South Florida Retail Summary Q3 2019: Leases, Sales & Construction Projects

Nov 05
South Florida Retail Summary Q3 2019: Leases, Sales & Construction Projects

Market Snapshot for South Florida Retail

A summary of the highlights, trends, and current market activity of Q3 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 Q3 2019 Miami-Dade County’s vacancy rate raised +0.1% from Q2 2019: 4.3% to Q3 2019: 4.4%. The asking rate per sq. foot moved up to an average of $39.75, which is +$0.56 per sq. foot compared to Q2’s average of $39.16/ sq. foot. One year ago, the asking rate was $35.54 / sq. foot. Meanwhile, the absorption rate moved up from 149,929 in Q2 2019 to 470,942 in Q3 2019, which represents a +321,013 SF change quarter-to-quarter.

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.

Full List of Top Transactions for Q3 – 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 (Q3 2019)

  • Vacancy: 4.4% (Even compared to 4.3% in Q2 2019)
  • Absorption: 470,942 (Compared to 149,929 in Q2 2019, +321,013 change)
  • Asking rate PSF: $39.75 (Compared to $39.16, +$1.56 in Q2 2019)


Sales Comparables: 376
Average Cap Rate:
Average Price/ SF:
Average Vacancy at Sale: 4.6%

Sunset Harbour Shops Miami Florida MMG Equity Partners


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. 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: 52
Total Size:
2,880,001 SF 
Percent of Inventory:
Preleased: 80%

There are currently 52 retail properties under construction in the Miami market representing 2.8M 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: 800,000 SF
Completion Date: Q4 2019
Developer/ Owner: Turnberry Associates
Stories: 6

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

3. 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

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

5. 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

6. Homestead Station (4-100 S Krome Ave)
Size: 145,300 SF
Completion Date: Q4 2019
Developer/ Owner: Axiom Construction Co / City of Homestead FL
Stories: 5

7. 1212 Lincoln
Size: 92,725 SF
Completion Date: Q4 2019
Developer/ Owner: Crescent Heights / Alton Road Investments
Stories: 5

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 $39.75/ sf, opposed to Broward County at $23.38/ sf, and Palm Beach County at $22.62/ sf respectively.

Kendall Village Regal Cinemas South Florida Retail Leases 2019

*Regal Cinemas renews lease for 70K SF location at Kendall Village Retail Center


1. Kendall Village Retail Center (8595 SW 124th Ave) – Kendall, FL
Regal Cinemas
Size: 70,271 SF
Lease Type: Renewal
Space Type: Community Center

2. Coconut Grove Metrorail Station (2880 SW 28th Lane) – Coconut Grove, FL
Size: 49,658 SF
Lease Type: New
Space Type: Transit Oriented Development

3. RK California Club North Miami (850 – 980 Ives Dairy Road)- Northeast Dade, FL
Big Lot’s
Size: 42,500 SF
Lease Type: New
Space Type: Community Center

4. 22 Flagler Street – Downtown Miami
Size: 34,192 SF
Lease Type: New
Space Type: Freestanding

5. 1400 NW North River Drive – Miami, FL
Old Navy
Size: 15,000 SF
Lease Type: New
Space Type: Retail Storefront

See Top Retail Leases in South Florida Q3 2019

Data sources: MMG Equity Partners, CoStar, and Colliers 

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