Florida Commercial Real Estate News Roundup 2019

Oct 07
Florida Commercial Real Estate News Roundup 2019

2019 is already shaping up to be a promising year in Florida’s commercial real estate market. New, major developments are already underway in several locations, domestic and international investors are contributing 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 eye-catching headlines around Florida and nationwide to shed some light on the current state of the market. This 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 & South Florida Commercial Real Estate News

Florida Commercial Real Estate News – Q3 2019

Miami is #1 in the Nation for Retail Rent Growth

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.

Tutor Perini Corp Wins $260M Miami-Dade Courthouse Contract 

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.

Costo-Anchored Shopping Center Acquired for $97M in South Florida

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.

Blackstone Acquires Warehouse Portfolio from Colony Capital for $6 Billion

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.

Broward Receives Developer Plans for Publix on the Waterfront

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.

A Near Hit by Hurricane Dorian Bodes the Question: Is Florida CRE Ready for a Direct Hit?

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.

Part-Owner of Miami Heat Acquires Best Buy-Anchored Retail Center for $23 Million

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.

Brickell Office Tower Sold for $126M to New York Family CRE Firm

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.

Terra Seals the Deal on $185 Million Construction Loan for New Coconut Grove Project

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.

Luxury Commercial Real Estate Office Market in Coconut Grove is On Fire

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

Commercial Real Estate Development Continues to Boom in Florida

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.

Miami’s Largest American Mall Proposal Closer to Coming to Fruition

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.

New 9-Story Retail Building Proposed for Miami Design District

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.

CBRE Brokers West Palm Beach’s “Dart Vader Building” Sale for $98M

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.

$550M Financing Deal Confirmed by Bal Harbour Shops for Expansion

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.

$38.5M Sale of South Florida Super Walmart Anchored Retail Center Confirmed

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.

Is Miami Poised for a Magnetic Levitation Train – Similar to the Train in Japan?

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.

WeWork Leases 89K Sq Ft Inside Florida’s Tallest Office Building

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.

$72M Borrowed by Menin Development to Build Hotel in Downtown Delray

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

Predictions for South Florida’s Commercial Real Estate Market in 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 JV Sells Whitworth Farms Shopping Center for $19M

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 Store Openings Spike 30% Year-Over-Year in 2018

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.

$350M Mixed-Use Project in South Florida Commences

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.

South Florida Maintains Reputation as a “Safe Haven” for International Investors

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.

$31M Aid for Massive Little Haiti Project Gets One Step Closer to Approval

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.

$126M in Construction Financing Obtained for Upscale Project in Boca Raton

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.

Toys “R” Us Building in Royal Palm Beach Acquired for $15.8 M

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 Industrial CRE Broke Records in 2018

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.

 

2018 CRE News Roundup


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