South Florida Retail Summary (Q4 2018)

Feb 14
South Florida Retail Summary (Q4 2018)

Market Snapshot for South Florida Retail

A summary of the highlights, trends, and current market activity of Q4 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 Q4 2018 Miami-Dade County’s vacancy rate decreased -0.2% from 4.2% in Q3 2018 to 4.0%. The asking rate per sq. foot moved up to an average of $$38.50, which is +$1.64 per sq. foot compared to Q3’s average of $36.86/ sq. foot. Meanwhile, the absorption rate moved up from -291,415 in Q3 to -161,406 in Q4, which represents a +130,009 SF change quarter-to-quarter.

Top Transaction Highlight in Q4: Midtown Capital Partners acquiring Downtown Dadeland for $78.2 million with the following tenants: Orangetheory Fitness, Ghee, Pasión del Cielo, West Elm, and Harry’s Pizzeria. The 127,240 SF retail property was 97% leased when purchased. About Midtown Capital Partners: Midtown Capital Partners is a real estate investment and asset management firm. Founded in 2010 by Alexander Saieh and Alejandro Velez, the Miami-based commercial real estate firm currently manages over $450 million of income-generating properties in South Florida.

Full List of Top Transactions for Q4 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


  • Vacancy: 4.0% (Compared to 4.2% in Q3 2018, -0.2% change)
  • Absorption: -161,406 (Compared to -291,415 in Q3 2018, +130,009 change)
  • Asking rate PSF: $38.50 (Compared to $36.86, +$1.64 in Q3 2018)


Sales Comparables: 479
Average Cap Rate:
Average Price/ SF:
Average Vacancy at Sale: 3.4%

Sunset Harbour Shops Miami Florida MMG Equity Partners


One of the highlight sales transactions is that of a former Toys R Us store, which is an example of the reutilization / revitalization of major store spaces that were occupied by a “category killer” retailer. 

1. Downtown Dadeland (7250 N Kendall Dr)
Price: $78,200,000
Rentable Building Area: 127,240 SF
Price/ SF: $615
Cap Rate: 4.4%
Vacancy: 3%

2. Doral Commons (7550 NW 104th Ave)
Price: $71,600,000
Rentable Building Area: 75,655 SF
Price/ SF: $518
Cap Rate: 5.3%
Vacancy: 1.6%

3. Downtown Dadeland (7250 N Kendall Dr)
Price: $34,500,000
Rentable Building Area: 91,191 SF
Price/ SF: $378
Cap Rate: 6.4%
Vacancy: 6.3%

4. 943- 947 Lincoln Rd
Price: $25,650,000
Rentable Building Area: 7,590 SF
Price/ SF: $3,379
Cap Rate: N/A
Vacancy: 0%

5. 8325 S Dixie Hwy (former Toys “R” Us)
Price: $25,000,000
Rentable Building Area: 42,000 SF
Price/ SF: $595
Cap Rate: N/A
Vacancy: 0%

6. 6400 NW 186th St
Price: $21,006,888
Rentable Building Area: 78,990 SF
Price/ SF: $266
Cap Rate: 6.4%
Vacancy: 6.3%

7. Building A (7205 N Kendall Dr)
Price: $19,994,415
Rentable Building Area: 37,037 SF
Price/ SF: $540
Cap Rate: 4.4%
Vacancy: 0%

See South Florida’s Top Shopping Center Transactions 2018


1. Downtown Dadeland Retail (7270 N Kendall Dr) – Kendall, FL
Price: $78,200,000
Size: 127,240 SF
Price/ SF: $615
Buyer: Midtown Capital Partners

2. Publix (18320 Collins Ave) – Aventura, FL
Price: $31,700,000
Size: 53,558 SF
Price/ SF: $592
Buyer: Dezer Development

3. Gables Entrance (2209 SW 37 Ave) – Coral Way, FL
Price: $16,400,000
Size: 12,437 SF
Price/ SF: $1,319
Buyer: Carlos Mattos

4. 24 Hour Fitness (19371 NW 27th Avenue) – Miami Gardens, FL
Price: $12,070,000
Size: 37,000 SF
Price/ SF: $326
Buyer: ACRE Corporation

5. 1111 SE 1st Ave – Miami, FL
Price: $11,500,000
Size: 18,600 SF
Price/ SF: $618
Buyer: Massa Investment Group

RETAIL PROJECTS STATISTICS: South Florida (Past 12 Months)

Properties Currently Under Construction: 55
Total Size:
3,152,830 SF 
Percent of Inventory:
Preleased: 90.8%

There are currently 55 retail properties under construction in the Miami market representing 3.15M square feet of new product. The following are the top 7 largest retail projects currently under development.

Miami Worldcenter in Florida

RETAIL CONSTRUCTION PROJECTS: South Florida (Past 12 Months)

1. SoLe Mia Mainstreet (15000 Biscayne Blvd) – Northeast Dade
Size: 630,950 SF
Preleased: 100%
Completion Date: Q1 2019
Leasing Co: N/A
Developer/ Owner: Turnberry Associates

2. Miami Worldcenter (NE 1st Ave)
Size: 450,000 SF
Completion Date: Q2 2019
Leasing Co: The Forbes Company
Developer/ Owner: Miami Worldcenter Associates, LLC & The Taubman Company

3. River Landing Shops (1400 NW North River Dr)
Size: 345,000 SF
Preleased: N/A
Completion Date: Q4 2019
Leasing Co: N/A
Developer/ Owner: Hellinger Panabad Companies

4. Gables Station (251 S Dixie Hwy) – Coral Gables
Size: 300,000 SF
Preleased: 100%
Completion Date: Q3 2020
Leasing Co: NP International
Developer/ Owner: NP International

5. Homestead Station (4-100 S Krome Ave)
Size: 145,300 SF
Preleased: N/A
Completion Date: Q3 2019
Leasing Co: N/A
Developer/ Owner: Axiom Construction Co / City of Homestead FL

6. Plaza Coral Gables (3001 Ponce de Leon Blvd)
Size: 137,000 SF
Preleased: N/A
Completion Date: Q2 2020
Leasing Co: N/A
Developer/ Owner: N/A

7. Warren Henry Auto Group (15001 Biscayne Blvd)
Size: 100,000 SF
Preleased: N/A
Completion Date: Q1 2019
Leasing Co: N/A
Developer/ Owner: Turnberry Associates

Other Notable Construction Projects: 

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

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

12 Month Deliveries in SF: 1.7 M
12 Month Net Absorption in SF:
617,000 SF 
Vancancy Rate:
12 Month Rental Growth: 2.9%

Vacancy rates in the South Florida commercial real estate market have stayed around 3-4% consistently for over 3 years now, even with rental rates reaching historic highs. Miami-Dade County continues to lead rental rates in the area at $38.50/ sf, opposed to Broward County at $20.95/ sf, and Palm Beach County at $24.06/ sf respectively.


Youfit Health Club Miami FL


1. Palm Springs Mile (500 W 49th St) – Medley / Hialeah
Size: 52,000 SF
Tenant: CheapO’s Depot
Lease Type: New

2. 8755 SW 24th St
 Youfit Health Club
Size: 30,000 SF
Landlord: Kimco Realty Corp
Landlord Rep: Susanna Hazzi
Tenant Rep: Christy Stross – West Central RE

3.Flagler Park Plaza (8221- 8355 W Flagler St) 
 Youfit Health Club
Size: 24,840 SF
Landlord: Publix Super Markets
Landlord Rep: N/A
Tenant Rep: Christy Stross – West Central RE

4.RK Sunny Isles Square (2983- 3169 NE 163rd St) 
 Scan Design Contemporary Furniture
Size: 22,800 SF
Landlord: RK Centers
Landlord Rep: Raanan Katz
Tenant Rep: N/A

5. 775 SW 8th St
 Planet Fitness
Size: 14,700 SF
Landlord: L.G.O. Corporation
Landlord Rep: Arnaldo Cantero III – BGRS
Tenant Rep: N/A

6. RK Towncenter (16850 Collins Ave) – Aventura
Size: 12,000 SF
Tenant: Wings
Lease Type: New

7. 9473 W Flagler St
 Eye Doctors of South FL
Size: 1,600 SF
Landlord: Kimco Realty Corp
Landlord Rep: Susanna Hazzi
Tenant Rep: Christy Stross – West Central RE

See Top Retail Leases in South Florida Q4 2018


Data sources: MMG Equity Partners, CoStar, and Colliers 

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