“I want to sell my commercial property in Miami, Florida. Where do I start?”
This is a question that’s been asked by many commercial real estate owners who are looking to sell their property in the Magic City. Whether selling to realize profit, as a reinvestment strategy, for portfolio optimization, or because of cash flow concerns, one thing is certain: a Miami commercial real estate broker can help a seller start off on the right foot.
When it comes to selling commercial real estate, Miami is a market best navigated with the help of an experienced broker. In today’s complicated real estate market, the expertise of commercial real estate brokers can be a big advantage. Some sellers overlook the importance of having a commercial real estate broker, only to experience selling difficulties that could have easily been avoided with the help of the right professional.
If you’re planning on selling commercial property in Miami, read on to learn more about current Miami market trends and the valuable role a commercial real estate broker plays in helping property owners sell confidently.
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COMMERCIAL REAL ESTATE IN MIAMI, FL
The Miami metropolitan area includes Miami-Dade, Palm Beach, and Broward Counties. This southeastern region in the Sunshine State is one of the most populous areas in the country. The greater metropolitan area alone is home to 6,139,340 people with a forecast of hundreds of thousands more to move in over the next few years.
As part of South Florida’s Gold Coast, Miami is a tourism powerhouse and a major global destination. Miami International Airport has served nearly 26.2 million passengers in the first half of 2023. In the same period, millions of tourists also visited Miami-Dade County, resulting in a 75% average hotel occupancy rate.
Commercial real estate in Miami, Florida is dynamic, versatile, and unique to the culture of the region. There is an increasing demand for commercial real estate as the population continues to grow.
In addition, certain tax laws in Miami are advantageous to businesses, further fueling the demand for commercial real estate. A gateway to Latin America and the base of one of the busiest cargo ports in the US, Miami has a strategic location that makes it an excellent hub for a plethora of industries.
Types and status of commercial real estate in Miami, Florida
Listed below are the top commercial real estate types in Miami and the current trends in each one according to a 2023 report by the National Association of Realtors.
- Industrial real estate
If you are looking to sell a manufacturing, service, storage, or warehouse facility, now is the perfect time to do it. While the demand for industrial space in Miami is weaker compared to other major cities in the country, rent prices still rose at a faster rate than the national average, with a market rent growth of 11.9% over 12 months. The vacancy rate is also lower than the national average at 2.4%. There is a strong potential for growth in the coming year as there are many construction activities in progress.
- Office real estate
Due to the new dynamics brought about by remote working, offices are changing to meet the emerging needs of the workforce. According to the NAR report, there is greater demand in the office sector in Miami compared to the rest of the country. The city also has a lower vacancy rate at 9.3%, while rent prices also increased faster with a market rent growth of 10.5% over 12 months.
Corporate, life sciences, medical, and research and development offices are just some of the commercial real estate types that are selling competitively in Miami. As the metro is positioning itself as a tech hub, there is a projected increase in the need for premium office space. There is also a notable shift to Class A workspaces in Downtown Miami and Wynwood.
- Retail real estate
Miami has always been a shopping mecca for tourists as well as the rich and famous who call this city home. Convenience stores, malls, shopping centers, and other retail spaces had a stronger demand in Miami compared to other metropolitan areas. The report showed a lower vacancy rate at 3% and a faster market rent growth rate of 4.6% over 12 months.
- Hotel and accommodations
Some examples of hotel and accommodation properties in Miami are premium branded, select service, limited service, extended stay, and compact full service. The hospitality industry in Miami faced some difficulties in 2023, with both RevPAR (Revenue per available room) and ADR (Average Daily Rate) lower in the first three quarters of 2023 compared to 2022.
However, these figures remained higher than pre-pandemic rates, implying the hospitality industry has regained much ground in the last two years. Miami-Dade County also ranked third in the country in both RevPAR and ADR by the end of the fiscal year in September, 2023.
Hospitality sales were also lower in 2023 but sales prices were higher, with the average selling price of $35 million higher than last year’s $30 million. Almost 25% of transactions this year were for luxury properties, significantly higher than last year’s 10%, implying an increase in demand for this property type.
- Multifamily Properties
It comes as no surprise that the demand for multifamily properties is higher in Miami than in the rest of the U.S. During and after the pandemic, people were more interested in moving to areas with great weather and convenient access to nature. The multifamily sector is expected to remain strong due to favorable demographics.
Apartment buildings, assisted living facilities, single family rental (SFR) portfolios, and mobile home parks, are just some of the multifamily properties that can be found in Miami. The NAR report states that there is a higher demand for multifamily properties in Miami compared to the rest of the country in 2023. The vacancy rate is lower at 5.1% and rent prices increased faster at 1.2% over 12 months.
Current trends, challenges, and opportunities
The commercial real estate industry in Miami has gone through a lot of changes these past few years, and along with these changes came the good and the bad effects. Selling commercial property in Miami today can be relatively challenging, however, it can lead to a successful transaction with the right approach and direction. Undeniably, sellers will need to have more than just luck on their side if they want a profitable and successful sale; they will need the help of an experienced CRE professional.
Fortunately, Miami remains to be one of the best places to invest in commercial real estate for 2023 and beyond, so there’s a big chance that selling your business property will turn in huge profit. Now can be the best time to find a commercial real estate broker who can perfectly take on the role of guide and advocate for you.
THE ROLE OF A COMMERCIAL REAL ESTATE BROKER
A Miami commercial real estate broker specializes in helping clients sell, buy, rent, or lease nonresidential properties in the city. These professionals act as a middleman or a liaison between two or more parties in a commercial transaction.
Commercial real estate brokers are very knowledgeable on property management, financial analysis, current market data, and tax and zoning laws. They can also work with tenants, landlords, or both. While commercial real estate brokers start off with the same license as residential real estate professionals, they primarily work with properties used for business.
HOW A MIAMI COMMERCIAL REAL ESTATE BROKER CAN HELP WITH THE SELLING PROCESS
“I want to sell my commercial property. How can a commercial real estate broker help?”
To sell commercial properties successfully, a Miami commercial real estate broker needs to have experience, marketing knowledge, and a variety of other business skills. Here are just some important skills a real estate broker possesses that make their guidance invaluable.
Transaction Management
From the beginning of the transaction to the closing of the sale, a Miami commercial real estate broker will guide you throughout the process. You don’t have to worry about property valuation, inspections, and paperwork—you can let your commercial real estate broker handle all that for you.
With the help of a commercial real estate broker, you can make informed decisions about the entire selling process. At the onset, the broker will discuss important areas of the transaction with you such as identifying potential buyers, how the negotiation process works, and the requirements you need to fulfill on your end as a seller. Your broker will also ensure that all documents needed to secure a sale are accurately prepared and duly submitted.
Expert market knowledge
An experienced broker knows the ins and out of the Miami real estate market. They have in-depth knowledge about current market conditions, which they use in estimating future trends. When it comes to local laws, real estate brokers are there to ensure that the sale of your property fulfills all requirements and complies with Miami regulations.
Commercial real estate brokers are also highly proficient in Miami’s tax and zoning laws. Sellers often experience difficulties in keeping up with the complex rules and regulations surrounding the sale of commercial real estate. Having an experienced broker in your corner will enable you to have a clearer understanding of these laws while having the peace of mind that legalities are properly taken care of.
Effective marketing technique
Online listings, email campaigns, and print advertisements are just some of the marketing strategies used by a Miami real estate broker to sell commercial property. These are not cookie-cutter techniques, as a professional broker will customize a marketing strategy to suit your real estate goals. Marketing efforts should target the audience who are looking for a property similar to yours and who are most likely to push through with an offer.
Strategic pricing computation
To attract potential buyers, your commercial real estate property should be competitively priced. MIami real estate brokers assess economic trends, market indicators, and comparable sales in order to properly determine the value of a commercial property. Other factors like the location and features of your commercial property are also taken into account when providing a professional valuation.
Negotiation skills
Securing the best deals for a client is all about negotiation. Negotiation skills should be kept sharp if real estate brokers want to represent your best interests during a transaction, and effective communication is an integral part of the process. As the lease or sale of business properties may involve more than two parties, a commercial real estate broker has to be an exceptional negotiator.
Real estate brokers also ensure that all involved parties complete their transaction obligations. Apart from the transactional level, commercial real estate brokers also need to connect to their clients on a personal level because selling a property often has an emotional impact on the seller. A good commercial broker knows how to counsel the client in private to keep emotions out of the negotiations, saving time and reducing stress during the process.
Network exposure
Miami commercial brokers who have been in the industry for a long time have extensive network exposure. From landlords and tenants and to seasoned investors, commercial real estate brokers have established contacts throughout the industry. Through this network, they can target buyers who are interested in a property similar to yours for a faster turnaround time. When you work with a commercial real estate broker, their contacts become your contacts.
WHAT SELLERS NEED TO DO
”I want to sell my commercial property. What do I need to do?”
While there are still some requirements that you have to fulfill on your end, your Miami commercial real estate broker will take the most time-consuming and stress-inducing tasks off your hands. These are just some of the few things you need to do so that your professional broker can help you reach your transaction goals.
Prepare all documents needed
To provide the prospective buyer with all the necessary information about the property and to ensure a legally compliant sale, the seller must provide documents such as the following:
- Property documents, including zoning documents, third-party and environmental reports, and the survey of the property
- Title documents, including the deed and the title report
- Legal documents, including legal descriptions and property tax records
- Financial documents, including rent rolls, pro forma statements, and income and operating statements
- Lease documents, including lease copies and Tenant Estoppel certificates
- Insurance policies
- Utility bills and service contracts
- Warranties and guarantees
- Closing statement
- Bill of Sale
Provide the broker with the property’s history
Property history typically includes previous sales, leases, and mortgages. A building’s history has to be provided, including a service history particularly for the HVAC, roofing, and electrical systems. Current information about tax valuations, owners, and tenants should also be included.
Continued communication with the broker
The things you need to do as a seller and the requirements you need to provide may vary depending on the type of commercial property you are selling and on Miami local regulations. Prospective buyers may also request for additional information or further negotiation with you and your commercial real estate broker. This is the reason why keeping in constant communication with your broker during the entire process of selling commercial property is crucial.
Once you’ve done your part in the transaction process, you can rest easy that your broker is continuously working with your best interests in mind. You don’t have to spend countless hours finding the right buyer for your property, going through all the legal requirements, preparing marketing materials, and so on – your broker can do most of the hard work for you.
SELL YOUR MIAMI COMMERCIAL PROPERTY WITH CONFIDENCE
Choosing the right real estate broker is critical to a successful sale. When you have a Miami commercial real estate broker who can streamline the selling process, you can achieve your real estate goals with less stress and greater success.
Custom-tailored services for real estate success
I’m Rachel Goldman from The Goldman Group and I’m extremely confident that I can help you sell your commercial property in Miami. I have years of industry experience, in-depth knowledge of the local market, and an extensive network – all of which I leverage to provide you with the individualized service you need and help you close the best sale.
Let me help you achieve your commercial real estate goals. Book an appointment with me by calling 813.810.2829 or by sending an email here.