South Florida Retail Real Estate Summary: Leases, Sales & Construction Projects

Sep 23
South Florida Retail Real Estate Summary: Leases, Sales & Construction Projects

Market Snapshot for South Florida Retail

A summary of the highlights, trends, and current market activity 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 overall health of the CRE market in Miami-Dade County.

View our commercial properties in Florida to see what real estate assets are available for lease / sale.

In Q2 2020 Miami-Dade County’s vacancy rate stayed very stable from Q1 2020: 4.4% to Q2 2020: 4.5%. The asking rate per sq. foot moved down to an average of $35.98, which is -$1.97 per sq. foot compared to Q1’s average of $37.95 / sq. foot. One year ago, the asking rate was $37.58 / sq. foot. Meanwhile, the absorption rate moved down from 1,021,401 in Q1 2020 to -230,698 in Q2 2020, which represents a -1,252,099 SF change quarter-to-quarter.

Full List of Top Transactions for Q1 – Q2 2020 & Top Retail Sales for 2018 Provided Below

Insights on the current retail market in South Florida:

On a macro level, South Florida remains a largely supply constrained market due to the scarcity of available land. Although there has been a softening in rates of non-core product within the market, all properties are still trading at a relatively lower rate than other Florida markets. All new supply that has come to market by means of retailers shuttering has quickly been gobbled up by the development community to either backfill the former retail spaces with new stores, or be repurposed to a new use.”

Marcos Puente, Director of Acquisitions, MMG Equity Partners

KEY RETAIL STATS: Miami-Dade (Q2 2020)

  • Vacancy: 4.5% (Even compared to 4.4% in Q1 2020)
  • Absorption: -230,698 (Compared to 1,021,401 in Q1 2019, -1,252,099 change)
  • Asking rate PSF: $35.98 (Compared to $37.95, -$1.97 change)


Sales Comparables: 318 (345 in Q1 2020)
Average Cap Rate:
6.3% (6.4% in Q1 2020)
Average Price/ SF:
$355 ($335 in Q1 2020)
Average Vacancy at Sale: 6.0% (4.4% in Q1 2020)

Sunset Harbour Shops Miami Florida MMG Equity Partners


1. Whole Foods (6705 Rd Rd) – Coral Gables
Price: $46,750,000
Size: 59,694 SF
Price/ SF: $783
Buyer: Zurich Alternative Asset Management
Property Type: Ground Floor Retail

2. Riviera Plaza (1550 – 1560 S Dixie Hwy) – Coral Gables
Price: $23,000,000
Size: 55,161 SF
Price/ SF: $417
Buyer: Publix Supermarkets Inc
Property Type: Storefront

3. 48 NW 25th St
Price: $17,000,000
Size: 22,462 SF
Price/ SF: $757
Buyer: 3 CI Holdings LLP
Property Type: Storefront

4. Suntrust Bank (9600 Collins Ave) – Miami Beach
17,521 SF
Price/ SF: 
BAL Harbour Village 
Property Type: 

5. 955 Alton Rd – Miami Beach
Price: $9,250,000
Size: 16,441 SF
Price/ SF: $563
Buyer: Lockton Companies
Property Type: Restaurant


Top Transaction Highlight in Q1 2020: The top transaction in Q1 2020 was the acquisition of Palmetto Plaza in Miami Lakes by Core Investment Management. The retail shopping center was sold for a total of $3.3M, and the property has 186K square feet total, which made the transaction equal to $179 / square foot.

1. Palmetto Plaza (16341 NW 57th Ave) – Miami Lakes
Price: $33,300,000
Size: 186,000 SF
Price/ SF: $179
Buyer: Core Investment Management
Property Type: Shopping Center

2. Crystal Lake Shopping Center (3338 NE 7th St) – South Dade
Price: $22,713,700
Size: 85,000 SF
Price/ SF: $267
Buyer: Varaz Real Estate
Property Type: Shopping Center

3. Biscayne Plaza (1800 Biscayne Blvd)
Price: $15,450,000
Size: 19,963 SF
Price/ SF: $774
Buyer: Delorean Holdings LLC
Property Type: Ground Floor Condo

4. Chandler Building (1452 Washington Avenue) – Miami Beach
12,379 SF
Price/ SF: 
EXAN Capital
Property Type: 
Storefront Retail

5. Addison House Midtown Miami (21 NW 36th St) – Miami
Price: $11,150,000
Size: 12,140 SF
Price/ SF: $918
Buyer: Adson 36 Street LLC
Property Type: Storefront Retail

See the Top South Florida Retail Real Estate Sales in 2019

Downtown Dadeland South Florida Retail Report 2019


1. Plaza San Remo (6705 SW 57th Ave)
Price: $46,750,000
Size: 59,694 SF
Price/ SF: $783
Cap Rate: 5.2%
Vacancy: 1.7%

2. Walgreens (509 Collins Ave)
Price: $33,050,000
Size: 22,875 SF
Price/ SF: $1,445
Cap Rate: 4.9%
Vacancy: 0%

3. Nissan (17305 S Dixie Hwy)
Price: $31,100,000
Size: 72,333 SF
Price/ SF: $430
Cap Rate: Not Listed
Vacancy: 0%

4. Civica Center (1050 NW 14th St)
Price: $26,000,000
Size: 36,000 SF
Price/ SF: $722
Cap Rate: Not Listed
Vacancy: 50.9%

5. Crystal Lakes Shopping Center (3316 – 3338 NE 7th St)
Price: $22,713,640
Size: 36,000 SF
Price/ SF: $265
Cap Rate: 6.7%
Vacancy: 1.4%

See South Florida’s Top 25 Shopping Center Transactions 2019

RETAIL PROJECTS STATISTICS: South Florida (Past 12 Months)

Properties Currently Under Construction: 52 (49 in Q1 2020)
Total Size:
2,320,740 (2,321,544 SF in Q1 2020)
Percent of Inventory:
1.7% (1.7% in Q1 2020)
Preleased: 75.5% (75.4% in Q1 2020)

There are currently 52 retail properties under construction in the Miami market representing nearly 2.3M square feet of new product. The following are the top 5 largest retail projects currently under development.

Miami Worldcenter in Florida

RETAIL CONSTRUCTION PROJECTS: South Florida (Past 12 Months)

1. 9700 Collins Ave
Size: 340,387 SF
Completion Date: Q1 2024
Developer/ Owner: Bal Harbour Shops / Whitman Family Development
Stories: 2

2. Miami Worldcenter – Retail (NE 1st Ave)
Size: 300,000 SF
Completion Date: Q2 2020
Leasing Co: The Forbes Company
Developer/ Owner: Miami Worldcenter Associates, LLC & The Taubman Company
Stories: 3

3. Esplanade (19505 Biscayne Blvd)
Size: 215,000 SF
Completion Date: Q2 2020
Developer/ Owner: Seritage Growth Properties
Stories: 3

4. The Plaza Coral Gables (3011 Ponce de Leon Blvd)
Size: 161,000 SF
Completion Date: Q2 2021
Developer/ Owner: Agave Ponce, LLC / Agave Holdings
Stories: 2

5. Walmart (12500 SW 152nd St)
Size: 158,000 SF
Completion Date: Q3 2020
Developer/ Owner: Ram Realty
Stories: 1

TOP RETAIL LEASING STATISTICS: South Florida (Past 12 Months)

12 Month Deliveries in SF: 1.6 M (1.3M in Q1 2020)
12 Month Net Absorption in SF:
1.3 M (740,000 in Q1 2020)
Vancancy Rate:
4.0% (4.1% in Q1 2020)
12 Month Rental Growth: 0.4% (1.6% in Q1 2020)

Vacancy rates in the South Florida commercial real estate market have stayed around 3-4% consistently for over 5 years now, even with rental rates reaching historic highs. Miami-Dade County continues to lead rental rates in the area at $35.98 / sf, opposed to Broward County at $22.22 / sf, and Palm Beach County at $22.57 / sf respectively.


1. 20811 – 20851 S Dixie Hwy – South Dade
Elegant Beauty Supply
Size: 12,100 SF
Lease Type: New
Space Type: Community Center

2. 14707 SW 42nd St – Outlying Miami-Dade
Tenant: Starbucks
Size: 7,800 SF
Lease Type: New
Space Type: Neighborhood Center

3. 20405 – 205571 Old Cutler Rd – South Dade
La Colonia
Size: 6,266 SF
Lease Type: Renewal
Space Type: Freestanding

4. 9455 – 9613 W Flagler St – Miami Airport
Size: 6,194 SF
Lease Type: New
Space Type: Community Center

See Top Retail Leases in South Florida Q2 2020

Data sources: MMG Equity Partners, CoStar, and Colliers 

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