Owners of commercial properties know the importance of maintaining high occupancy rates in order to avoid having to sell the property. That being said there are several effective and useful strategies that can be implemented in order to achieve more rewarding Miami commercial property management success. Proper pricing is a crucial aspect of enjoying excellent results when it comes to maintaining a retail outlet, industrial building, manufacturing building or office space in a continuous state of revenue generation. One of the best ways to reach this objective is to price a commercial property so that it is in-line with what the local market is currently dictating.
Strategies For Generating Interest
Current Commercial Property Market Trends
Working with a knowledgeable and professional team of property managers is often the best way to effectively price commercial real estate for lease. There are many factors that must be taken into account in this regard including the actual property appraisal as well as the current rental rates of similar commercial structures in the immediate area. Doing ample research and sampling sale prices and rental rates of other pieces of commercial real estate is essential. Being aware of current market trends in the commercial arena will help business owners to price a property at the appropriate and most logical going rate.
Curb Appeal And General Appearance
Equally important is to make certain that the curb appeal of any commercial structure is always at the highest level. Businesses, corporations and companies of all sizes that are in search of a commercial facility, retail space or office building will typically search exhaustively to find the best and most appropriate piece of real estate for their particular needs. That is why it is essential for property owners to put forth the absolute best in curb appeal and general appearance. From damaged walls to chipped paint and even leaky faucets, there are many small details that can have a big impact on a business’s decision to rent a commercial space.
Preparing a building by doing any necessary repair projects and conducting all routine maintenance at regular intervals can have a profound effect on a commercial real estate owners ability to enjoy an excellent return on investment. As a bonus tip, when taking photographs of a commercial piece of real estate it is always a good idea to ensure that there is adequate sunlight and that the exterior is exceedingly well manicured, neat and clean. Enjoying the most in terms of Miami commercial property management related services simply means choosing carefully when it comes to a manager of properties in South Florida. Consider these basic and essential elements of generating interest in a commercial property to always enjoy better financial returns.
Our very own Rene Vivo was featured on CIASF’s 2015 Industrial Market Report video. Thank you CIASF, Dixon Commercial Real Estate and 1st National Bank of South Miami for putting on a great event!
The Commercial Industrial Association of South Florida Inc., “CIASF” is a non-profit organization of business leaders involved in the development, design, construction, sales, and leasing of Industrial and Commercial Real Estate in South Florida. Click here to watch the video.
Although the market continues to improve there is concern that rental rates and sales prices are reaching a peak. This results from an increase in the supply of quality industrial buildings coming online in 2014 and sales prices of existing buildings not supported by rental rates. Some landlords are offering a Rent Abatement. Typically, tenants are able to receive one month of free rent for every three years of lease terms and two months free rent for every five years of the lease term.
The newer industrial buildings feature a minimum 30’ of clear interior height, 54’ wide column spacing allowing for 4 loading doors, rear loading truck access with large parking aprons and easy truck access. Interior improvements include T-5 high efficiency lighting systems combined with motion activated switches, EFSR sprinkler systems , windows over the loading door for natural light and high quality interior finishes in the office areas with 9 to 12’ ceiling heights.
Strongest demand is for space between 10,000 SF and 30,000 SF. Landlords should reposition larger blocks of vacant second generation space, or older 24’ clear height product and subdividing these larger vacant spaces into smaller bays in order to target smaller tenants in the market.
Unlike previous years where we noted that Miami had become a temporary storage and transportation hub, manufacturing is on the rise. Latin American companies are moving their operations to Miami-Dade for political and economic reasons. These include food processing and aviation companies. In addition, medical drug and equipment manufacturing is active with some tenants purchasing their own facilities.
The market continues to improve, with lower vacancy rates, rental rates $.50 to $1.00/SF higher than last year and continued demand for industrial space from both a rental market and purchase market perspective. Tenants seem doubtful that the new Panamax Ships/Larger Port will benefit them directly. There is the possibility of larger amounts of perishable goods coming through on the ships from South America needing cooler space.
Vivo Real Estate Group received a congratulatory letter from Governor Rick Scott for making the South Florida Business Journal’s list of top 25 commercial real estate brokerage firms.Letter from Governor to Vivo Group
Branch Banking & Trust Co. sold most of the units in the Miami Lakes Corporate Center Condominium at an 18 percent discount to its foreclosed mortgage.
The bank (NYSE: BBT) seized the 44 office condos at 14750 N.W. 77th Court in 2013 after foreclosing on New Dawn Miami Lakes’ $7.6 million mortgage.
BB&T affiliate Eagle FL I SPE recently sold the 65,000-square-foot property for $6.2 million to JIK Palmetto. Sperry Van Ness Managing Director Matthew Rotolante, Director of Sales and Operations Caroline Camus and senior advisor Eric Amat represented the bank in attracting 12 bidders for the property.
The buyer, an affiliate of Miami-based Kislak Organization, was represented by Rene Vivo and Tommy Gil of Vivo Real Estate Group. Northern Trust Co. provided a $6.65 million mortgage to the buyer.
San Francisco-based real estate investment trust Terreno has paid nearly $17 million for two Miami-Dade County warehouses totaling 530,000 square feet.
Jose Juncadella, managing principal of Coral Gables-based Fairchild Partners, handled the larger of the deals, brokering the $9 million sale of a 302,000-square-foot warehouse at 215 S.E. 10th Ave., in Hialeah. The building, formerly home to Lagasse Paper, sits on 10.5 acres and includes 25,000 square feet of office space, 200 parking spaces and 20-foot-high ceilings. The seller was TA Associates.
In a separate deal, Terreno paid $7.8 million for the 230,000-square-foot building that is now home to Furniture Power in Miami Lakes.
The building, at 14100 NW 60th Ave., the former Elizabeth Arden headquarters, sits on 13.2 acres. It has 40,000 square feet of office space, 600 parking spaces and 24-foot-high ceilings. Rene Vivo, of Vivo Real Estate Group, represented the seller, Miami LK FP.
In the case of the Hialeah building, Juncadella laid out a plan so that the warehouse and office space could be leased to multiple tenants. He also said the building could be expanded.