The Coral Gables market remains a destination for multinational companies searching for space. With approximately 200 multinational companies currently calling it home, Coral Gables truly is an international community.
Retail
The retail market in Miami has been hit hard by the coronavirus pandemic with mandated closures of shops, restaurants, health and grooming, and other retailers throughout 2020. Overall, the amount of retail space under construction across the region is down by about 1 million SF from the end of last year.
The Coral Gables retail market still has 324,000 SF currently under construction, which ranks as the seventh submarket in the metro-Miami pipeline. Market rents average $37.86 per SF at the end of Q4 2020, down 0.1% from the end of 2019. The vacancy rate is 4.4% to close the year. The impact of Coronavirus continues to be seen in Coral Gables.
Though retail investment has been declining in the larger region, there were several large sales in Q2 2020. The largest deal since the lockdowns began was the sale of Plaza San Remo in Coral Gables. The 60,000-SF Whole Foods-anchored retail property is on the ground floor of a 100,000-SF, seven-story mixed-use building, which includes office space and a parking garage.
Office
In the office sector, vacancy rose to 10.5% with 109,949,487 SF available at the end of 2020 with the average market rent at $39.56 per SF at year’s end. Coral Gables ended the quarter with an additional 3,658,306 SF of office space under construction due to the new Gables Plaza project. In 20Q4, work completed on the North Tower at The Plaza Coral Gables. The South Tower is under construction and set to deliver late next year. The combined 537,000 SF of 4- & 5-Star office space will expand the submarket’s inventory by nearly 5%. There is 370,000 SF of space that remains available in the project, at asking rents between $55-$62/SF.
The economic uncertainty from the coronavirus pandemic has had an impact on investment sales, and in Miami, office sales volume in 2020 is on pace to be below $1 billion for the first time in eight years. The 12-month sales volume is $644,961,717.
Despite muted leasing and rising vacancies in the short term, we believe the Coral Gables office market will have a strong recovery. Now may be a good time to secure a favorable lease rate on office space while inventory exists, giving tenants more options for affordable rents, especially if entering large, long-term commitments.
FEATURED LISTING! // $32.00 – $34/SF //
This completely renovated street-level retail plaza features six retail bays with direct frontage on Ponce de Leon Boulevard and two retail bays on Mendoza Avenue. Mid-Modern Century Art Deco design with upgrades including new roof, HVAC systems, ADA compliant restrooms, impact-resistant windows and doors, electrical panels, illuminated signage connections, and more. Spaces range from 519 – 1,577 sq. ft. and may be combined.
Contact:
John C. Lonardo, CCIM jlonardo@comreal.com 305-213-4050
Lisa A. Tenn ltenn@comreal.com 305-978-9455
Available Listings
The subject property consists of three ground-level retail bays and two second-floor apartments totaling 4,618 SF. Located on the corner of SW 8th Street and SW 60th Court, the property has excellent exposure to commuters traveling in each direction on SW 8th Street, presenting excellent signage opportunity for tenants or an investor/user. For Sale: $1,590,000
Contact: Gavin A. Winston gwinston@comreal.com 312-618-0162
Ground-level retail space located in a mixed-use building Building is well located at the entrance of one of the main arterials into the Coconut Grove Business District 40’ frontage on Grand Avenue Ideal for Retail & Office use
Negotiable Lease Rate!
Contact: Lisa A. Tenn ltenn@comreal.com
305-978-9455
Second-floor office space with private entrance delivering approximately +/-1,000 Square Feet. The space includes three private offices, reception, open workstation, and full private restroom. Parking is available onsite located directly behind the building with additional parking available on Coral Way. 2221 Coral Way is strategically located on a major East / West thoroughfare connecting Coral Gables and Brickell. The annual average daily traffic count is approximately 35,000 cars. For Lease: $24.00/SF (MG)
Contact: Gavin A. Winston gwinston@comreal.com 312-618-0162
The ComReal Coral Gables Team
ComReal is proud to celebrate our 40th year in South Florida Commercial Real Estate. Since 1979, we have earned our status as a respected leader in the community and as an early adopter of technologies. Our expert teams work with local companies with single requirements, as well as national and international firms with large portfolios and complex transactional needs. ComReal was named one of the Top 25 Commercial Real Estate Brokerages by South Florida Business Journal earlier this year. With a formidable reputation and the experience to back it up, it’s no wonder that ComReal is Commercial Real Estate.
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