While 2019 was a fruitful year in Florida’s CRE market, particularly in South Florida commercial real estate, we now focus on the challenges presented in early 2020. Despite the current pandemic, new, major developments took place and many property refinances were sealed in several locations.
Meanwhile, domestic and international investors contributed to the market, and overall the financial data in Florida’s CRE remains positive for the time being; however, analysts have changed their tone. Before they were much more bullish on the commercial real estate market here, and now they are expressing caution about the long-term situation in the region.
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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. The update for Q2 2020 includes: the state of the Miami-Dade retail market, tips for retail lease up efforts, public transportation in Miami, an update of the American Dream mega mall, and several property transactions.
Florida Commercial Real Estate News – Q2 2020
Miami-Dade’s retail market is affected by the pandemic, as is the case across the board with many business sectors; however, reports coming out of Q1 2020 show that fundamentals (vacancy rates and asking rates) are staying stable for the time being.
BisNow interviewed Beth Azor, from Azor Advisory Services, to discuss the many tactics one can utilize to boost lease up efforts in the retail sector. There are many modern resources and tools that are useful for prospecting and building relationships with retail store owners.
Despite having their plans to start the MLS season in March by the pandemic, Beckham and his partners are pushing forward to get new plans approved for their stadium in Miami proper. This will likely cause some litigious proceedings, but their resolve to get their stadium their way seems tireless.
For years developers have been working on plans to connect Downtown Miami with Miami Beach via public transit. After several proposals, a likely candidate to bridge the gap is the monorail.
The pandemic has certainly shaken some business sectors, as people are adapting to the presence of the virus throughout the country / world. Due to this presence, CRE developers are adjusting plans of several ongoing projects to have smaller / less retail spaces and larger office spaces.
BizJournals covers the latest updates for American Dream, the Miami mega mall that is in the works is set to break ground in 2021, and will rival Mall of America and other mega malls of the country. There are also a number of renderings provided in the report.
Whole Foods-anchored center, San Remo Plaza, in Coral Gables sold for $46.75 million. According to South Florida Business Journal, the mixed-use center is in an affluent part of the city.
Miami Worldcenter is preparing to develop a 100,000-square-foot medical center that will be stocked with ventilators, MRIs, CT scans, and surgical rooms in order to bolster efforts in fighting and mitigating the pandemic.
Simon Property Group is trying to get out of a deal to purchase Taubman Centers’ 26 malls across the United States. This decision will likely bring them to court.
CPExecutive interviewed Claudio Mekler regarding the current pandemic, and how it is creating opportunities for investors from around the world, particularly from Latin American countries.
FA Commercial set up and completed the sale of NNN CVS Pharmacy in South Florida for $4.6 million. CVS has had a number of sales at this particular property with a cap rate of 5%.
Florida Commercial Real Estate News – Q1 2020
The update for Q1 2020 includes: how CRE companies are adapting to the current pandemic, MMG selling a commercial retail property, and several CRE property refinances around the state.
BisNow covers the shift in commercial real estate during this “new reality” for several CRE executives around the country. One thing is for sure, “the commercial real estate industry never stops.”
South Florida property developers and CRE brokers are giving back in various ways to the community in an attempt to assist with medical workers and others who are on the front lines.
Real estate professionals around the United States get some welcome news, as the business sector is declared ‘essential business’ by the government’s Homeland Security Department.
National retailers, such as Urban Outfitters, are implementing various tactics in order to mitigate the huge financial losses they will take while their stores are forced to be closed for the foreseeable future.
While it is well known that architecture involves the structural and visual aspects of real estate properties, many don’t know that it also involves design of ways to mitigate possible spreading of viruses. Architects incorporate crowd control, proper ventilation and other factors t0 help curb the effects of an illness.
South Florida commercial real estate was on fire in late-2019; however, experts are speculative as to the amount of gas that is left in the tank moving into 2020.
MMG Equity Partners sells the Crystal Lakes Shopping Center in Homestead, Florida for $22.7 million, at a price of $265 / square foot.
Publix steps up to the plate in assisting tenants with the current pandemic by waiving rent for the retail tenants in the many shopping centers they own around the country.
Wellington Village Green Center in Wellington, Florida sold to a publicly traded company for $36 million. The shopping center is anchored by Trader Joe’s.
The Palmetto Plaza in Miami Gardens, anchored by Aldi, sold for $33 million to CORE Investment Management.
Terra Group sealed the $45 million refinance of their 150,000-square-foot, Pines City Center in Pembroke Pines, Florida. It’s a mixed-use / lifestyle venue with a luxury apartment complex on the premises.
The federal government is contacting commercial real estate property owners and brokers nationwide to lease empty industrial / warehouse spaces for temporary medical facility purposes.
Aztec Group inked a $17.4M refinance for Sunset Strip, a retail center in Miami. The property is 86,029 square feet. The center is anchored by Presidente Supermarket and Dollar Tree.
Treo Group, based in Miami, sealed a construction loan for $33.3M to start development of VOX Miami. VOX Miami is a two-phased, $125-million transportation-anchored CRE project in South Miami.
An affiliate of KPR Centers, a real estate investment, development, and management company, inked a $28.5M loan to refinance Sunshine Plaza. The retail center is anchored by Publix and Marshall’s.