South Florida Retail Summary (Q2 2018)

Aug 14
South Florida Retail Summary (Q2 2018)

Market Snapshot for South Florida Retail

A summary of the highlights, trends, and current market activity of Q2 2018 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.

In Q2 2018 Miami-Dade County’s vacancy rate moved up a fraction of a percent to 3.9% from 3.8% in Q1 2018, with the asking rate per sq. foot moving down a bit to an average of $37.67, up from $37.88 in contrast to Q1. Meanwhile, the absorption rate moved from 232,303 in Q1 to 283,314 in Q2, which represents a +51,011 SF change.

The key transaction highlights in Q2 are: Inventrust Properties acquiring 105,981 SF of property (which is 95% leased and Trader Joe’s anchored) in Palm Beach Gardens, FL for $88 million and IMC Equity Group purchasing 262K SF of property in Pompano Beach for $56 million.

About Inventrust Properties: Inventrust Properties is a pure-play retail company with a focus on acquiring grocery-anchored open-air centers in key growth markets with favorable demographics. This disciplined acquisition strategy, along with our innovative and collaborative property management approach, ensures the success of both our tenants and business partners and drives net operating income growth for the Company.

Pricing for retail real estate in strong markets remains frothy – if you believe that one of the best ways to tell what’s going to happen with private market real estate pricing is to look at the public market, the public market is saying that something bad is going to happen to private real estate pricing. Transaction volumes remain down as retail real estate investors remain disciplined in the investment strategies and selective in their purchases as they continue to try to understand the fundamental changes impacting the sector.

Leasing demand in South Florida remains very strong, with fast casual and chef-driven restaurant concepts being the most active.”

Gabriel Navarro, Principal

KEY STATS: Miami-Dade

  • Vacancy: 3.9% (Compared to 3.8% in Q1 2018, -0.1% change)
  • Absorption: 283,314 (Compared to 232,303 in Q1 2018, +51,011 change)
  • Asking rate PSF: $37.67 (Compared to $37.88, -$0.19 in Q1 2018)


Publix-anchored retail centers once again were present in the top CRE sales transactions with 2 of the top 10 sales, and a Trader Joe’s anchors the top transaction (PGA Plaza). This trend continues to illustrate that investors are very much still interested in retail, especially if the centers are grocery-anchored

PGA Plaza Trader Joes

1. PGA Plaza, 2500-2690 PGA Blvd (Palm Beach Gardens, FL)
Owner: InvenTrust Properties
Rentable Building Area: 105,981 SF
Price: $88,000,000

2. Festival Flea Market Mall, 2900 W Sample Rd (Pompano Beach, FL)
Owner: IMC Equity Group
Rentable Building Area: 262,000 SF
Price: $56,000,000

3. The Fountains of Miramar, 2905-3001 & 3101-3161 SW 160th Ave(Miramar, FL)
Owner: Stockbridge Capital Group, LLC
Rentable Building Area: 103,339 SF
Price: $40,000,000

4. Palms Plaza, 22191 Powerline Rd (Boca Raton, FL)
Owner: Crow Holdings
Rentable Building Area: 60,676 SF
Price: $30,200,000

5. The Shoppes at Western Woods, 8140-8170 W McNab Rd (North Lauderdale, FL)
Owner: RK Centers
Size: 37,430
Price: $26,850,000

* Notable Sale
Pinecrest Shoppes
, 11635 S Dixie Highway (Pinecrest, FL)
MMG Equity Partners
14,558 SF


Properties Currently Under Construction: 56 (+1 property from Q1 2018)
Total Size:
2,039,114 SF (+58,454 SF change from Q1 2018)
Percent of Inventory:
Preleased: 63.9%

There are currently 56 retail properties under construction in the Miami market representing 2.04M square feet of new product. The following are the top 5 largest retail projects currently under development.

Miami Worldcenter in Florida

1. Miami Worldcenter (NE 1st Ave)
Size: 450,000 SF
Completion Date: June 2019
Developer/ Owner: Miami Worldcenter Associates, LLC & The Taubman Company

2. Gables Station (251 S Dixie Hwy)
Size: 300,000 SF
Completion Date: September 2018
Developer/ Owner: MDM Development, LLC

3. Gardens Promenade (18000 NW 27th Ave)
Size: 300,000 SF
Completion Date: March 2020
Developer/ Owner: NP International

4. MiamiCentral Retail (200 NW 1st Ave)
Size: 180,000 SF
Completion Date: May 2018
Developer/ Owner: All Aboard Florida

5. 2525 NW 82nd Ave 
Size: 90,000 SF
Completion Date: January 2019
Developer/ Owner: Easton Group

6. Crystal Lakes Shopping Center (Homestead, FL)
Size: 85,000 SF
Completion Date: Q4 2018
Developer/ Owner: MMG Equity Partners


Vacancy rates in the South Florida commercial real estate market have stayed around 3-4% consistently for 3 years now, even with rental rates reaching historic highs. Miami-Dade County continues to lead rental rates in the area at $37.67/ sf, opposed to Broward County at $21.21/ sf, and Palm Beach County at $22.65/ sf respectively.

Aldi Florida

1. Kendall Corners, 12851- 13091 (Kendall, FL)
Tenant: Aldi
Size: 21,850 SF
Lease Type: New

2. South Dade Plaza, 18403- 18591 S Dixie Hwy (South Dade, FL)
Tenant: Five Below
Size: 8,200 SF
Lease Type: New

3. Kendall Park Plaza, 16205- 16299 (Kendall, FL)
Tenant: La Colonia Medical Center
Size: 7,800 SF
Lease Type: New

4. 1833- 1839 NW 20th St (Miami, FL)
Tenant: Skill Lab
Size: 7,200 SF
Lease Type: New 

5. 1801 Coral Way (Coral Way, FL)
Tenant: Dr. Limon
Size: 5,000 SF
Lease Type: New

Data sources: CoStar and Colliers 

Leave a Reply

Your email address will not be published. Required fields are marked *