May 19

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

Market Snapshot for South Florida Retail Real Estate

A summary of the statistical highlights, latest retail transactions, vacancy / lease trends, and current market activity for South Florida commercial real estate focusing on Miami-Dade County. The retail real estate report is updated every quarter by our CRE experts. The analysis is derived and compiled from leasing data, transaction reports, and under construction projects in order to better understand the overall health of the retail real estate market in Miami-Dade County.

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

In Q1 2021 Miami-Dade County’s vacancy rate stayed even at 4.6% in contrast to Q4 2020 also at 4.6%.  The asking rate per sq. foot moved up to an average of $36.87, which is +$1.04 per sq. foot compared to Q4’s average asking rate of $35.83 / sq. foot. One year ago, the asking rate was $38.35 / sq. foot. Meanwhile, the absorption rate moved up from -42,354 in Q4 2020 to +45,000 in Q1 2021, which represents a +87,354 SF change quarter-to-quarter.

Full List of Top Transactions for Q4, Q2 and Q1 2020 & Top Shopping Center Transactions for 2020 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

South Florida Retail Real Estate Miami Q1 2021- MMG Equity Partners 2021

KEY RETAIL LEASE STATS: Miami-Dade (Q1 2021)

  • Vacancy: 4.6% (Even compared to 4.6% in Q4 2020)
  • Absorption: +45,000 (Compared to -42,354 in Q4 2020, +87,354 change)
  • Asking rate PSF: $36.87 (Compared to $35.83 in Q4 2020, +1.04 change)

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

12 Month Deliveries in SF: 328,000 (953,000 in Q4 2020)
12 Month Net Absorption in SF:
-1,500 (455,000 in Q2 2020)
Vancancy Rate:
4.3% (4.3% in Q4 2020)
12 Month Rental Growth: -0.4% (0.5% in Q4 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 $35.83 / sf, opposed to Broward County at $22.71/sf (compared to $21.92 / sf in Q4 2020) with a vacancy rate of 5.4%, and Palm Beach County at $24.51/ sf (compared to $23.45 / sf in Q4 2020) with a vacancy rate of 5.2% respectively.

TOP LEASING TRANSACTIONS: South Florida (Q1 2021)

1. Central Shopping Plaza – 3825 NW 7th St 
Tenant:
Target
Size: 77,000 SF
Lease Type: New
Space Type: Shopping Center

2. Kendall Place – 8811 – 8851 SW 107th Ave
Tenant: Burlington
Size: 45,000 SF
Lease Type: New
Space Type: Shopping Center

3. MiamiCentral – 600 NW 1st St – Miami
Tenant:
PowerHouse Gym
Size: 36,000 SF
Lease Type: New
Space Type: Shopping Center

4. North Beach Town Center – Byron & Abbott Ave South of 71st 
Tenant:
Target
Size: 30,089 SF
Lease Type: New
Space Type: Shopping Center

5. CityPlace Doral – 3450 – 3535 NW 83rd Ave 
Tenant:
Chico Malo
Size: 8,274 SF
Lease Type: New
Space Type: Shopping Center

See Top Retail Leases in South Florida Q1 2021

 

TOP RETAIL SALES STATISTICS: Miami (Past 12 Months)

Over the course of the past 12 months there have been 374 total retail real estate transactions in Miami / South Florida with an average cap rate of 5.7%. The average price per square foot at the time of sale was $316, and the average vacancy was 3.6%.

Sales Comparables: 374 (356 in Q4 2020)
Average Cap Rate:
5.7% (5.8% in Q4 2020)
Average Price/ SF:
$316 ($267 in Q4 2020)
Average Vacancy at Sale: 3.6% (4.8% in Q4 2020)

TOP RETAIL SALES TRANSACTIONS: Miami-Dade (Q1 2021)

Top Transaction Highlight in Q1 2021: The top transaction for retail real estate in Q1 2020 was the acquisition of Pinecrest Town Center by a joint venture between Limestone Asset Management & Orion Real Estate Group. The shopping center was sold for a total of $32,000,000, and the property has over 90K square feet total, which made the transaction equal to $340 / square foot.

1. Pinecrest Town Center (12651 S Dixie Hwy)
Price: $32,000,000
Size: 94,175 SF
Price/ SF: $340
Buyer: JV – Limestone Asset Management & Orion Real Estate Group
Property Type: Shopping Center

2. Wynwood Block (2621 NW 2nd Ave)
Price: $24,100,000
Size: 28,751 SF
Price/ SF: $838
Buyer: Wynwood Block Realty

3. Bayshore Landing (2500 Bayshore Dr)
Price: $14,700,000
Size: 46,738 SF
Price/ SF: $315
Buyer: Suntex Marinas

4. 310 & 318 25th St 
Price: 
$11,800,000
Size:
20,000 SF
Price/ SF: 
$590
Buyer: 
Forte Capital Management

5. Wawa (3300 NW 87th Ave) – Miami
Price: $10,800,000
Size: 6,119 SF
Price/ SF: $1,765
Buyer: Mash Petroleum

TOP RETAIL SALES TRANSACTIONS: Miami-Dade (Q4 2020)

Top Transaction Highlight in Q4 2020: The top transaction for retail real estate in Q4 2020 was the acquisition of The Shops at Sunset Place in Kendall by Midtown Development. The mall was sold for a total of $65,500,000, and the property has over 500K square feet total, which made the transaction equal to $126 / square foot.

1. The Shops at Sunset Place (5701 Sunset Dr) – Kendall
Price: $65,500,000
Size: 519,000 SF
Price/ SF: $126
Buyer: Midtown Development
Property Type: Mall

2. Winn-Dixie (5850 SW 73rd St) – Kendall
Price: $19,950,000
Size: 20,664 SF
Price/ SF: $918
Buyer: AvalonBay Communities
Property Type: Supermarket

3. Largo Honda Dealership (554 NE 1st Ave) – South Dade
Price: $16,750,000
Size: 180,000 SF
Price/ SF: $96
Buyer: William Lehman Auto Group
Property Type: Auto Dealership

4. 24-7 NW 2nd Ave – Miami 
Price: 
$11,500,000
Size: 
19,000 SF
Price/ SF: 
$605
Buyer: 
Property Markets Group
Property Type: 
Storefront

5. Walgreens (1202 SW 1st St) – Miami
Price: $6,978,600
Size: 50,814 SF
Price/ SF: $139
Buyer: Oak Street Real Estate Capital
Property Type: Drug Store

TOP RETAIL SALES TRANSACTIONS: Miami-Dade (Q2 2020)

Top Transaction Highlight in Q2 2020: The top transaction for retail real estate in Q2 2020 was the acquisition of Whole Foods in Coral Gables by Zurich Alternative Asset Management. The ground floor retail space was sold for a total of $46,750,000, and the property has nearly 60,000 square feet total, which made the transaction equal to $783 / square foot.

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
Price: 
$12,750,000
Size:
17,521 SF
Price/ SF: 
$728
Buyer: 
BAL Harbour Village 
Property Type: 
Bank

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

TOP RETAIL SALES TRANSACTIONS: Miami-Dade (Q1 2020)

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
Price: 
$12,000,000
Size: 
12,379 SF
Price/ SF: 
$969
Buyer: 
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 Shopping Center Transactions in 2020

Downtown Dadeland South Florida Retail Report 2019

TOP RETAIL SALES TRANSACTIONS: Miami (Past 12 Months)

1. The Shops at Sunset Place (5701 Sunset Dr)
Price: $65,500,000
Size: 523,000 SF
Price/ SF: $125
Cap Rate: Not Listed
Vacancy: 5.8%

2. Plaza San Remo (6705 SW 57th Ave)
Price: $46,750,000
Size: 56,694 SF
Price/ SF: $783
Cap Rate: 5.2%
Vacancy: 1.7%

3. Venice at Crystal Lakes (677 NE 35th Ave)
Price: $37,560,000
Size: Not Listed
Price/ SF: Not Listed
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%

Miami Worldcenter in Florida

RETAIL CONSTRUCTION PROJECTS STATISTICS: South Florida (Past 12 Months)

There are currently 38 retail properties under construction in the Miami market representing nearly 3M square feet of new product. This represents 2% of the total retail real estate inventory and nearly 80% of the total space is pre-leased.

Below the stats you’ll find the top-5 largest retail projects currently under development.

Properties Currently Under Construction: 38 (32 in Q4 2020)
Total Size:
2,707,232 (1,879,865 SF in Q4 2020)
Percent of Inventory:
2.0% (1.4% in Q4 2020)
Pre-leased: 79.9% (74.7% in Q2 2020)

RETAIL CONSTRUCTION PROJECTS: South Florida (Past 12 Months)

1. 12/12 Aventura
Size: 428,000 SF
Completion Date: Q1 2022
Developer/ Owner: Shalev Development Group, LLC
Stories: 4

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

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

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

5. 2718 SW 28th Ln
Size: 170,000 SF
Completion Date: Q2 2021
Developer/ Owner: Agave Ponce, LLC / Agave Holdings
Stories: 2

Data sources: MMG Equity Partners, CoStar, and Colliers