Nov 16

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.

Before we dive into the specific statistics for Miami’s retail real estate market in Q3 2022, let’s take a look at the overall capital markets figures to give some context to the region’s retail sector. An important statistic that investors keep an eye on is the market cap rate, which currently sits at 5.4% in the Miami area. That is a bit above the expected average of commercial real estate properties nationwide, around 4%.

Miami Retail Capital Markets Statistics

Total Asset Value: $61.8B
12-Month Sales Volume: $3B
Average Market Cap Rate: 5.4%
12-Month Market Sale Price Change / SF: +8.7%

Miami Retail Real Estate Sales Volume by Buyer Type & Origin (Past 12 Months)

Below are the buyer types and their origins, i.e.: local, national, or international investors of retail properties in Miami.

Buyer Type:

Private: 70%
User: 13%
Institutional: 7%
Private Equity: 2%
REIT / Public: 8%

Buyer Origin:

Local: 27%
National: 68%
Foreign: 5%

Miami Retail Real Estate Asset Value by Owner Type & Origin (Past 12 Months)

Below are the owner types and the origins of retail property owners in Miami broken down by their percentage of representation.

Owner Type:

Private: 59%
User: 21%
REIT / Public: 9%
Institutional: 7%
Private Equity: 4%

Owner Origin:

Local: 56%
National: 40%
Foreign: 4%

 

Miami Retail Real Estate Statistics: Leases, Sales, and Projects Under Construction – Q3 2022

In Q2 2022 Miami-Dade County’s vacancy rate rose a fraction of a percent to 3.2% in contrast to Q2 2021 at 3.1%. The asking rate per sq. foot moved up to an average of $44.88, which is +$1.17 per sq. foot compared to Q2 2022’s average asking rate of $43.61 / sq. foot. Meanwhile, the absorption rate went up down from 46,592 in Q2 2022 to -21,684 in Q3 2022, which represents a -68,276 SF change quarter-to-quarter.

Full List of Top Transactions for 2022 & Top Shopping Center Transactions for 2021 Provided Below

Insights on the current retail market in South Florida:

The Miami market is firing on all cylinders with an abundance of capital seeking limited inventory that is driving property prices and rents higher. Rent growth has been significant, and transactions that are currently under contract or have recently traded are setting record numbers, in all asset classes.”

Marcos Puente, Director of Acquisitions, MMG Equity Partners

South Florida Miami Retail Real Estate Report Q3 2022

KEY RETAIL LEASE STATS: Miami-Dade (Q3 2022)

Vacancy: 3.2% (Compared to 3.1% in Q2 2022)
Absorption: -21,684 (Compared to 46,592 in Q2 2022, -68,276 change)
Asking rate PSF: $44.88 (Compared to $43.61 in Q2 2021, +$1.17 change)

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

12 Month Deliveries in SF: 576,000 (628,000 in Q2 2022)
12 Month Net Absorption in SF:
873,000 (1.5M in Q2 2022)
Vancancy Rate:
3.2% (3.1% in Q2 2022)
12 Month Rental Growth: 9.9% (9.2% in Q2 2022)

Vacancy rates in the South Florida commercial real estate market have stayed around 3-4% consistently for over half of a decade now, even with rental rates once again reaching historic highs and recovering once again after the initial impact of the pandemic. Obviously Covid-19 had a widespread effect on many markets, including South Florida retail; however, Miami-Dade County continues to lead rental rates in the area at $44.88 / sf with a vacancy rate of 3.2%, as opposed to Palm Beach County at $32.22 / sf with a vacancy rate of 3.3%.

Q3 2022 TOP LEASING TRANSACTIONS: South Florida (Past 12 Months)

1. Target – South Dade
Tenant:
Target
Size: 72,301 SF
Space Type: Shopping Center
Tenant Rep Co: Not Listed
Leasing Rep Co: Not Listed

2. BMW and Mini Cooper – Kendall
Tenant:
South Motors
Size: 72,249 SF
Space Type: Shopping Center
Tenant Rep Co: Not Listed
Leasing Rep Co: Not Listed

3. Westland Promenade – Hialeah
Tenant:
Conn’s HomePlus
Size: 40,000 SF
Space Type: Shopping Center
Tenant Rep Co: Not Listed
Leasing Rep Co: Sterling Organization

4. Midway Crossings – Miami Airport
Tenant:
Micro Center
Size: 30,012 SF
Space Type: Shopping Center
Tenant Rep Co: CC Consulting
Leasing Rep Co: Sterling Organization

5. Development Opportunity – Submarket Not Listed
Tenant:
Not Listed
Size: 30,000 SF
Space Type: Not Listed
Tenant Rep Co: Not Listed
Leasing Rep Co: Not Listed

Westland Promenade - Aerial Photograph
Pictured Above: Westland Promenade

Q2 2022 TOP LEASING TRANSACTIONS: South Florida (Past 12 Months)

1. BMW and Mini Cooper – Kendall
Tenant:
 South Motors
Size: 72,249 SF
Space Type: Shopping Center
Tenant Rep Co: Not Listed
Leasing Rep Co: Not Listed

2. Westland Promenade – Hialeah
Tenant:
 Conn’s HomePlus
Size: 40,000 SF
Space Type: Shopping Center
Tenant Rep Co: Not Listed
Leasing Rep Co: Sterling Organization

3. Miami WorldCenter – Downtown Miami
Tenant:
 Bowlero
Size: 31,000 SF
Space Type: Shopping Center
Tenant Rep Co: The Comras Company
Leasing Rep Co: The Comras Company

4. Development Opportunity – Submarket Not Listed
Tenant:
 Not Listed
Size: 30,000 SF
Space Type: Not Listed
Tenant Rep Co: Not Listed
Leasing Rep Co: Not Listed

5. Palm Spring Mile – Hialeah
Tenant:
 Not Listed
Size: 24,024 SF
Space Type: Shopping Center
Tenant Rep Co: Not Listed
Leasing Rep Co: Philips International

 

Q1 2022 TOP LEASING TRANSACTIONS: South Florida (Past 12 Months)

12 Month Deliveries in SF: 818,000 (680,000 in Q4 2021)
12 Month Net Absorption in SF:
1.9M (1.8M in Q4 2021)
Vancancy Rate:
3.2% (3.4% in Q4 2021)
12 Month Rental Growth: 8.3% (6.4% in Q4 2021)

1. Shops at Botanica – South Dade
Tenant: Walmart
Size: 158,000 SF
Space Type: Shopping Center
Tenant Rep Co: Not Listed
Leasing Rep Co: Not Listed

2. BMW and Mini Cooper – Kendall
Tenant:
South Motors
Size: 72,249 SF
Space Type: Shopping Center
Tenant Rep Co: Not Listed
Leasing Rep Co: Not Listed

3. Meadows Shopping Center – Outlying Miami-Dade County
Tenant:
Publix
Size: 47,955 SF
Space Type: Shopping Center
Tenant Rep Co: Not Listed
Leasing Rep Co: JLL / Romero Law Firm

4. Biscayne Retail Center – Aventura
Tenant:
Burlington
Size: 35,000 SF
Space Type: Shopping Center
Tenant Rep Co: Not Listed
Leasing Rep Co: Axiom Capital Advisors

5. Miami WorldCenter – Downtown Miami
Tenant:
Bowlero
Size: 31,000 SF
Space Type: Shopping Center
Tenant Rep Co: The Comras Company
Leasing Rep Co: The Comras Company

See Top Retail Leases in South Florida Q3 2021

 

TOP RETAIL SALES STATISTICS: Miami (Past 12 Months)

Over the course of the past 12 months there have been 685 total retail real estate transactions in Miami / South Florida with an average cap rate of 5.3%. The average price per square foot at the time of sale was $397, and the average vacancy was 3.5%.

Sales Comparables: 684 (688 in Q2 2022)
Average Cap Rate:
5.3% (5.4% in Q2 2022)
Average Price/ SF:
$397 ($419 in Q1 2022)
Average Vacancy at Sale: 3.5% (2.6% in Q2 2022)

TOP RETAIL SALES TRANSACTIONS: Miami-Dade (Q2 2022)

Top Transaction Highlight in Q2 2022: Mary Brickell Village 

1. Mary Brickell Village (900 S Miami Ave)
Price: 
$185,730,976
Size:
198,600 SF
Price/ SF: 
$935
Cap Rate:
Not Listed
Vacancy:
10.0%

2. Westland Mall (1675 W 49th St)
Price: 
$149,354,700
Size:
315,083 SF
Price/ SF: 
$474
Cap Rate:
Not Listed
Vacancy:
0%

3. Life Time – Gables Station (237 S Dixie Hwy)
Price: $108,553,806
Size: 125,000 SF
Price/ SF: $868
Cap Rate: Not Listed
Vacancy: 0%

4. Lincoln Center (1100 – 1120 Lincoln Rd)
Price: $93,600,000
Size: 129,360 SF
Price/ SF: $724
Cap Rate: Not Listed
Vacancy: 17.0%

5. Homestead Pavilion (2457 NE 10th Ct)
Price: $56,426,562
Size: 201,224
Price/ SF: $280
Cap Rate: Not Listed
Vacancy: 0%

 

TOP RETAIL SALES TRANSACTIONS: Miami-Dade (Q2 2022)

Top Transaction Highlight in Q2 2022: Mary Brickell Village 

1. Mary Brickell Village (900 S Miami Ave)
Price: 
$185,730,976
Size:
198,600 SF
Price/ SF: 
$935
Cap Rate:
Not Listed
Vacancy:
10.0%

2. Westland Mall (1675 W 49th St)
Price: 
$149,354,700
Size:
315,083 SF
Price/ SF: 
$474
Cap Rate:
Not Listed
Vacancy:
0%

3. Lincoln Center (1100 – 1120 Lincoln Rd)
Price: $93,600,000
Size: 129,360 SF
Price/ SF: $724
Cap Rate: Not Listed
Vacancy: 17.0%

4. Homestead Pavilion (2457 NE 10th Ct)
Price: $56,426,562
Size: 201,224
Price/ SF: $280
Cap Rate: Not Listed
Vacancy: 0%

5. Aventura Parksquare (2940 NE 207th St)
Price: $48,000,000
Size: 50,149 SF
Price/ SF: $957
Cap Rate: Not Listed
Vacancy: 0%

 

TOP RETAIL SALES TRANSACTIONS: Miami-Dade (Q1 2022)

Sales Comparables: 684 (594 in Q4 2021)
Average Cap Rate:
5.5% (5.6% in Q4 2021)
Average Price/ SF:
$402 ($432 in Q4 2021)
Average Vacancy at Sale: 4.2% (5.6% in Q4 2021)

Top Transaction Highlight in Q1 2022: Westland Mall

1. Westland Mall (1675 W 49th St)
Price: 
$149,354,700
Size:
315,083 SF
Price/ SF: 
$474
Cap Rate:
Not Listed
Vacancy:
0%

2. Southland Mall (20505 S Dixie Hwy)
Price: $100,400,000
Size: 468,026 SF
Price/ SF: $215
Cap Rate: Not Listed
Vacancy: 0%

3. Homestead Pavilion (2457 NE 10th Ct)
Price: $56,426,562
Size: 201,224
Price/ SF: $280
Cap Rate: Not Listed
Vacancy: 0%

4. Aventura Parksquare (2940 NE 207th St)
Price: $48,000,000
Size: 50,149 SF
Price/ SF: $957
Cap Rate: Not Listed
Vacancy: 0%

5. Tamiami Trail Shops (13740 – 13876 SW 8th St)
Price: $46,589,230
Size: 120,626 SF
Price/ SF: $552
Cap Rate: Not Listed
Vacancy: 0%

See the Top South Florida Retail Shopping Center Transactions in 2021

 

Miami Worldcenter in Florida

Rendering of one of the largest retail projects in Miami over the last few years, Miami WorldCenter

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

There are currently 55 retail properties under construction in the Miami market representing a little over 3.5M square feet of new product. This represents 2.6% of the total retail real estate inventory and nearly 90% 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: 55 (52 in Q2 2022)
Total Size:
3,645,192 (3,564,374 SF in Q2 2022)
Percent of Inventory:
2.6% (2.6% in Q2 2022)
Pre-leased: 89.1% (86.5% in Q2 2022)

RETAIL CONSTRUCTION PROJECTS: South Florida (Past 12 Months)

1. Jaguar Land Rover Dealership
Size: 500,000 SF
Completion Date: Q1 2022
Developer/ Owner: CMC Group, Inc
Stories: 7

2. Block 55 at Sawyers Walk
Size: 362,000 SF
Completion Date: Q1 2023
Developer/ Owner: Miami Worldcenter Associates, LLC & The Taubman Company
Stories: 4

3. 9700 Collins Ave
Size: 340,387 SF
Completion Date: Q1 2024
Developer/ Owner: Bal Harbour Shops / Whitman Family Development
Stories: 2

4. 3715 NW 7th St
Size: 300,000 SF
Completion Date: Q4 2023
Developer/ Owner: Terra Group
Stories: 1

5. Miami WorldCenter – Retail
Size: 300,000 SF
Completion Date: Q4 2022
Developer/ Owner: Miami WorldCenter Associates, LLC / Lalezarian Propertis
Stories: 3

Data sources: MMG Equity Partners & CoStar