchase of many for Gatsby Enterprises in Florida.
Architect, Meyer Davis, is taking the reigns on designing the new luxury multifamily / residential project for Terra. This loan signifies one of the largest loans in South Florida for 2019, with a $300M loan in Brickell and a $225M loan for another project in Boca Raton topping it a bit earlier this year.
The Miami Herald provides a list of the most recent tenants and office leases signed in Coconut Grove. The tenants and deals illustrate a boom in the office sector and shows how the real estate their is at a premium currently.
Florida Commercial Real Estate News – Q2 2019
Florida’s CRE market currently ranks 5th nationwide for development currently only behind Texas, New York, California, and Tennessee. In 2018, commercial real estate projects contributed $20 billion into the state and supported 160K+ jobs.
MMG Equity Partners Republishes List of Reasons Why South Florida Commercial Real Estate Is One of the Hottest Markets
Currently Florida site at #2 with fiscal stability and #9 in economy overall nationwide, creating a solid foundation for investors to generate positive gains in The Sunshine State. MMG breaks down 9 reasons why South Florida CRE continues to be a land of opportunity.
The American Dream Miami was presented 3 years ago, and now work begins on one of the fundamental pieces of its infrastructure. Construction of the new access route to American Dream Miami is contingent on the bids that are set to be proposed this month. Meanwhile other important pieces are being put into place for this massive, new commercial retail site.
BH3, a leading Florida & New York real estate development firm proposed a new retail project for the Miami Design District, at 3801 N Miami Ave. The 9-story building will have 86,000 square feet and act as a retail showroom for various retailers in the area.
Crocker Partners & Greenfield Partners sold Northbridge Centre in downtown West Palm Beach. The 294K square foot tower is more commonly known as the “Darth Vader Building” to locals in WPB. The Class-A office building was purchased by Vanderbilt Office Properties and C-III Capital Partners.
The owners of Bal Harbour Shops secured $550 million to finance the development of an additional 300K square feet to add to the current 463K square foot retail center. The expansion will be anchored by a 57K+ square foot Barneys New York store.
Marcus & Millichap announced the sale of the Riverbend Marketplace Phase II for $38.5 million. The 103K+ square foot shopping center in Fort Lauderdale is anchored by Walmart’s first Supercenter in Fort Lauderdale.
The proposed magnetic train would connect Miami International Airport to Miami Beach, which is a separate city currently connected by several causeways that cross Biscayne Bay. The project has several backers as well as critics who believe the plan would be far too costly for the benefits.
4 floors of Miami’s Southeast Financial Center will now be occupied by WeWork, the coworking company that has disrupted office CRE markets around the world. This will bring the total presence of the company to 750K+ square feet around Miami.
Menin Development plans to build a 141-room hotel in downtown Delray Beach. The $72 million loan was funded by Madison Realty Capital for a 24-month construction loan with extension options.
Florida Commercial Real Estate News – Q1 2019
Bisnow.com provides a breakdown of predictions for this coming year, including: market consolidation, new technologies in CRE, submarkets that will thrive, the scooter craze, and sustainability.
MMG Equity Partners joint venture with Global Fund Investments sold Whitworth Farms for $19.35 million in February 2019. Whitworth Farms is an 88,424 sf Publix-anchored retail at Hagen Ranch Road and Whitworth Parkway in Boynton Beach, FL.
Grocery companies were responsible for opening nearly 17M square feet of space nationwide. In Florida this trend was led by Publix, which is rapidly expanding in the region. Around the country, Aldi (a German grocer) accounted over 15% of the total square footage added by grocery stores.
Kaufman Lynn Constructions begins phase 1 on Plantation Walk project 8 miles west of Fort Lauderdale. The first phase will have a 7-story building featuring 63,000 sq ft of retail space, 12,000 sq ft of amenity space, and 171 multifamily units. The initial phase of the project is set to be complete in Q2 2020.
GlobeSt.com covers specific market factors that are contributing to South Florida’s growing demand with both domestic and international investors in an interview with an industry expert. They also discuss what to expect in 2019.
The Magic City Innovation District, a massive residential and commercial real estate project proposed for Little Haiti moved one step closer to complete approval by passing an initial nod by Miami’s commissioners. The project also got an initial nod for a $31 million dollar aid package by the commission.
Inter Miami, David Bechkam’s South Florida MLS Expansion Team, Looks for Other Viable Stadium Options
After years of back-and-forth with the city of Miami regarding stadium proposals and other important logistical details, Inter Milan is looking at other options to get the ball rolling. Most recently, Fort Lauderdale is seen as a possible option in case things don’t work out in Miami.
Giles Capital Group, Rosemurgy Properties and Schmier Property Group, collectively with Wheelock Street Capital was approved for $125.65 million in financing for the construction of a new project in West Boca Raton. The mixed-use project is set to be over 1 million square feet. It will feature 456 Class A luxury apartments and nearly 172,000 sq feet of retail space.
Last year, Toys “R” Us left nearly 30M square feet vacant in the retail market around the United States. This has opened opportunities for buyers and investors, as we’ve covered several sales of former Toys “R” Us locations in our Top South Florida Retail Center Transactions 2018. This location in Royal Palm Beach sold for $15,800,000 and is 55,962 square feet.
South Florida is seen as one of the top industrial commercial real estate markets in the USA. 2018 did not disappoint as several records were broken during the calendar year, such as rental asking rates, leasing activity, and investment sales.