Oct 07

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 2021, let’s take a look at the overall capital markets figures to give some context to the region’s retail sector.

Miami Retail Capital Markets Statistics

Total Asset Value: $55B
12-Month Sales Volume: $1.6B
Average Market Cap Rate: 5.7%
12-Month Market Sale Price Change / SF: 0%

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: 55%
User: 6%
Institutional: 1%
Private Equity: 5%
REIT / Public: 33%

Buyer Origin:

Local: 39%
National: 60%
Foreign: 1%

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: 53%
User: 24%
REIT / Public: 10%
Institutional: 9%
Private Equity: 4%

Owner Origin:

Local: 57%
National: 40%
Foreign: 3%

Miami Retail Real Estate Statistics: Leases, Sales, and Projects Under Construction – Q3 2021

In Q3 2021 Miami-Dade County’s vacancy rate dropped to 3.8% in contrast to Q2 2021 at 4.6%. The asking rate per sq. foot moved up to an average of $38.55, which is +$1.68 per sq. foot compared to Q4’s average asking rate of $36.87 / sq. foot. One year ago, the asking rate was closer to the current asking rate of $38.35 / sq. foot. Meanwhile, the absorption rate moved up from +45,000 in Q2 2021 to +425,503 in Q3 2021, which represents a +380,503 SF change quarter-to-quarter.

Full List of Top Transactions for Q1 2021, Q4, Q2 and Q1 2020 & Top Shopping Center Transactions for 2020 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. Transactions that are currently under contract and those that have recently traded are setting record numbers, not only in retail but in many other asset classes.”

Marcos Puente, Director of Acquisitions, MMG Equity Partners

South Florida Retail Real Estate Report Q3 2021 - MMG Equity Partners

KEY RETAIL LEASE STATS: Miami-Dade (Q3 2021)

  • Vacancy: 3.8% (Compared to 4.6% in Q2 2021)
  • Absorption: +425,503 (Compared to +45,000 in Q2 2021, +380,503 change)
  • Asking rate PSF: $38.55 (Compared to $36.87 in Q2 2021, +$1.68 change)

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

12 Month Deliveries in SF: 487,000 (328,000 in Q2 2021)
12 Month Net Absorption in SF:
1,100,000 (-1,500 in Q2 2021)
Vancancy Rate:
3.8% (4.6% in Q2 2021)
12 Month Rental Growth: 2.0% (-0.4% in Q2 2021)

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. Obviously the pandemic was a widespread hit on many markets, including South Florida retail; however, Miami-Dade County continues to lead rental rates in the area at $38.55 / 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 (Past 12 Months)

1. Central Shopping Plaza – 3825 NW 7th St
Tenant:
Target
Size: 77,471 SF
Lease Type: New
Space Type: Shopping Center
Tenant Rep Co: Colliers International
Leasing Rep Co: Courtelis Company

2. Botanica – South Dade
Tenant: Walmart
Size: 50,000 SF
Space Type: Shopping Center
Tenant Rep Co: Not Listed
Leasing Rep Co: Not Listed

3. Kendall Place – Kendall
Tenant:
Burlington
Size: 45,000 SF
Space Type: Shopping Center
Tenant Rep Co: Atlantic Retail
Leasing Rep Co: Colliers International

4. 19525 S Dixie Hwy – South Dade
Tenant:
AutoZone
Size: 39,602 SF
Lease Type: New
Space Type: Shopping Center
Tenant Rep Co: NAI Miami
Leasing Rep Co: NAI Miami

5. MiamiCentral – Downtown Miami
Tenant:
Powerhouse Gym
Size: 35,830 SF
Lease Type: New
Space Type: Shopping Center
Tenant Rep Co: Not Listed
Leasing Rep Co: JLL

See Top Retail Leases in South Florida Q2 2021

 

TOP RETAIL SALES STATISTICS: Miami (Past 12 Months)

Over the course of the past 12 months there have been 444 total retail real estate transactions in Miami / South Florida with an average cap rate of 5.8%. The average price per square foot at the time of sale was $338, and the average vacancy was 5.5%.

Sales Comparables: 444 (374 in Q2 2021)
Average Cap Rate:
5.7% (5.8% in Q2 2021)
Average Price/ SF:
$345 ($316 in Q2 2021)
Average Vacancy at Sale: 5.4% (3.6% in Q2 2021)

TOP RETAIL SALES TRANSACTIONS: Miami-Dade (Q3 2021)

Top Transaction Highlight in Q3 2021: The top transaction for retail real estate in Q3 2021, that took place on the tail end of Q2 2021 was the acquisition of SoBe Promos on 80 – 82 NE 29th St in Miami. The retail property sold for $22,000,000, and has over 5,400 square feet, which made the transaction equal to over $4,000 / square foot.

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. 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%

3. Boulan South Beach (2000 Collins Ave)
Price: $34,000,000
Size: 35,482 SF
Price/ SF: $958
Cap Rate: Not Listed
Vacancy: 0%

4. Wynwood Block (2601 – 2699 NW 2nd Ave)
Price: $24,200,000
Size: 23,000 SF
Price/ SF: $1,052
Cap Rate: Not Listed
Vacancy: 0%

5. SoBe Promos (80 – 82 NE 29th St)
Price: $22,000,000
Size: 5,411 SF
Price/ SF: $4,066
Cap Rate: Not Listed
Vacancy: 0%

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

 

Miami Worldcenter in Florida

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

There are currently 40 retail properties under construction in the Miami market representing nearly 4M square feet of new product. This represents 2.7% 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: 40 (38 in Q2 2021)
Total Size:
3,748,796 (2,707,232 SF in Q2 2021)
Percent of Inventory:
2.7% (2.0% in Q2 2021)
Pre-leased: 87.0% (79.9% in Q2 2021)

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

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

4. 9700 Collins Ave
Size: 340,387 SF
Completion Date: Q1 2024
Developer/ Owner: Bal Harbour Shops / Whitman Family Development
Stories: 2

5. 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

Data sources: MMG Equity Partners, CoStar, and Colliers