Doral gaining during nation’s commercial realty dip
Miami Today Discusses Doral Commercial Real Estate Trends in South Florida with Lee & Associates South Florida President, Matthew Rotolante, SIOR, CCIM
'Doral gaining during nation’s commercial realty dip'
Doral’s commercial real estate defies national trends and continues to showcase high demand..
Doral’s commercial real estate defies national trends and continues to showcase high demand.
“Viewing commercial real estate overall, even on a national scale,” said Matthew Rotolante, president and broker at Lee and Associates South Florida, “I would say Miami, Doral included… is somewhat resilient in the face of some of the trends that are taking place on a national scale.”
Doral has faced and surpassed the test of time as it has evolved over the years and maintained its prominence.
“Originally it evolved more as an industrial land area,” said Mr. Rotolante, “with a lot of warehouses, but what we’ve seen more recently is there’s been a lot of residential buildings and neighborhoods, townhomes, condos, single-family homes that have been built. It’s a great place to live.”
In regard to multifamily, said Mr. Rotolante, new apartments have been built.
However, the pandemic impacted office space as many companies opted for employees to work remotely.
Due to covid, said Mr. Rotolante, office space has not performed as well on a national scale. Markets that have a lot of office space such as San Francisco and New York have suffered.
Despite the change, Doral’s office market has continued to excel.
Similarly, other professionals in the field have noticed the impact the suffering in these locations has had on the office market in Doral.
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On the industrial side, rents have stabilized, said Mr. Rotolante, “and we’ve seen some negative absorption in the Doral area, maybe about 600,000 square feet or so. What that does is it leads to a rising of the vacancy rate. I think we’re hovering around 5% where we had been as low as 3.8%. So with that in mind, you’re seeing a lot more subleases on the market, which means businesses that had leased property and still have the lease terms left, they’re trying to find tenants to replace themselves on those leases.”
This indicates things have slowed down a little bit, said Mr. Rotolante. However, businesses are still making the decision to lease and are making a profit.
There are different types of users for warehouse and office, said Mr. Rotolante. Due to residential increase, there has been a growth in healthcare such as Jackson North coming in and the University of Miami is doing a UHealth center.
Retail, over the past 20 years, has been suffering from E-commerce and online shopping, said Mr. Rotolante. This has benefited warehousing.
However, retail vacancies are relatively low right now for the Doral area and South Florida in general.
“We’re really well located for international trade,” said Mr. Rotolante, “we’re really well located for import and export, and you see a lot of that taking place. A lot of the warehouses are based on consumption, so we’re seeing a lot of E-commerce uses. We’re seeing a lot of 3PL, third-party logistics, operators that are basically moving and shipping products for big retailers and other wholesalers. Those are the primary users. Every once in a while, you’ll have a manufacturing operation too, but I would say that predominantly the warehouses are being used by import, export and logistical operations, distribution-oriented businesses.”
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About Lee & Associates South Florida
Lee & Associates South Florida is a fully vertical commercial real estate brokerage firm focused on industrial, office, retail, multifamily, investment and land sectors. Our dedicated team of professionals is led by Matthew Rotolante, CCIM, SIOR a 4th generation South Florida native in a family that has owned and operated commercial property here since 1928. Lee & Associates is the largest agent owned brokerage in the nation with Senior Agent’s ability to earn profit share resulting in the highest splits while still receiving full resources, support and leads from our national network. Our collaborative and cheerful culture allows for open communications throughout the company, fostering the sharing of information and best practices to better enable client decision making. The Lee & Associates’ robust national network that sold and leased over $115 Billion in the last 5 years offers clients a cross-market platform of expertise and deal opportunities across all asset specialties and representation roles. For the latest news from Lee & Associates South Florida, visit leesouthflorida.com or follow us on Facebook, LinkedIn, Twitter and Instagram, our company local news.
About Lee & Associates
Lee & Associates is a commercial real estate brokerage sales, leasing and management firm. Established in 1979, Lee & Associates has grown its service platform to include over 75 offices in the United States and Canada. Lee & Associates is the largest agent owned commercial real estate brokerage where agents get the greatest return for their efforts and hence are more committed and better enabled to provide superior results for their customers. For the latest news from Lee & Associates, visit lee-associates.com or follow us on Facebook, LinkedIn, Twitter and Link, our company blog.
