SoMi Industrial Portfolio OM

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SOUTH MIAMI INDUSTRIAL PORTFOLIO | EXECUTIVE SUMMARY
Maksanim
185th Terrace (Quail Roost Road frontage)
South Dade Industrial Center
Strategic Location
South Florida is one of the top three land-constrained industrial markets
in the U.S., along with Southern California and Northern New Jersey. In
fact, South Florida has the lowest ratio of industrial SF per capita (62
SF) of all industrial markets. Additionally, estimates have South Florida
adding the lowest amount of industrial product per capita (33 SF) over
the next five years. The subject Portfolio is strategically located at
the crossroads of South Dixie Highway and Florida’s Turnpike, the
two most important highways serving Southern Miami-Dade County.
Further, the industrial node in which the vast majority of the Portfolio
is situated represents the southernmost major industrial cluster in
the county. Amenities in the local area abound (e.g., 72-acre Southland
Mall, The Home Depot), and additional planned residential and
transportation projects (e.g., MetroRail expansion) will further increase
the density, commerce and connectivity of the immediate area.
Opportunity to Grow Rental Rates and Re-Tenant
The vast majority of leases at the Portfolio have less than one year of
term remaining, thus allowing new ownership to immediately negotiate
higher rents and increase NOI. In addition to the aforementioned factors
impacting demand for industrial space, the recent (November, 2016)
adoption of an amendment to legalize medical marijuana will introduce
a new demand driver once the legislature sets the framework in 2017.
An International Business Times article from one year ago reported that
Colorado’s cannabis industry occupied at least 3.7 MSF of industrial
space in Denver, leading to nearly record-high rents and low vacancy
rates. From 2009 through 2014, marijuana-related tenants accounted for
more than a third of industrial space leased in Denver. Marijuana tenants,
analyses have been found, often pay three to four times the average rent
paid by “mainstream” businesses. A study by Arcview Market Research
) and New Frontier Data showed that
Florida is on track to log more than $1 billion in medical marijuana sales
by 2019 and surpass Colorida within four years.
Development-Ready Pad for
30,972 SF, 24-unit Warehouse
| 9 EXECUTIVE SUMMARY