South Florida Retail Summary (Q3 2018)

Nov 23
South Florida Retail Summary (Q3 2018)

Market Snapshot for South Florida Retail

A summary of the highlights, trends, and current market activity of Q3 2018 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 Q3 2018 Miami-Dade County’s vacancy rate moved up for a second consecutive quarter to 4.2% from 3.8% in Q2 2018, with the asking rate per sq. foot moving down a bit to an average of $36.86, up from $37.51 in contrast to Q2. Meanwhile, the absorption rate moved from 283,314 in Q2 to -291,415 in Q3, which represents a -523,718 SF change.

The key transaction highlights in Q3 are: Asana Partners acquiring Sunset Harbour Shops for $68.75 million with the following tenants: Lucali, Flywheel Sports, Icebox Café, Barry’s Bootcamp, NaiYaRa, Dirt, Panther Coffee, Stiltsville and Ofa. The 61,400 SF property is 100% leased and located in Miami Beach, FL. Another notable transaction is Blackstone purchasing Vista Plaza (98,194 SF) for $34.5 million in Miami Lakes.

About Asana Partners: Asana Partners was founded by a trio of industry vets: Terry Brown, Sam Judd, and Jason Tompkins. It is a real estate investment company that specializes in creating value via acquisition, enhancement, and operation of distinct retail properties in “dynamic urban markets” in the USA. In their own words, their “balanced approach to retail real estate investment optimizes long-term risk adjusted returns.”

Investor appetite remains strong given the shortage of listings straining activity.  From my vantage point, cap rates for core product and smaller price-point unanchored strips remain compressed.  There does appear to have been a meaningful softening in cap rates for non-core grocery anchored product and larger anchored deals that do not have a grocer.  Leasing activity for well-positioned retail remains strong with the new grocers entering the market being among the most active tenants competing for space.”

Gabriel Navarro, Principal

KEY STATS: Miami-Dade

  • Vacancy: 4.2% (Compared to 3.8% in Q2 2018, +0.4% change)
  • Absorption: -291,415 (Compared to 283,314 in Q2 2018, -574,729 change)
  • Asking rate PSF: $36.86 (Compared to $37.51, -$0.65 in Q2 2018)


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. 

Sunset Harbour Shops Miami Florida MMG Equity Partners

1. Sunset Harbour Shops, 1930 Bay Rd (Miami Beach, FL)
Buyer: Asana Partners
Rentable Building Area: 61,400 SF
Price: $68,750,000
Price/ SF: $1,120

2. Vista Plaza, 6400 NW 186th St (Miami Lakes, FL)
Buyer: Blackstone
Rentable Building Area: 98,194 SF
Price: $34,500,000
Price/ SF: $351

3. Former Toys R Us Store DE, 8703 – 8325 S Dixie Hwy (Kendall, FL)
Buyer: Arnaldo Bomnin
Rentable Building Area: 58,431 SF
Price: $25,000,000
Price/ SF: $428

4. 200 East Flagler (Downtown Miami, FL)
Buyer: Stambul
Rentable Building Area: 46,912 SF
Price: $19,750,000
Price/ SF: $421

5. 2641 NW 5th Avenue (Wynwood, FL)
Owner: Tristar Capital
Size: 34,773
Price: $18,000,000
Price/ SF: $518


Properties Currently Under Construction: 104 
Total Size:
4,855,694 SF 
Percent of Inventory:
Preleased: 85.2%

There are currently 104 retail properties under construction in the Miami market representing 4.8M square feet of new product. The following are the top 5 largest retail projects currently under development.

Miami Worldcenter in Florida

1. 15000 Biscayne Blvd – Northeast Dade
Size: 630,950 SF
Preleased: 100%
Completion Date: Q1 2019
Leasing Co: N/A
Developer/ Owner: Turnberry Associates

2. 181 S Bryan Rd – Fort Lauderdale
Size: 500,000 SF
Preleased: 96%
Completion Date: Q2 2019
Leasing Co: Kimco Realty Corporation
Developer/ Owner: N/A

3. Miami Worldcenter (NE 1st Ave)
Size: 450,000 SF
Completion Date: Q2 2019
Leasing Co: The Forbes Company
Developer/ Owner: Miami Worldcenter Associates, LLC & The Taubman Company

4. Donald Ross Rd – North Palm Beach
Size: 400,000 SF
Preleased: 100%
Completion Date: Q4 2019
Leasing Co: Brock Development
Developer/ Owner: Brock Development

5. 251 S Dixie Hwy – Coral Gables
Size: 300,000 SF
Preleased: 100%
Completion Date: Q3 2020
Leasing Co: NP International
Developer/ Owner: NP International

Other Notable Construction Projects: 

Crystal Lakes Shopping Center (Homestead, FL)
Size: 85,000 SF
Completion Date: Q4 2018
Developer/ Owner: MMG Equity Partners


Vacancy rates in the South Florida commercial real estate market have stayed around 3-4% consistently for over 3 years now, even with rental rates reaching historic highs. Miami-Dade County continues to lead rental rates in the area at $36.86/ sf, opposed to Broward County at $21.01/ sf, and Palm Beach County at $23.76/ sf respectively.

Floor & Decor South Florida Notable Lease Transactions MMG Equity Partners1. 8787 SW 124th Ave (Kendall, FL)
 Floor & Décor
Size: 82,311 SF
Landlord: Berkowitz
Landlord Rep: Michael Berkowitz
Tenant Rep: Melody Spano

2. 3757 Military Trail (Jupiter, FL)
Size: 30,900 SF
Landlord: Konover
Landlord Rep: Zach Zeldman

3. 3350 N University Dr (Cooper City, FL)
 Lucky’s Market
Size: 30,000 SF
Landlord: Diversified Cos
Tenant Rep: John Ellis

4. 499 NE Spanish River Blvd (Boca Raton, FL)
 Lucky’s Market
Size: 25,500 SF
Landlord: Cinderella Properties
Landlord Rep: Peter Wolff
Tenant Rep: John Ellis

5. 8211 West Flagler (West Miami, FL)
Size: 24,840 SF
Landlord: Kimco
Landlord Rep: Suzie Hazzi
Tenant Rep: Christy Stross

6. 12528 SW 88 St (Kendall, FL)
 Lucky’s Market
Size: 23,000 SF
Landlord: Sterling
Landlord Rep: Adrian Jimenez, Eddy Solera
Tenant Rep: John Ellis

7. 12100 Miramar Parkway (Kendall, FL)
Size: 20,535 SF
Landlord: Kite
Landlord Rep: Ryan Joyce
Tenant Rep: Lindsey Panke

Data sources: CoStar and Colliers 

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