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 Q2 2019 includes: why Florida commercial real estate is booming, news on the largest shopping mall in the United States (American Dream Miami), WeWork gobbling up more CRE space for their coworking spaces in Miami, and a possible magnetic train in Miami.
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.