Miami Commercial Investment Activity Upticks, Aided by Low Vacancies

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According to the Miami Association of Realtors’ Realtor Commercial Alliance, Miami’s commercial vacancy rates continue to rank among the lowest in Florida, leading to more local investment from global companies and investors.

Miami’s vacancy rates for office (14.9 percent), industrial (5.3 percent), retail (6.3 percent), and multifamily (4.4 percent) are the lowest among major cities in Florida, according to a May 2015 Commercial Outlook report from the National Association of Realtors (NAR) and Reis, Inc., a leading provider of commercial real estate market information. Each of Miami’s commercial sectors are performing better than the U.S. average, except for multifamily which is 0.1 percent lower. The national vacancy rates in May were 15.6 percent for office, 8.4 percent for industrial, 9.6 percent for retail and 4.3 percent for multifamily, according to NAR and Reis.

“One of the world’s top global cities, Miami has become a launching pad for new industries,” said Barbara Tria, the 2015 Miami Commercial Alliance President. “Technology companies and other businesses are moving to Miami largely because of the region’s top-tier cultural offerings, outdoor lifestyle, and affordability compared to other major cities around the globe.”

Miami Office Market

Miami’s 14.9 percent office vacancy rate in May ranks as the 21st lowest out of 82 major U.S. cities, according to the NAR and Reis report. New York leads the nation at 8.9 percent. Statewide, Miami’s office vacancy rate is performing better than Florida’s major cities. The Sunshine State’s other major metropolitans had the following rates: Fort Lauderdale (18.6 percent), Jacksonville (20.4 percent), Orlando (16.5), Palm Beach (16.5) and Tampa (19.7). The national average is 15.6.

South Florida’s growing, multilingual workforce is one reason for its low office vacancy rate. Miami-Dade County added 33,700 jobs across several sectors from April 2014 to April 2015, a 3.1 percent increase, according to job numbers released May 22. Miami had the third-largest job gain in Florida behind Orlando and Tampa. Miami’s unemployment rate from April 2014 to April 2015 decreased by 0.7 percentage points, to 6.2 percent from 6.9 percent.

Miami Industrial Market

Miami’s industrial vacancy rate of 5.3 percent is the third-lowest in the nation among the 82 major American cities studied by NAR and Reis. Only Orange County (Calif.) and Los Angeles performed better than Miami in the industrial sector in May, registering vacancy rates of 3.4 and 3.6 percent, respectively. Florida’s other major metropolitans had the following rates: Fort Lauderdale (8.2), Jacksonville (6.9), Orlando (10.3), Tampa/St. Petersburg (7.8), and Palm Beach (5.5). The national average is 8.4.

Miami International Airport and PortMiami are two of South Florida’s international trade successes. Miami International ranks as the top airport in the U.S. for international freight, and the ninth-best airport for foreign cargo in the world. In 2013, Miami International handled 2.1 million tons of total airfreight, of which 88 percent was international freight.

PortMiami is the top-ranked container cargo port in Florida with 900,000 TEUs handled each year. The port has an opportunity to expand its international business as it is deepening its channel from its current 42-foot depth to 50-52. When the deep dredge project is completed, PortMiami will be the only U.S. port south of Norfolk, Va. that can accommodate the new, mega cargo vessels that will pass through the expanded Panama Canal.

Miami Retail Market

Miami has the 15th lowest retail vacancy rate among U.S. major cities, according to the NAR and Reis report. Miami’s 6.3 percent rate is considerably lower than Florida’s other large metropolitans. Fort Lauderdale (9.3 percent), Jacksonville (12.9), Orlando (11.0), Palm Beach (9.5) and Tampa (10.6) are higher than Miami. The national average is 9.6.t”>

Miami’s tourism and multilingual employment base are just two reasons why major developers are bringing new retail ventures to the region. Earlier this year, the company that owns and runs the largest mall in America announced plans to build the nation’s largest shopping mall in northwestern Miami-Dade, a roughly 200-acre entertainment complex with submarines, a Legoland, sea lions and an artificial ski slope. American Dream Miami is projected to cost as much as $4 billion to build.

Brickell City Centre and The Mall at Miami World Center are two other significant Miami retail ventures. At Brickell City Centre, Hong Kong developer Swire Properties will deliver 500,000 square feet of retail space anchored by Saks Fifth Avenue by late 2016. The Mall at Miami Worldcenter, in the heart of downtown, will complete 765,000 square feet of restaurant, retail and entertainment space by 2017.

Miami Multifamily Market

The vacancy rate for Miami’s multifamily market is tied for 38th among 82 major U.S. metros, according to the NAR and Reis report. Miami’s 4.4 percent multifamily vacancy rate is the lowest in the state. Fort Lauderdale (5.2 percent), Jacksonville (7.0), Orlando (6.1), Palm Beach (5.6), and Tampa (5.0) all have higher rates. The national average is 4.3 percent.

 

Source: WPJ

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Developers Propose Two Big Hotel Projects In Miami

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Plans for two Miami hotel projects with hundreds of rooms between them have been submitted for review.

A rendering for a hotel proposed at 7400 S.W. 88th St. in Miami

A rendering for the hotel proposed at 7400 S.W. 88th St. in Miami

Norwich Dade Hotel Group LLC, a company affiliated with New Hampshire-based company Norwich Partners, submitted plans for a 20-story Marriott hotel in downtown Kendall.

The 19-page application proposes 300 hotel rooms and 155 valet-only parking spaces at 7400 S.W. 88th St. in Miami. Renderings for the hotel show signs for two Marriott brands: AC Hotels and Residence Inn. If approved, the property would be built adjacent to the Dadeland Mall. The renderings, submitted May 15 with the application, were designed by Nichols, Brosch, Wurst, Wolfe & Associates.

Grapeland Hospitality Group has proposed a Staybridge Suites near Miami International Airport with 153 rooms and possibly a restaurant and one other commercial space on the property. The Palmer Lake-area development would be located at the corner of N.W. 37th Avenue and N.W. 25th St. in Miami, which is currently vacant. The application includes 142 parking spaces and a swimming pool. The renderings were designed by Architect J. Antonio Rodriguez Tellaheche.

The Miami-Dade County Department of Regulatory and Economic Resources Development Services is currently reviewing the applications.

 

Source: SFBJ

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North Miami Beach: A ‘Hidden Gem’ In The Real Estate Market

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A new strategic vision, competitive pricing and a less hectic lifestyle are three reasons North Miami Beach is emerging as an attractive location for new residential and commercial investment.

Both the scenic Biscayne Boulevard corridor and the 163rd Street commercial district are in the early stages of an exciting transformation that will bring many positive benefits and developments to the city.

NorthMiamiBeachHiddenGem-ChartLed by Mayor George Vallejo, the city of North Miami Beach adopted a strategic plan in September that sets guidelines for real-estate development, design and zoning for the next 15 years. The “visioning” framework, which was guided by two consulting firms, encourages new mixed-use projects and high-end residential towers in appropriate locations. It also includes funds for a comprehensive parks master plan, which will make the city an even more appealing place to live.

Already, a new wave of commercial development is under way, including plans for new high-end restaurants and a hotel along West Dixie Highway south of the roadway congestion in Aventura. Gil Dezer, president of Dezer Developers in Sunny Isles Beach, purchased the Intracoastal Mall for $63.5 million last year and plans to open a luxury iPic theater in the mall this summer.

On the residential side, North Miami Beach is becoming a destination of choice for both domestic and international buyers seeking an alternative to higher-priced properties in more congested areas along the beach, in Aventura or in downtown Miami. Because the redevelopment of North Miami Beach is just in the early stages, pricing for luxury residences is more attractive than other markets that have already experienced a run-up in values.

Marina Palms Yacht Club & Residences

Marina Palms Yacht Club & Residences

For example, the sales prices for the second tower of Marina Palms Yacht Club & Residences, now under development on Biscayne Boulevard, averages $550 per square foot. To the north, a residence in a new Aventura building would be $850 per square foot, and the price for oceanfront units could be double or triple that rate.

Looking back at the last few decades, it’s clear that South Florida communities are at varying stages of the real-estate cycle. For instance, South Beach real estate was a bargain in the 1980s, before a wave of new hospitality, retail and residential investment created one of the world’s most popular (and expensive) urban resort markets.

Downtown languished until the early 2000s, when new residential and mixed-use developments exploded on the scene. After the recession, developers were quick to pick up unfinished projects and market them on an all-cash basis to affluent buyers from Latin America and Europe.

Meanwhile, North Miami Beach has remained a quiet, suburban city with about 40,000 residents and great recreational amenities, such as Greynolds Park and Oleta River State Park. In addition, the Biscayne Bay campus of Florida International University is conveniently located in nearby North Miami.

With its new strategic plan in place and a growing flow of commercial and residential real-estate investment, North Miami Beach is entering a new era, just as other Miami-Dade communities have evolved in the past.

Now the world is about to discover the new “hidden gem” in South Florida’s real-estate market. It’s an exciting time to participate in the transformation process, which will create a bright future for North Miami Beach and its residents.

 

Source: Miami Herald

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Is Brickell’s Biggest Hole Getting Miami’s Tallest Building?

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Scrapped Project

Scrapped Project

The Chinese consortium that bought the former Capital Brickell Place site, which has been sitting empty for years and as of right now is the biggest open hole in the ground in Brickell, is claiming on its website that they are building the tallest building in Miami there, according to The Next Miami.

The website is only in Chinese though,and the website of their Chinese/ American partner isn’t revealing much. Either way, until it’s verified, it’s only rumor. They also supposedly claim to have gained “preliminary approval” for the project, although no details are given.

 

Source: Curbed Miami

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Two Coconut Grove Office Buildings Sold For $42M

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BayviewPlazaTwo office buildings in Coconut Grove were sold for a combined $42 million, commercial brokerage Marcus & Millichap announced Thursday.

The first, dubbed the Bayview Executive Plaza, is a 57,155-square-foot building at 3225 Aviation Avenue. It is occupied by the Femwell Group Health, Wolfberg Alvarez & Partners and the accounting firm Pinchasik Yelen Muskat Stein.

The second, named Continental Plaza, is a, 80,380-square-foot building at 3250 Mary Street. It’s across the street from Park Grove, an upcoming mixed-use development that has plans for three 20-story condo towers with retail and office space.

Both were purchased by a company titled Allegra Holding, and both were sold by TA Associates Realty.

Douglas Mandel and Benjamin Silver of Marcus & Millichap brokered the sale for both the buyer and the seller. “These buildings are well positioned to reap the benefits associated with the explosive growth of new developments in The Grove, and the buyer will be able to take advantage of future spikes in demand that will push rental rates to new highs,” Mandel said in a statement.

 

Source: The Real Deal

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Developer Plans Live/Work Lofts And Boat Storage Project On Miami River

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A group of developers is preparing a plan for live/work loft units and a boat storage facility with a marina along the Miami River.

Chapman Ducote on a Delta Powerboats yacht.

Chapman Ducote on a Delta Powerboats yacht.

Chapman Ducote, the managing member of the development group, said he’s planning two buildings at 600 N.W. Seventh Ave. One would be a dry stack for boat storage attached to a high-end marina. The other building would have live/work lofts with high ceilings and a modern look, in addition to some retail, he said. While the size of the buildings aren’t finalized, Ducote said the mixed-use building would be eight to 12 stories tall.

“There is a beautiful neighborhood on the other side of the canal from us and we want to be in tune with what works in the neighborhood,” Ducote said. “We will remove a boat yard that isn’t very pretty and replace it with a nice modern building.”

Miami Boat Storage, an Aventura-based partnership between AL US Investments, Quillpoint Capital Investments and Ducote, recently bought the 47,152-square-foot lot for $3.65 million to save it from foreclosure. Ducote is also the president and CEO of Miami Beach-based credit card processing firm Merchant Services LTD, a professional racer on the American Le Mans series, and a major investor Delta Powerboats, a Swedish company that builds yachts fully out of carbon fiber.

“The live/work concept, particularly in other cities, is starting to work and get some legs behind it,” Ducote said. “You have residential and office in the same dwelling with a wall separating the two.”

 

Source: SFBJ

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A Peek At Downtown Miami’s Future Skyline

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Miami’s Downtown Development Authority has released a video that provides a glimpse of what the skyline will look like when the current crop of construction projects have been completed.

The video helps to visualize the massing of Miami’s evolving skyline by showing buildings that are both proposed and under construction. Buildings where construction is underway are represented in blue, while planned and proposed towers are represented in green and purple, respectively.

It doesn’t include every project, and isn’t exact about height. Fast-rising Edgewater is mostly ignored. It also doesn’t show detailed renderings, as Brickell Magazine did last year.

Below is the Miami DDA video rendering:

 

 

Source: The Next Miami

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Miami Beach Sea Level Rise Conference Targets Future Developments

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It’s up to developers and city officials to protect projects in Miami Beach from the threat of global sea level rise, architect Reinaldo Borges warned an audience gathered inside a conference room at the W South Beach on Thursday.

“Developers need to change their perspective,” Borges said. “They go in with a short-term investment mentality. That mindset has to change.”

Business leaders discuss sea level rise at the Miami Beach Community Resiliency Summit

Business leaders discuss sea level rise at the Miami Beach Community Resiliency Summit

Borges, a principal of Borges & Associates Architects, lamented that hotel projects his firm worked on like the Royal Palm Miami Beach and the Bentley Beach Hotel will be negatively impacted by sea level rise. Before new projects break ground, Borges suggested city officials find ways to provide developers with incentives if they build structures at a higher elevation.

The Miami-based architect was part of a panel of business community leaders at the Miami Beach Community Resiliency Summit Friday morning. Other speakers such as Wendy Kallergis, president and CEO of the Greater Miami and the Beaches Hotel Association, and Gabriole Van Bryce, a member of the association’s sustainable hospitality council, talked about successful efforts to convince builders and owners to make their properties greener.

“We have really helped hotels reduce the impact of climate change by reducing greenhouse gas emissions,” Van Bryce said. “We want to further reduce the effects of greenhouse emissions by promoting a cool roof initiative to place local gardens on rooftops.”

Al Roker, host and weatherman for NBC’s “Today Show,” kicked off the summit by providing attendees with a few cold hard facts about climate change. “In the next 50 years, Miami’s high tide will be five feet higher,” Roker said. “At the city’s 100th anniversary concert last night, I told the crowd, ‘I hope you’re enjoying this now because where you are standing now will be underwater one day.’”  The popular morning show personality also said the mainstream media made a mistake by coining the term “global warming,” instead of using “climate change.”

Following his presentation, Roker told The Real Deal that developers, city officials, and residents have to work together to address the real threat of climate change. “Everybody should be concerned,” Roker said. “Are buildings ready? Is the infrastructure ready? Those are all real concerns condo owners, private property owners, businesses and everybody should be concerned about.”

 

Source: The Real Deal

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The Evolution Of The Miami River District

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Miami’s Health District is seeing more activity.

A famed chef is launching a new concept in the University of Miami’s Life Science & Technology Park, which made headlines when its developer, Wexford Science & Technology, bet on the neighborhood a few years ago. Miami Health District’s residential and retail projects are rising.

Where does River Landing Shops and Residents fit in? GlobeSt.com caught up with Andrew Hellinger, CEO of River Landing Development, to find out what role his project will play in the evolution of the nascent Miami River District in part two of this exclusive interview. You can still read part one: Is Miami’s Health District Next Big Thing?

GlobeSt.com: What role will River Landing play in the evolution of the nascent Miami River District?

Hellinger: The development will anchor the river district to the west allowing consumers, visitors and residents to enjoy life on the Miami River. River Landing’s waterfront restaurants will add to the growing roster of trendy restaurants opening and thriving in the Miami River District, including American Social, London’s Duck & Waffle, Sushi Samba, Modern Garden, The River Seafood & Oyster Bar, Seaspice, Garcia’s and Casablanca.

ADD Inc. conceived River Landing’s retail element as a series of stacked gift boxes to create a dynamic façade that complements the river while being accessible to pedestrians. Our riverwalk is designed as a linear waterfront park. The continuous linear, but meandering walking park, extends the length of the development and connects our property to the other waterfront properties in the river district.

GlobeSt.com: What kind of retail mix do you envision for River Landing? 

Hellinger: River Landing will be home to seven to eight national anchor tenants ranging from 20,000 square feet to 55,000 square feet as well as eight to 10 national and regional retailers. Specifically, River Landing will contain 315,000 square feet of national retailers, 86,000 square feet of regional and local retailers and 29,000 square feet of restaurants on its five levels.

The roster of tenants who will call River Landing home is a major supermarket, clothing retailers for men women and children, shoe stores, banks, athletic goods, electronics/ wireless providers, cinemas, entertainment options as well as casual and luxury restaurants.

 

Source: GlobeSt

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Get Ready, Shoppers: Miami’s New Mall Will Be Nation’s Biggest

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At a time when mall shopping is dwindling, there’s a plan afoot to build what would become the country’s largest shopping center, complete with a ski slope, sea lions and Legoland.

Though centered around a mall, the proposed American Dream Miami would also have a Ferris wheel, roller coaster, and 500-foot-tall observation tower. Most of it would be enclosed by a dome shown here in the artist’s rendering of the theme park. Proposed for Northwest Miami-Dade County, the project comes from the developer behind Minnesota’s Mall of America

Though centered around a mall, the proposed American Dream Miami would also have a Ferris wheel, roller coaster, and 500-foot-tall observation tower. Most of it would be enclosed by a dome shown here in the artist’s rendering of the theme park. Proposed for Northwest Miami-Dade County, the project comes from the developer behind Minnesota’s Mall of America

The $4 billion plan, as detailed by the Miami Herald, would employ 25,000 people in its 200-acre complex, which is slated to be located in Miami’s suburbs. That would make it Miami-Dade’s largest private-sector payroll, the publication noted.

The bold plan comes at a tricky time for malls, as shoppers are snubbing them in favor of Internet shopping, or simply heading to Main Street. Construction on new enclosed malls has ground to a standstill, with only one, Florida’s University Park, opening in the past decade. Given the shift in consumer trends, it may seem risky to plan such a huge undertaking, but the developer is betting that the sheer size and variety of attractions will get people hooked.

The complex is slated to offer stores and a range of attractions, such as a skating rink, a waterpark and a theme park including a roller coaster and Ferris wheel. The developer, Triple Five, is also the company behind Mall of America, which has about 4.2 million square feet and offers 520 stores and 50 restaurants. While the developer didn’t disclose the square footage of the planned Miami mall, it told the publication that the new mall will be larger than Mall of America.

“It is our intent that this project — American Dream Miami — will exceed our other world famous projects in all respects,” Triple Five said in a statement. Triple Five didn’t immediately return a request for comment.

Plans for a water park at the American Dream Miami entertainment complex include 20 different “slides and water treatments,” and the world’s tallest indoor bungee tower. Proposed for Northwest Miami-Dade, the complex would be the largest mall in the United States. Proposal by developer Triple Five

Plans for a water park at the American Dream Miami entertainment complex include 20 different “slides and water treatments,” and the world’s tallest indoor bungee tower. Proposed for Northwest Miami-Dade, the complex would be the largest mall in the United States. Proposal by developer Triple Five

The outsized mall comes at time when enclosed malls are shutting down, becoming ghostly relics of a bygone retail era. There’s even a site called DeadMalls.com that records the locations of razed or shuttered malls, such as downtown Rochester, New York’s Midtown Mall, which opened in 1963 as the first urban indoor mall in America. After struggling to keep tenants, the mall was closed in 2008 and demolished in 2010.

The decline of the mall has been precipitous enough that an executive with one of the largest privately held real-estate companies last year projected that the traditional mall could be dead in a decade.

But American Dream Miami isn’t aiming to be an ordinary enclosed mall. The glass-covered structure would also include luxury hotels, miniature golf, and a ski slope with 800 feet of artificial snow.

While the mall will bring more jobs to Florida, many of those will be in the types of low-paying occupations that are common in the state, such as store clerks and waitstaff. Median household income in Florida stands at about $47,000, below the U.S. median of $53,000, according to the Census.

Still, Mall of America may be breaking the mold when it comes to the twilight of the American mall. Triple Five is currently working on a $325 million expansion of Mall of America, adding a food hall and underground valet parking. The investment is aimed at pulling in 60 million annual visitors, up from 42 million currently.

 

Source: Miami Herald

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