Availability of land, favorable pricing and a lack of congestion are sparking new interest in Homestead commercial real estate, observers say. The city in far southern Miami-Dade County is home to new industrial space and its retail market is strong.
“As far as retail goes, rates in downtown Miami are outpricing what most tenants can afford to pay,” said Peter J. Crane, who works in investment sales for Franklin Street. “Just as in any other major city that is experiencing growth, the surrounding suburban areas eventually will see an uptick in demand, leading to more development in all sectors, usually starting with residential and retail.
“Homestead is unique; it’s one of the country’s oldest suburbs,” Mr. Crane said. US 1 as it passes through Homestead is “a hot retail corridor,” as is Campbell Drive (Southwest 312th Street) from US 1 to Florida’s Turnpike, he added.
“There has been a lot of overall growth in the past few years; Homestead now has a brand-new hospital, which was followed by new residential communities, new hotels and, as of late, brand-new and/or renovated retail developments,” Mr. Crane said. “The suppy is trying to catch up to the demand, from single tenant buildings to grocery-anchored shopping centers. IT doesn’t have the congestion of Coral Gables or downtown Miami.”
Mr. Crane is handling the sale of Dixie Center at 30200-30394 Old Dixie Hwy., a shopping center anchored by a Winn Dixie Supermarket. Franklin Street has also listed Campbell Crossings at Campbell Drive and Northeast 14th Avenue, which is approved for 46,000 square feet of retail and three additional outparcels; and a ground lease at Black Pointe, a 1.08-acre parcel at Southwest 112th Avenue and Southwest 248th Street that is zone for multiple uses.
“We’re seeing land development deals and new retail construction all over the place on the main trafficked strips,” Mr. Crane said. “Tenants, developers, and investors in other areas of Miami-Dade are starting to open their eyes to Homestead.”
“The No. 1 reason users go down south is the availability of land,” said Steven Medwin, managing director of JLL. “The traffic congestion is not as bad as it is further north and there’s a population base of locally owned business owners who need warehouse space.”
JLL is currently the exclusive leasing agent for Turnpike 1, a 117-acre industrial and business park at Southwest 336th Street and 147th Avenue that will offer 1.6 million square feet of space at completion. The first phase comprises a 35,000-square-foot building that will feature a 30-foot clear ceiling height, dock-high loading and build-to-suit office space.
The project, which is just off exit 1 of the turnpike, is owned by GBX Capital, a Brazilian real estate and development group.
“This is their first project in the US,” Mr. Medwin said. “Before this, nobody had built speculative warehouse space here in 25 years.”
The first building is leasing up quickly, based on its proximity to major roadways, he said. “It’s easy to get around here, and you have access to South Dade and to the Florida Keys.”
The project has gotten good response and cooperation from the City of Homestead, he said. “The city is very eager to have more development, as that helps the tax base. This is an opportunity to bring more business to Homestead and decreases the number of vehicles that drive north every weekday morning. It’s a win/win for everyone.”
