South Florida Retail Summary (Q4 2017)

Feb 05
South Florida Retail Summary (Q4 2017)

Market Report for South Florida Retail

A summary of the highlights, trends, and current market activity of Q4 2017 for South Florida commercial real estate focusing on Miami-Dade County: Analysis derived and compiled from leasing data and transaction reports in order to better understand the health of the CRE market in Miami-Dade County.

In Q4, 2017 Miami-Dade County’s vacancy rate moved down to 3.5% from 3.6% in Q3, with the asking rate per sq. foot rising to an average of $38.30, up from $37.55 in contrast to Q3. Concurrently the absorption rate is -18,209 for Q4.

The key transaction highlights in Q4 are: Jamestown purchasing 108,964 SF of property in Miami Lakes for $34,250,000 and COFE Properties acquiring 108,642 SF of property in South Dade for $31.5 million.

Jamestown, an Atlanta-based investment and management firm, acquired the Country Club Plaza from an affiliate of Deutsche Asset Management in Miami Lakes for $314/ SF. The 100% leased retail center is anchored by Publix with other household names as tenants, including: CVS Pharmacy, Panera Bread, and Party City. Jamestown is heavily active in both the New York and South Florida commercial real estate markets.

“Investor and retailer appetite for the South Florida commercial real estate market continues to be very positive.  Strong demand from domestic and international investors for well-positioned South Florida grocery-anchored shopping centers, a limited supply, and historically low interest rates, are continuing to keep cap-rates at historically low levels.”

Gabriel Navarro, Principal

KEY STATS: Miami-Dade

The following are key indicators of the Miami retail market in quarter 4 of 2017. They represent an aggregate of retail property types including malls, general retail, neighborhood centers, strip centers, and other retail properties.

  • Q4 Vacancy: 3.5% (compared to 3.6% in Q3)
  • Q4 Absorption: -18,209 (compared to 874,657 in Q3)
  • Q4 Asking rate PSF: $38.30 (up from $37.55 in Q3)

TOP SALES TRANSACTIONS: Miami-Dade

Publix-anchored retail centers led the top CRE sales transactions with 2 of the top 5 sales in Miami-Dade County. This trend illustrates that investors are very much still interested in retail, especially if the centers are grocery-anchored. These sales contributed to an active 2017 for commercial real estate in South Florida, with an average Cap Rate of 6.4% for the year. 

Old Cutler Towne Center

1. Country Club Plaza, 18454 NW 67th Ave (Miami Lakes, FL)
Buyer: Jamestown
Size: 108,964 SF
Price: $34,250,000

2. Old Culter Town Center, 16000 NW 57th Ave (South Dade, FL)
Buyer: COFE Properties
Size: 108,642 SF
Price: $31,500,000

3. Ross Dress for Less, 12100 SW 127th Ave (Aventura, FL)
Buyer: Premier Asset Management
Size: 27,380 SF
Price: $16,384,000

4. ULTA at South Beach, 337 Lincoln Rd (Miami Beach, FL)
Buyer: Cayre Group
Size: 14,813 SF
Price: $15,000,000

5. Kendall Village Square, 10471 N Kendall Dr (Miami Beach, FL)
Buyer: 90 S.W. 8th St. Enterprises Inc.
Size: 31,251 SF
Price: $14,625,000

6. 1010 Brickell, 1010 Brickell Ave (Miami, FL)
Buyer: Key International
Size: 11,252
Price: $10,500,000

TOP LEASING TRANSACTIONS: Miami-Dade

Vacancy rates in the South Florida commercial real estate market have stayed around 3% consistently for 3 years now, even with rental rates reaching historic highs. Miami-Dade County continues to lead rental rates in the area at $38.30/ sf), opposed to Broward County at $20.00/ sf), and Palm Beach County at $20.84/ sf respectively.


1. Ross Dress for Less
 – 18403- 18591 S Dixie Hwy (South Dade, FL)
Size: 26,100 SF
Lease Type: New

2. American 101 Team – 18100- 18288 Collins Ave (Aventura, FL)
Size: 16,500 SF
Lease Type: New

3. Anatomy Gym – 3415 NE 2nd Ave (Biscayne Corridor, FL)
Size: 14,000 SF
Lease Type: New

4. Pasteur Medical – 9796 SW 24th St (West Miami, FL)
Size: 11,500 SF
Lease Type: New

PROJECTS UNDER DEVELOPMENT: Miami-Dade

There are currently 58 retail properties under construction in the Miami market representing 2.38M square feet of new product. The following are the top 5 largest retail projects currently under development.


1. Miami Worldcenter
 – NE  1st Ave (Miami, FL)
Developer: Miami Worldcenter Associates, LLC & The Taubman Company
Size: 450,000 SF
Completion: March 2018

2. Aventura Mall Expansion – 19505 Biscayne Blvd (Aventura, FL)
Developer: Aventura Mall Ventures
Size: 315,000 SF
Completion: March 2018

3. Gardens Promenade – 18000 NW 27th Ave  (Miami Gardens, FL)
Developer: IMC Equity Group
Size: 300,000 SF
Completion: July 2018

4. MiamiCentral Retail – 200NW 1st Ave (Miami, FL)
Developer: All Aboard Florida
Size: 130,000 SF
Completion: March 2018

5. Met Square- Silverspot Cinema – 300 SE 3rd Ave (Miami, FL)
Developer: MDM Development, LLC
Size: 113,508 SF
Completion: March 2018


Data sources: CoStar and Colliers