South Florida Retail Summary (Q1 2019)

May 20
South Florida Retail Summary (Q1 2019)

Market Snapshot for South Florida Retail

A summary of the highlights, trends, and current market activity of Q1 2019 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 Q1 2019 Miami-Dade County’s vacancy rate increased +0.1% from 4.1% in Q4 2018 to 4.2%. The asking rate per sq. foot moved up to an average of $37.97, which is +$1.27 per sq. foot compared to Q4’s average of $35.70/ sq. foot. Meanwhile, the absorption rate moved up from -161,406 in Q4 2018 to -3,355 in Q1 2019, which represents a +158,051 SF change quarter-to-quarter.

Top Transaction Highlight in Q1 2019: Arnaldo Bomnin Jr, owner of Bomnin Chevrolet Dadeland, purchased a former Toys “R” Us location near the dealership for $25 million. The 42,034 square foot space sold for $595 / square foot. The property was sold by Tru Trust 2016 LLC after Toys “R” Us filed for bankruptcy in 2017 and eventually closed all locations (23 total in South Florida) in 2018. The total property covers 4.1 acres, so it is speculated that it will be used as an expansion of the Bomnin car dealership in the future.

Top Transaction Highlight in Q4 2018: 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 Q1 2019 & all of 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: 4.2% (Compared to 4.1% in Q4 2018, +0.1% change)
  • Absorption: -3,355 (Compared to -161,406 in Q4 2018, +158,051 change)
  • Asking rate PSF: $37.97 (Compared to $35.70, +$1.27 in Q4 2018)


Sales Comparables: 452
Average Cap Rate:
Average Price/ SF:
Average Vacancy at Sale: 3.8%

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. Former Toys “R” Us (8789 SW 117th Avenue) – Kendall, FL
Price: $25,000,000
Size: 42,034 SF
Price/ SF: $595
Buyer: Arnaldo Bomnin Jr
Property Type: Freestanding

2. CVS (983 Washington Avenue) – Miami Beach, FL
Price: $18,315,000
Size: 12,443 SF
Price/ SF: $1,472
Buyer: KLNB Retail
Property Type: Freestanding

3. Minotti (3801 NE 2nd Avenue) – Miami, FL
Price: $15,500,000
Size: 9,770 SF
Price/ SF: $1,586
Buyer: Nadre Hakakian
Property Type: Storefront

4. Upland (49 Collins Avenue) – Miami Beach, FL
Price: $15,000,000
Size: 9,284 SF
Price/ SF: $1,616
Buyer: Leopold Friedman
Property Type: Storefront

5. King of Diamonds (17800 NE 5th Ave) – Miami, FL
Price: $9,700,000
Size: 60,622 SF
Price/ SF: $160
Buyer: Mario Murgado Jr

6. 2701 NW 2nd Avenue – Miami, FL
Price: $9,500,000
Size: 12,500 SF
Price/ SF: $760
Buyer: Link Real Estate
Property Type: Freestanding

7. Former Toys “R” Us (19525 S Dixie Hwy) – Miami, FL
Price: $7,000,000
Size: 35,497 SF
Price / SF: $197.20
Buyer: Midtown Group

8. 2175 NW 2nd Ave – Miami, FL
Price: $6,300,000
Size: 3,986 SF
Price / SF: $1,580.53
Buyer: Dora Somma

9. Wawa (11101 SW 184th St – Miami, FL
Price: $5,671,000
Size: 5,943 SF
Price / SF: $954.23
Buyer: Joel D. Horowitz

10. 2 NW 79th St – Miami, FL
Price: $5,560,600
Size: 4,100 SF
Price / SF: $1,356.24
Buyer: W. Clarke Swanson


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

4. 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%

5. 6400 NW 186th St
Price: $21,006,888
Rentable Building Area: 78,990 SF
Price/ SF: $266
Cap Rate: 6.4%
Vacancy: 6.3%

See South Florida’s Top Shopping Center Transactions 2018

RETAIL PROJECTS STATISTICS: South Florida (Past 12 Months)

Properties Currently Under Construction: 66
Total Size:
3,870,084 SF 
Percent of Inventory:
Preleased: 87.6%

There are currently 66 retail properties under construction in the Miami market representing 3.87M 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. Warren Henry Auto Group (2300 NE 151 ST)
Size: 683,570 SF
Completion Date: Q2 2019
Developer/ Owner: Turnberry Associates
Stories: 6

2. The Shoppes at Highland (NW 138th St)
Size: 400,000 SF
Completion Date: Q3 2019
Developer/ Owner: Dacar Management, LLC
Stories: 1

3. River Landing (1400 NW North River Dr)
Size: 345,000 SF
Completion Date: Q1 2020
Developer/ Owner: UrbanX Group / Hellinger Penabad Companies
Stories: 5

4. Miami Worldcenter (NE 1st Ave)
Size: 300,000 SF
Completion Date: Q1 2020
Leasing Co: The Forbes Company
Developer/ Owner: Miami Worldcenter Associates, LLC & The Taubman Company
Stories: 3

5. Esplanade (19505 Biscayne Blvd)
Size: 215,000 SF
Completion Date: Q3 2019
Developer/ Owner: Seritage Growth Properties
Stories: 3

6. Walmart (12500 SW 152nd St)
Size: 158,000 SF
Completion Date: Q1 2020
Developer/ Owner: Ram Realty
Stories: 1

7. A-2 (1870 NW 117th Pl)
Size: 145,790 SF
Completion Date: Q2 2019
Developer/ Owner: Stiles Realty
Stories: 1

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

12 Month Deliveries in SF: 1.2 M
12 Month Net Absorption in SF:
526,000 SF 
Vancancy Rate:
12 Month Rental Growth: 4.0%

Vacancy rates in the South Florida commercial real estate market have stayed around 3-4% consistently for over 4 years now, even with rental rates reaching historic highs. Miami-Dade County continues to lead rental rates in the area at $37.97/ sf, opposed to Broward County at $20.95/ sf, and Palm Beach County at $24.06/ sf respectively.

Youfit Health Club Miami FL


1. Shoppes at Cresthaven (2601-2675 S Military Trl) – West Palm Beach, FL
 Presidente Supermarket
Size: 55,025 SF
Landlord: Jimmy S. & Nancy Huang
Landlord Rep: John Fitzgerald & Kim Fitzgerald

2. Mall of the Americas (7795 W Flagler St) – Miami-Dade, FL
Size: 55,000 SF
Landlord: Sterling
Landlord Rep: Adrian Jimenez & Eddy Solera

3. Shoppes at Beacon Lake (NW 117th Pl & 14th St) – Miami-Dade, FL
 City Furniture
Size: 53,044 SF
Landlord: Stiles
Landlord Rep: N/A
Space Type: Community Center
Lease Type: New

4. Monarch Town Center (NWC Flamingo Rd and Miramar Pkwy) – Miramar, FL
Tenant: Publix
Size: 48,387 SF
Landlord: Stiles
Landlord Rep: Mike Carpenter & Dan Coyle

5. Ft Lauderdale Plaza (7342- 7362 W Commercial Blvd) – Lauderhill, FL
Size: 44,450 SF
Landlord: Kimco Realty Corp
Landlord Rep: Susanna Hernandez-Hazzi
Tenant Rep: Ross Waters, Atlantic Retail

6. Westland Promenade (3895 W 20 Ave) – Hialeah, FL
Size: 40,040 SF
Landlord: Sterling
Landlord Rep: Adrian Jimenez & Eddy Solera

7. Florida City Centre (33590 S Dixie Hwy) – South Dade, FL
Size: 30,038 SF
Tenant: Best Buy
Space Type: Retail Freestanding
Lease Type: Renewal

8. Met Square (300 SE 3rd Avenue) – Downtown Miami, FL
Size: 15,000 SF
Tenant: Del Frisco’s Double Eagle Steakhouse
Space Type: Neighborhood Center
Lease Type: New

9. Three MiamiCentral (161 NW 6th Street) – Downtown Miami, FL
Size: 10,000 SF
Tenant: Le Estacion American Brasserie
Space Type: Regional Mall
Lease Type: New

10. Lincoln Road Mall (351 Lincoln Road) – Miami Beach, FL
Size: 9,707 SF
Tenant: Gymage
Space Type: Super Regional Mall
Lease Type: New

See Top Retail Leases in South Florida Q1 2019

Data sources: MMG Equity Partners, CoStar, and Colliers 

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