International Council of the MIAMI Association of REALTORS

     

                

International Articles and Advertisements

The MIAMI Association of REALTORS® features a half-page article each week in The Miami Herald –International Edition, promoting MIAMI Members and the South Florida real estate market to affluent consumers in Latin America and Europe.

  • South Florida Ranks among Tops in Nation for Commercial Investment Gains

    by | Mar 13, 2017
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    South Florida is one of the top U.S. markets delivering solid returns and safety of capital for global investors, according to new statistics from Real Capital Analytics.

    Miami/South Florida posted 10 percent commercial real estate investment gains in the first half of 2016. Other top performers were Las Vegas (101%), Denver (up 51%) and Philadelphia (up 28%). Fort Lauderdale also posted gains in sales volume, rising up the ranks of top markets.

    South Florida has long been a top destination for international investors. Attractive real estate, proximity to Latin America, cultural offerings, resort lifestyle and global business center are just some of the reasons why foreign nationals invest here.

    The U.S. continued to be the top destination country for international investors, according to commercial real estate investment statistics from the first half of 2016. Chinese investors acquired $4.3 billion worth of commercial real estate properties in the first half of 2016, a 17 percent year-over-year increase, according to Real Capital Analytics.

    Canada, Germany and Singapore continued to be top investors in U.S. markets. Qatar and Saudi Arabia posted transactions totaling $1.8 billion each, a 204 percent and 5,314 percent increase, respectively.

    South Florida Retail
    Miami and Fort Lauderdale are the top two retail markets in the United States, according to a recent long-term retail market outlook report by online real estate marketplace, Ten-X. Miami hospitality employment rose by nearly 5 percent in 2015 to 136,100 jobs — an all-time high, according to the Greater Miami Convention & Visitors Bureau.

    Downtown Miami, which has more than doubled its population to 80,000 in the last decade, is the site of two major mixed-use projects: the $1.05 billion Brickell City Centre and the $1.7 billion Miami Worldcenter. The projects are just two of the various under construction projects in the region. The United States’ largest mall, the proposed 200-acre American Dream Miami, may also be coming to Miami-Dade, if approved by the county.

    “Big name retailers see Miami as a must place to be,” said Juan Roberto DeAngulo of Elion Partners. “It’s less of an economic decision and more of a marketing decision.”

    REITs Boosting Miami CRE
    Low interest rates and an improving jobs picture have escalated the importance of real estate investment trusts. REITs are having a major impact on the Miami commercial market.

    REITs came to South Florida 15 years ago and altered the local commercial market, Wayne Ramoski of Cushman & Wakefield said during the 2016 RCA Midyear Update. REITs invest across a broad array of sectors, from office buildings to shopping malls and hotels. There also are health care, timber and infrastructure REITs.

    Developers are buying and building new malls because of South Florida’s population growth and increased tourism. Miami-Dade, the most populous county in Florida, added 7.8 percent more residents in the last five years and has a population of 2.69 million, according to U.S. Census Bureau data. A record 15.5 million visitors visited Miami in 2015, according to the Greater Miami Convention & Visitors Bureau.

    “The way REITs develop and hold is very different than a local developer would expect,” Ramoski said. “It’s brought in an institutional class of developer. They are here because the Miami market is not going away. There are certain factors about Miami that are going to keep it alive for a long time. The REITs are also cross selling other clients they have in different markets into this market.”

    Rising Demand for Miami Commercial Property
    Miami’s low commercial vacancy rates, population boom, tourist growth, infrastructure improvements and growing prominence as a world-class global city have each played roles in multiple major local commercial purchases.

    Spanish billionaire Amancio Ortega’s $370 million purchase of an entire block of Lincoln Road in September 2015 nearly set the record for the biggest commercial transaction in Miami-Dade County history. The $375 million sale of 50 percent of the Fontainebleau Miami Beach hotel to a company owned by the government of Dubai in 2008 remains the largest purchase.

    Miami’s excellent quality of life, competitive business climate and central located geographic position make it a top location for trade, business and tourism. Miami-Dade County’s skilled multilingual, multicultural workforce, the region’s easy access to the world’s major markets and Miami’s low-tax climate compare to other U.S. cities and states are perennially leading global companies to open businesses here. With Florida now ranking as the third-largest state in the U.S., businesses are relocating to Miami to reach the growing Florida and U.S. markets.

    Florida: Top Business Location
    ● No personal income tax
    ● Ranked No. 2 in the U.S. for best state for business (Chief Executive)
    ● Ranked No. 1 Tax Climate in the Southeast for Business (Tax Foundation)
    ● Ranked No. 3 in the U.S. for High-Tech Businesses (TechAmerica Cyberstates)
    ● One of every five U.S. companies that export is located in Florida (U.S. Census Bureau)

    Florida’s Top-Rated Workforce
    ● Florida is ranked No. 5 in the U.S. in high-tech employment in the U.S. (TechAmerica Cyberstates)
    ● Florida has 5 million foreign language speakers (U.S. Census Bureau)
    ● 9.7M+ civilian labor force—more than double the population of Ireland. (Bureau of Labor Statistics)
    ● Ranked No. 1 in the U.S. in innovation (Fast Company)
    ● Ranked No. 3 in the U.S. in workforce size (Bureau of Labor Statistics)

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  • South Florida Experiencing Unprecedented Warehouse, Industrial Growth

    by | Mar 01, 2017
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    Industrial developers are building South Florida warehouses and logistic spaces like never before, a development that is boosting the local real estate market and adding thousands of jobs to the local economy.

    As more consumers buy products online, industrial developers are building more South Florida warehouses to store everything from car parts to fresh-cut flowers. They are investing in Miami because of its growing population, thriving business center, friendly tax structure and proximity to Latin America. South Florida gained 500,000 new residents in the past five years, and is known as the financial epicenter of the southern hemisphere.

    South Florida’s industrial space has grown by 9 million square feet in the past three years, according to third quarter 2016 JLL Research. Another 4.6 million square feet of South Florida warehouse space will come open in 2017.

    Developers want their warehouses and logistic spaces to have close access to major airports, ports, highways and Latin America. Miami checks all of those boxes.

    Miami International Airport (MIA) 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 2.2 million tons of total airfreight, of which 88 percent was international freight.

    MIA is the United States’ top hub for all U.S. flower imports. About 91 percent of all international flowers entering the United States come through Miami.

    PortMiami is Miami-Dade County’s second most important economic engine, contributing $28 billion annually to the local economy and supporting more than 207,000 jobs in South Florida. The port serves 240 seaports.

    Port Everglades in Fort Lauderdale is the leading container port in Florida and is ranked as the 12th busiest container port in the nation.

    The Growth of Online Retail and its Impact on Local Warehouse Space
    More consumers are purchasing goods online.

    According to eMarketer’s latest forecasts, worldwide business-to-consumer (B2C) e-commerce sales will increase by 20.1% this year to reach a whopping $1.5 trillion. Forrester estimates that US online retail sales alone will total $294 billion by the end of the year, and will grow to $414 billion by 2018.

    More consumers want to have their products delivered to them as fast as possible.

    In its latest survey of over 1,000 U.S. consumers, supply chain consulting firm AlixPartners LLP found that consumers expect to wait an average of 4.8 days for delivery, down from 5.5 days in 2012. And the share of those who are willing to wait more than five days has declined to 60% from 74% in four years.

    As a result, more warehouse space needs to be built in the nation’s biggest cities.

    South Florida tenants have leased 18.9 million square feet of warehouse space over the past three years, results in sales of more than $1 billion in 2015.

    Amazon, the world’s largest retailer, is one company familiar with South Florida.

    Amazon is expected to open one of the largest warehouses in the county at the Opa-locka airport. The facility would create a nearly 900,000-square-foot distribution center with 1,000 jobs.

    Opa-locka, a county owned airport, is about four miles west of Interstate-95. It is believed to be the first new construction in northeastern Miami-Dade in years.

    Doral’s Growing Warehouse Space
    The City of Doral, located near the Miami International Airport, has long been a major warehouse district and it only seems to be growing.

    Doral is located about a few miles from Miami International Airport and 12 miles from PortMiami. Doral is home to one of the fastest-growing cities in the United States.

    Some of the major employers in the City of Doral include: Carnival Cruise Lines, Univision, U.S. Southern Command, BE Aerospace, Gold Coast Beverage Distributors, Telefutura, Hellmann Worldwide Logistics, and many government entities.

    Doral has more than 3,000 logistic associated companies, and it has the top-ranked tile district in the United States. Doral has millions of square feet of warehouse space. The large industrial parks include: PS Business Park’s MICC; Prologis’ Beacon Centre, Beacon Industrial Park and Beacon Lakes; International Corporate Park (ICP); KTR’s Beacon at 97th; and Americas’ Gateway Park.

    Miami’s Diversity Driving Population Growth
    South Florida is now the nation’s eighth largest metropolitan area, and Miami’s ability to attract international residents is a large reason why. Miami-Dade/Broward/Palm Beach metro area surpassed six million residents for the first time earlier this year.

    Of the 500,000 new residents who moved to the Miami, Broward, Palm Beach metro area over the last five years, about 65 percent (335,000) came from other countries, according to U.S. Census data. South Florida’s tax environment (no state income tax in Florida), growing tech industry and infrastructure improvements are leading more Americans to relocate to Miami.

    The world is drawn to Miami because Miami speaks their language. Fifty-six different languages are spoken among the student population at Miami-Dade County Public Schools. When you analyze the tri-county South Florida region, 128 languages are spoken in Miami-Dade, Broward and Palm Beach counties, according to a 2015 U.S. Census Bureau report.

    Art, Culture, Transit Attracting Residents
    Miami’s cultural and art institutions are also influencing the region’s population growth. Miami Beach’s Art Basel show draws the world’s top collectors, and the Wynwood neighborhood has gained national and global attention for its trendy local art.

    The Adrienne Arsht Center for the Performing Arts and the waterfront Pérez Art Museum Miami (PAMM) opened recently in Downtown Miami. The $305 million Patricia and Phillip Frost Museum of Science adjacent to PAMM will open in early 2017.

    Greater Downtown Miami has seen a 99.6-percent population increase since 2000, growing from 40,466 to 80,750 residents. Brickell — which is the core of Miami’s banking, investment and financial centers — has seen the largest increase in downtown, growing from 12,904 residents in 2000 to 32,489, according to the Miami Downtown Development Authority.

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