Miami’s Industrial Real Estate Has Buyers Lining Up

Miami’s Industrial Real Estate Has Buyers Lining Up

Writer: Sara Warden

2 min read SEPTEMBER 2019 — Miami is an attractive place to live and a business hub, but that also means its real estate doesn’t come cheap. In the huge land expanses involved in industrial real estate, assets cost a pretty penny. But the dynamics of the Miami market mean developers are not shying away from putting their hand in their pocket.

A key example of this is the recent sale of the three-building, 74-acre Centergate development at Gratigny in Hialeah for $178 million, Florida’s biggest sale of the year. Real estate giants CBRE closed the sale on behalf of the buyer.

“Centergate is one of the largest industrial offerings to come for sale in South Florida in recent years,” said CBRE Executive Vice President Jose Lobon in a news release. “Given the challenges to aggregate square footage in our market, Centergate presented a unique opportunity to acquire critical mass in one of the most desirable logistics markets in the nation.”

The sale can be broken down to a price of $111.25/ft2, a steal compared to recent deals in the greater Miami area. At the end of last month, institutional investor The Blackstone Group bought the 14-acre Airport Trade Center property west of Miami International Airport for $56 million, or $152/ft2.

Also this month, CBRE closed another multimillion-dollar industrial real estate deal, selling the five-building Miramar industrial portfolio to Stockbridge Capital. This deal equates to an eye-watering $192/ft2.

“It’s hard to buy industrial real estate in South Florida. It’s very competitive. Particularly when you see something of this size, multiple buildings,” Lobon added. “The opportunity to be able to buy in one stroke over 600,000 square feet of Class A, high-quality institutional industrial real estate in South Florida, those opportunities don’t come around that frequently.”

With these values, it’s not hard to see why other industrial real estate investors have made Miami a prime focus in their business plans. NYSE-listed real estate corporation Terreno has made Miami a cornerstone in its six-market strategy. 

“Terreno acquires, owns and operates industrial real estate in six major coastal US markets. Exclusively. Functional, flexible, infill real estate located at the intersection of growing demand and limited, or even shrinking, supply,” the company says on its website.

E-commerce is one of the reasons why industrial real estate close to the city limits is in such high demand in recent years. Miami is the sixth-most densely-populated city in the United States and the metropolitan area is home to over 6 million people. 

A 2017 study by San Francisco technology company Trove Technologies found that Florida is No. 1 for discretionary income in the South Atlantic region. Discretionary income is the amount left over after paying for the essentials such as rent and bills.

A huge captive population combined with sizeable disposable income is not only good news for e-commerce, but also for the US industrial real estate giants that are betting on the greater Miami area.

 

To learn more about our interviewees, visit:

https://www.cbre.com/about

https://www.blackstone.com/

https://stockbridge.com/

https://terreno.com/

Philly Legal: These Sectors Are on the Right Side of the Law

by Yolanda Rivas

2 min read SEPTEMBER 2019 — Over the last few years, Philadelphia’s legal sector has seen a steady flow of law firms entering the market as well as local firms expanding in and outside the region. As the market gets more concentrated, many firms are betting on key growth areas to expand their practices. 

According to Invest: interviews with leading legal voices in the Philly area, health and life sciences, technology, real estate and finance are some of the sectors keeping attorneys busy. With a diverse business ecosystem in Philadelphia, firms like Zarwin Baum DeVito Kaplan Schaer Toddy, P.C. are experiencing high demand in commercial business, especially in the areas of banking, leasing, real estate financing and real estate development.

“We also have seen growth in our employment practices area, in part due to the #MeToo movement, which is generating many more workplace claims. Commercial litigation is also a growth area for us,” Mitchell Kaplan, managing shareholder at Zarwin Baum, told Invest:. “But we are currently seeing the most growth in our data privacy and cyber-liability department. That department gets involved in the training of businesses to prevent data leaks and breaches. We provide training, prevention and breach response,” Kaplan said. 

Similarly, St. Louis-based Armstrong Teasdale LLP is growing its intellectual property presence in Philadelphia as a result of the increasing demand in technology litigation around the country. “Intellectual property services, whether it be trademark, patents or copyrights, are required by any business. We support our clients with many trademark and retail issues. For example, in the science, healthcare and pharmaceutical fields, we do a lot of patents and protection of intellectual property. There is high demand for intellectual property services in Philly,” Armstrong Teasdale’s Eastern U.S. Partner and Leader Richard Scheff said in an interview with Invest:. 

According to an article from The Legal Intelligencer, Pennsylvania-based firms saw demand growth of 2.6 percent last year, slightly above the industry average of 2.3 percent. One of the benefits of Philadelphia’s legal sector is the presence of 20 Fortune 500 companies and over 75 Fortune 1000 companies. 

Besides technology and intellectual property services, financial institutions and real estate companies are particularly robust areas for Philadelphia’s legal sector. “Blank Rome’s Real Estate and Financial Services practices are very strong, particularly in Philadelphia. Both continue to be core areas of our law firm with a strong national presence,” Alan J. Hoffman, chairman at Blank Rome LLP, told Invest:.

Finance and technology also form part of Duane Morris LLP’s Top 5 sectors in terms of revenue and areas of focus. “About 85% of our revenue is in the following industries: financial institutions, health and life sciences, technology and telecommunications, infrastructure (including construction and energy) and finally, retail and consumer products. Those areas are our focus across the firm and in Philadelphia, which is our largest office with over 200 lawyers,” Matthew Taylor, chairman & CEO at Duane Morris LLP, told Invest: 

Citi Private Bank Law Firm Group’s Q2 2019 report projects a good year in 2019 relative to earlier post-recession years, although it will be a challenge for the industry to see a repeat of 2018’s strong performance.

To learn more about our interviewees, visit:

Zarwin Baum DeVito Kaplan Schaer Toddy, P.C.: https://www.zarwin.com/ 

Armstrong Teasdale LLP: https://www.armstrongteasdale.com/ 

Blank Rome LLP: https://www.blankrome.com/ 

Duane Morris LLP: https://www.duanemorris.com/ 

Atlanta’s Westside: Where Opportunity Meets Walkability

By Sara Warden

 

2 min read September 2019 — There are 26 qualified Opportunity Zones in the city of Atlanta, with the majority of them running down west of the I-75 in the city’s Westside. The qualified Opportunity Zones were born from a fiscal effort to drive private business into low-income communities. But it is more than just tax incentives that make Atlanta’s Westside one of the city’s fastest-gentrifying areas.

“There is demand,” Avison Young Principal Casey Keitchen told Bisnow. “There’s way more capital chasing qualified Opportunity Zone deals than there are qualified Opportunity Zone deals.”

This week, the Arthur M. Blank Family Foundation awarded a $17.5 million grant to Atlanta BeltLine Partnership to support development of Westside Park. The 280-acre park is slated to be the largest greenspace in Atlanta when it opens, with the first phase set to be inaugurated in 2020. The donation will be combined with $26.5 million from the city.

“Westside Park is a transformational project that will set an exciting new precedent for greenspace development across Atlanta,” said John Dargle, Jr., Commissioner for the city’s Parks & Recreation department in an interview with Atlanta Daily World.

According to Arthur M. Blank, Chairman of The Arthur M. Blank Family Foundation, the aim of the project is to create a community in an area that did not have the facilities to do so. “We want these Westside communities to feel like this is their park where residents, neighbors, and visitors are connecting and gathering because that is when Atlanta is at its very best,” he told Atlanta Daily World.

In the last few years, private developers have flocked to the area to take advantage of the qualified Opportunity Zone, among other features. 

“Westside is all the rage [for] creative office. That makes sense,” Banyan Street Capital Principal Taylor White told Bisnow. “It makes a lot of sense for Opportunity Zone investors to go to that market.”

The magic of the Westside is that it is the point of crossover between most qualified Opportunity Zones and the Atlanta BeltLine project, meaning this real estate is worth its weight in gold. It can offer easy mobility, green spaces, social spaces and entertainment. Added to this is the Westside’s easy access to educational facilities, in particular Georgia Tech, which means that for developers, the sky is the limit. 

One developer that saw opportunity in the area is CrossStone Management, a firm that purchased several land parcels and is now looking to build retail, residential and commercial space. “I was attracted to the areas before Opportunity Zones were even discussed,” said the firm’s founder, Greg Todey, to Bisnow.

 

To learn more about our interviewees, visit:

https://beltline.org/about/the-atlanta-beltline-project/atlanta-beltline-overview/

https://blankfoundation.org/

https://www.atlantaga.gov/residents/parks-recreation

http://www.banyanstreet.com/

Miami Dolphins Kick Off Season With New Training Complex, Partnerships, Roster Moves

By Yolanda Rivas

2 min read AUGUST 2019 — With a new head coach and a rebuild underway, the Miami Dolphins will field a re-tooled look when the NFL’s 100th season kicks off next week. That look extends beyond the players and coaches, with a new training complex in the works and fresh partnerships that emphasize community involvement and impact. 

The Dolphins recently broke ground on the $135 million state-of-the-art training complex and sports performance clinic in Miami Gardens. The facility, named Baptist Health Training Complex, is part of a multiyear partnership with Baptist Health that is projected to open in spring 2021. 

“The Baptist Health Training Complex will be a state-of-the-art football facility with Baptist Health providing a world-class sports performance clinic available to the public so people can have access to the same care the players get,” Miami Dolphins Chief Executive Officer Tom Garfinkel said in a written statement.

The 125,000-square-foot training facility and 92,200-square foot indoor field will be significantly larger than the team’s current facility. The complex will also house an innovation hub, a state-of-the-art hydrotherapy area, a dedicated recovery area that includes cryotherapy and isolation tanks, an athletic training room with an expansive rehabilitation space, meeting rooms, an outdoor practice area with two full natural-grass fields, full indoor practice facility and other amenities. 

Another significant announcement by the Dolphins and its FOOTBALL UNITES™ program was the partnership with Miami-Dade County Public Schools (M-DCPS) through Values Matter Miami, which promotes education and values among the city’s students. According to an official announcement, starting in September, the Dolphins will recognize a student each month who best exemplifies a specific value.

“The Miami Dolphins are proud to strengthen our relationship with M-DCPS by supporting the Values Matter Miami Program to directly impact the students of Miami-Dade County,” Jason Jenkins, Miami Dolphins’ senior vice president of communications and community affairs, said in a written statement about the partnership. 

These initiatives are part of the Dolphins goal to inspire a healthier, more educated and united South Florida community. 

To learn more about our interviewees, visit:

Miami Dolphins: https://www.miamidolphins.com/ 

Baptist Health: https://baptisthealth.net/en/pages/home.aspx 

Miami-Dade County Public Schools: http://www.dadeschools.net/ 

Values Matter Miami: http://osi.dadeschools.net/valuesmatter/

The Future is Now for FATVillage

By Max Crampton-Thomas

 

3 min read August 2019 — Fort Lauderdale’s FATVillage makes up for what it lacks in size with a treasure trove of arts, cultural and technological offerings. Founded in the late 1990s by Doug McCraw, the four-block historic warehouse district has developed into an arts hub to rival the most established arts districts in South Florida. While the area was originally founded as a way to rally philanthropic support around the artistic community in Fort Lauderdale, it is now transitioning into the premier destination for artists, small-business owners, technologists and arts enthusiasts.

The emergence of FATVillage has been a thoughtful and deliberate process of encouraging smart development that never diverts from the emphasis on art as the main part of the neighborhood’s DNA. This stands true for the introduction of more mixed-use development into the area, as McCraw highlighted in a recent interview with Invest: Greater Fort Lauderdale, discussing how that development is not only a new concept but also positively affecting the surrounding neighborhoods. “FATVillage has consistently been a significant economic driver in the Broward County region. It has acted not only as an arts community but also as a nucleus for a lot of the development in Flagler Village. What we are doing in terms of using art as a driver of mixed-use development is still a new concept, and not many developers are integrating product development with a creative community in the same way that we are,” McCraw told Invest. 

He also acknowledged that while FATVillage is undergoing a transition to focus on developing its status as an economic driver in the region, the reason for the district’s success has been the deliberate and careful process of deciding who can lease inside the area. “FATVillage is at a transition point. We are very focused on developing FATVillage to make it a treasure for Fort Lauderdale. We have aggregated various types of coworking spaces with different disciplines, all of which are major components of FATVillage. We have a curated process and we do not just lease to the first person who walks in the door. Our focus on art as an integrated part of the DNA of FATVillage makes us a unique component of Fort Lauderdale’s culture,” McCraw said

Helping to achieve this vision for the future of FATVillage, while also remaining true to its arts identity, is Urban Street Development, which has been involved with the district from the beginning. Invest: recently had a conversation with the Co-Founder Alan Hooper about what the next phase of development for FATVillage will look like. “In August, we intend to deliver a plan that will take the FATVillage Art District in downtown Fort Lauderdale into an exciting era that will combine food with art and technology (FAT) and develop a neighborhood where people and businesses of all sizes can find a place to live, create, collaborate, and socialize. The 5- acre-plus plan fully embraces the arts and elevates the opportunities for artists and creative businesses alike. Positioned inside the downtown core, the Opportunity Zone, and a block from Brightline, the options for community building are endless,” Hooper told Invest:. “We want to help FATVillage evolve into the place it should be. A place that is attractive to creative businesses while maintaining the artists who made us a well-known destination. We want to build some affordable housing for artists and local creative people, as well as really cool workspaces for start-up businesses that might represent art in another way, through video or audio, the art of the word, or the art of food. A place like this will be very attractive to businesses that benefit from hiring within a congregation of talent. In the end, we are creating a village that all people can grow with, be a part of and enjoy.” 

Arts and culture is a major key in Florida’s economy, and even more so in Broward County. Areas like FATVillage play a vital role in keeping arts in the county, and acting as a significant economic driver for the region. FATVillage has long been an attractive destination in Fort Lauderdale, but it is now on the cusp of a major transition into a true arts and economic staple in Broward County. 

 

To learn more about our interviewees, visit:

https://www.fatvillage.com/

http://www.urbanstreetdevelopment.com/

Tampa Bay Is the Place to Be

By staff writer

January 2019

There is no denying that Tampa Bay is on the up and up; in fact, the region saw 3.98 percent job growth in the last year. With more young professionals coming into the region than ever before and a booming tech scene, Tampa is a hot place for development. In fact, Tampa is one of the fastest-growing metro areas in the U.S., and according to a 2017 study by NerdWallet, millennials make up nearly a quarter of its total population.

With this substantial population growth and millennial influence comes increased demand for more targeted talent to meet workforce needs and ramped-up construction to provide housing to the influx of new residents. Invest: Tampa Bay spoke with local leaders across Tampa’s major economic sectors to find out where they see the region growing and shining. While they might work in different industries, it is easy see that the general message is the same: Tampa Bay is the place to be.

“We’re working to develop an employee-led, demand-driven workforce strategy. Rather than simply push forward higher graduation rates and certificate completions, we’re starting from the demand side to understand exactly what we need today and in the future. Then we can develop a strategy to produce that. We are looking at five major industries that we think are critical to Tampa Bay’s economic future: healthcare, manufacturing, hospitality, information technology and construction.”

—Rick Homans, President & CEO, Tampa Bay Partnership

“Tampa is in a bigger growth position and has a more vibrant construction economy than it has ever had in its history. There are more large projects here than there ever have been — by a large margin. There is great growth from one end of Tampa Bay to the other. Channel Side is exploding. Downtown Tampa and Downtown St. Petersburg continue to be amazingly busy, and the beaches are strong. Growth is steady, and we haven’t seen any leveling off.”

John Bowden, Senior Vice President, Moss Construction

“The Tampa Bay region stands out as Florida’s business destination. We offer a high quality of life with a low cost of living. That’s what we’ve been known for because it’s rare to have both. With that, we’re attracting a lot of talent. When you have jobs and a high quality of life, it makes you very attractive to young professionals. We also have one of the most affordable markets for first-time home buyers.”

—Craig Richard, President & CEO, Tampa Hillsborough Economic Development Corporation

For more information on our interviewees, visit their websites:

Tampa Hillsborough Economic Development Center: https://tampaedc.com/

Tampa Bay Partnership: https://www.tampabay.org/

Moss Construction: https://mosscm.com/