South Florida Retail Summary: Leases, Sales & Construction Projects

Jun 08
South Florida Retail Summary: Leases, Sales & Construction Projects

Market Snapshot for South Florida Retail

A summary of the highlights, trends, and current market activity 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.

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

In Q4 2019 Miami-Dade County’s vacancy rate stayed even from Q4 2019: 4.4% to Q1 2020: 4.4%. The asking rate per sq. foot moved down to an average of $38.33, which is -$0.09 per sq. foot compared to Q4’s average of $38.42/ sq. foot. One year ago, the asking rate was $37.09 / sq. foot. Meanwhile, the absorption rate moved up from 112,679 in Q4 2019 to 1,021,401 in Q1 2020, which represents a +908,722 SF change quarter-to-quarter.

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.

Full List of Top Transactions for Q4 – Q1 2019 & Top Retail Sales for 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

KEY RETAIL STATS: Miami-Dade (Q1 2020)

  • Vacancy: 4.4% (Even compared to 4.4% in Q4 2019)
  • Absorption: 1,021,401 (Compared to 112,679 in Q4 2019, +908,722 change)
  • Asking rate PSF: $38.33 (Compared to $38.42, -$0.09 change)


Sales Comparables: 345 (337 in Q4 2019)
Average Cap Rate:
6.4% (6.3% in Q4 2019)
Average Price/ SF:
$335 ($452 in Q4 2019)
Average Vacancy at Sale: 4.4% (3.4% in Q4 2019)

Sunset Harbour Shops Miami Florida MMG Equity Partners


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
12,379 SF
Price/ SF: 
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


Top Transaction Highlight in Q4 2019: The Shops at Merrick Park in Coral Gables tops the list of top retail commercial real estate property sales transactions in South Florida for Q4 2019. It outranks the next sale transaction by nearly $600M, at a total price of $620,000,000. The sale represents a cost of $1,496 / square foot, and it was acquired by Brookfield Property REIT and JV Cigna.

1. Shops at Merrick Park (358 San Lorenzo Ave) – Coral Gables
Price: $620,000,000
Size: 414,470 SF
Price/ SF: $1,496
Buyer: Brookfield Property REIT / JV Cigna
Property Type: Lifestyle Center

2. Doral Plaza Shopping Center (9709-9779 NW 41st St)
Price: $62,615,244
Size: 100,671 SF
Price/ SF: $622
Property Type: Retail Shopping Center

3. Homestead Pavilion (2457 NE 10th Ct)
Price: $44,311,633
Size: 209,097 SF
Price/ SF: $212
Property Type: Retail Shopping Center

4. Walgreens (509 Collins Ave) – Miami Beach
22,875 SF
Price/ SF: 

Property Type: 
Storefront Retail

5. Nissan (17305 S Dixie Hwy)
Price: $31,100,000
Size: 72,333 SF
Price/ SF: $430
Property Type: Auto Dealership

6. 8325 S Dixie Hwy
Price: $25,000,000
Size: 42,000 SF
Price/ SF: $595
Property Type: 

7. Brickell Flatiron Retail – Brickell
Price: $22,500,000
Size: 24,800 SF
Price/ SF: $907
Buyer: Elysee Investments
Property Type: Groundfloor Retail

8. Bomnin Chevrolet Homestead (1075 SE 6th Ave) – South Dade
Price: $19,000,000
Size: 60,870 SF
Price/ SF: $312
Buyer: Bomnin Automotive
Property Type: Auto Dealership

9. Majestic Plaza (8150 SW 8th Street) – West Miami
Price: $13,000,000
Size: 36,520 SF
Price/ SF: $255
Buyer: Offer Ramim
Property Type: Storefront Retail

10. The Centre at Cutler Bay (18901 SW 106th Ave)
Price: $9,300,000
Size: 63,631 SF
Price/ SF: $145
Buyer: MMG Equity Partners
Property Type: Freestanding Retail


Top Transaction Highlight in Q3 2019: The high-profile property in Miami Beach (on the corner of Collins Ave and Fifth St) sold for $33 million, a bit over its last transaction price in 2014, according Marcus & Millichap. The retail property sold for nearly $1,500 / square foot. Records state that D & R Design District LLC, the seller, purchased the Miami Beach property for $32 million in 2014. The buyer, an LLC, was represented by brokers a Marcus & Millichap.

1. Walgreens (509 Collins Ave) – Miami Beach
Price: $33,100,000
Size: 22,875 SF
Price/ SF: $1,445
Buyer: Allied Partners Inc
Property Type: Storefront Retail

2. Staples (2121 Biscayne Blvd) – Biscayne Corridor
Price: $14,000,000
Size: 20,388 SF
Price/ SF: $687
Buyer: Crescent Heights
Property Type: Freestanding Retail

3. Gateway Shopping Center (9000 NW 25th St) – Miami Airport
Price: $14,000,000
Size: 32,654 SF
Price/ SF: $429
Buyer: Pacheco Group
Property Type: Neighborhood Center

4. 2900 Biscayne Blvd – Biscayne Corridor
Price: $6,750,000
Size: 5,200 SF
Price/ SF: $1,298
Buyer: Crescent Heights
Property Type: Storefront Retail

5. Sunshine Kia (17120 S Dixie Hwy) – South Dade
Price: $6,400,000
Size: 20,446 SF
Price/ SF: $313
Buyer: Mario Benedetti, South Dade Toyota
Property Type: Auto Dealership


Top Transaction Highlight in Q2 2019: Publix, the grocery store chain based in Florida, purchased Doral Plaza Shopping Center from ShopCore Properties, based in Chicago. Doral Plaza is 128,255 square feet total, and Publix acquired the entire property for $70 million ($546 / sq ft). The other tenants currently occupying spaces in the plaza are B of A, Chase Banks, GNC, and Supercuts.

Publix is in the process of purchasing retail centers where they are tenants as a means of becoming their own landlord. They owned the property for nearly 32% of their stores in 2017, and are currently acquiring 30 stores a year. They now operate over 1,200 locations nationwide.

South Florida Retail Market Publix

1. Doral Plaza (9705 NW 41st St) – Miami Airport
Price: $70,000,000
Size: 128,255 SF
Price/ SF: $546
Buyer: Publix
Property Type: Shopping Center

2. Homestead Pavilion (2400 NE 10th Court) – South Dade, FL
Price: $62,241,666
Size: 302,346 SF
Price/ SF: $205
Buyer: CREC Capital, MMG Equity Partners, Highline Real Estate
Property Type: Neighborhood Center

3. 318 Lincoln Road – Miami Beach, FL
Price: $20,500,000
Size: 23,792 SF
Price/ SF: $862
Buyer: RFR Realty
Property Type: Storefront Retail

4. 3001 Aventura Blvd – Aventura, FL
Price: $13,000,000
Size: 32,324 SF
Price/ SF: $402
Buyer: RK Centers
Property Type: Shopping Center

5. 3925 NE 2nd Ave – Wynwood Design Disrict
Price: $12,000,000
Size: 8,304 SF
Price/ SF: $1,445
Buyer: Alex Karakhanian

Toys R Us Kendall South Florida Retail Report 2019


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.

This CRE sale 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

Downtown Dadeland South Florida Retail Report 2019


1. Doral Plaza Shopping Center (9709-9779 NW 41st St)
Price: $62,615,244
Size: 100,671 SF
Price/ SF: $622
Cap Rate: 4.6%
Vacancy: 0%

2. Homestead Pavilion (2457 NE 10th Ct)
Price: $44,311,633
Size: 209,097 SF
Price/ SF: $212
Cap Rate: 7.3%
Vacancy: 0%

3. Walgreens (509 Collins Ave) – Miami Beach
22,875 SF
Price/ SF: 
Cap Rate:

4. Nissan (17305 S Dixie Hwy)
Price: $31,100,000
Size: 72,333 SF
Price/ SF: $430
Cap Rate: Not Listed
Vacancy: 0%

5. 8325 S Dixie Hwy
Price: $25,000,000
Size: 42,000 SF
Price/ SF: $595
Cap Rate: Not Listed
Vacancy: 0%

See South Florida’s Top Shopping Center Transactions 2018

RETAIL PROJECTS STATISTICS: South Florida (Past 12 Months)

Properties Currently Under Construction: 49 (49 in Q4 2019)
Total Size:
2,321,544 (2,970,285 SF in Q4 2019)
Percent of Inventory:
1.7% (2.3% in Q4 2019)
Preleased: 75.4% (83.9% in Q3 2019)

There are currently 49 retail properties under construction in the Miami market representing nearly 2.5M square feet of new product. The following are the top 5 largest retail projects currently under development.

Miami Worldcenter in Florida

RETAIL CONSTRUCTION PROJECTS: South Florida (Past 12 Months)

1. 9700 Collins Ave
Size: 340,387 SF
Completion Date: Q1 2024
Developer/ Owner: Bal Harbour Shops / Whitman Family Development
Stories: 2

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

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

4. The Plaza Coral Gables (3011 Ponce de Leon Blvd)
Size: 161,000 SF
Completion Date: Q2 2021
Developer/ Owner: Agave Ponce, LLC / Agave Holdings
Stories: 2

5. Walmart (12500 SW 152nd St)
Size: 158,000 SF
Completion Date: Q3 2020
Developer/ Owner: Ram Realty
Stories: 1

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

12 Month Deliveries in SF: 1.3 M
12 Month Net Absorption in SF:
740,000 SF 
Vancancy Rate:
12 Month Rental Growth: 1.6%

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 $38.33/ sf, opposed to Broward County at $22.22/ sf, and Palm Beach County at $22.57/ sf respectively.


1. Palm Springs Mile (700 W 49th St) – Medley / Hialeah
Ashley HomeStore
Size: 100,000 SF
Lease Type: New
Space Type: Freestanding

2. Mall of the Americas (7795 W Flagler St) – Miami Airport
Size: 52,000 SF
Lease Type: New
Space Type: Regional Mall

3. Block 55 – Overtown – Downtown Miami
Size: 51,088 SF
Lease Type: New
Space Type: Mixed-Use

4. RK California Club (850 Ives Dairy Rd) – Northeast Dade
Size: 46,000 SF
Lease Type: New
Space Type: Shopping Center

5. 10700 Biscayne Blvd
Size: 43,000 SF
Lease Type: New
Space Type: Freestanding

See Top Retail Leases in South Florida Q1 2020

Data sources: MMG Equity Partners, CoStar, and Colliers 

4 responses to “South Florida Retail Summary: Leases, Sales & Construction Projects”

Leave a Reply

Your email address will not be published. Required fields are marked *