Miami Beach Hotel Market Sees Renaissance
MIAMI BEACH—Could a Hyatt hotel be coming to Miami Beach? Possibly, since
Hersha Hospitality Trust bought the 263-
room Marriott Courtyard and has ties
with the Hyatt brand.
How about a hotel-casino in South
Beach? Wynn Resorts chairman Steve
Wynn told the local press recently that
he liked the Miami Beach Convention
Center site to develop such a property.
The point is this: Whether trading,
renovating or developing, Miami Beach’s
hotel market is on fire. According to the
Aztec Group, 11 hotels have traded in
Miami-Dade County this year, and seven
of those assets were in Miami Beach. The
total transaction price on the 1,676
rooms was about $345 million. Miami
Beach saw $255 million, or 74%, of that
What’s more, Gregory Rumpel, man-
aging director for Jones Lang LaSalle
Hotels, who brokered the Marriott
Courtyard deal and several others on
Miami Beach this year, says he has
another $350 million in transactions due
to close in the next 30 to 60 days.
Miami’s Industrial Market Gets Port Happy
US imports from Asian markets continue to grow as the economy slowly recovers. And this seems to be just the beginning.
Imports from China, especially, are anticipated to increase
over the next several years. The increased traffic from Asia has
created a funnel effect, moving cargo from the Far East to the
These and several other factors are driving major investments in ports. Currently,
growing need to move more cargo through the most expedient routes to eastern US markets, the creation of a new lock
system in addition to the current one is necessary. This will
then allow much larger ships to cross the oceans via the
The canal expansion is a big game changer for the ports
and, by association, the industrial markets that are connected
to them. We predict that no market in Florida is likely to be as
affected as much as Miami when the long-awaited expansion is
completed in 2014.
The State of Florida funded a $77-million dredging project
for the Port of Miami in March, and it’s on track to be com-
By John Vaught
pleted in time to receive the largest of the new ships coming
through the canal in 2014. These larger ships require up to 50
feet of depth to navigate fully loaded through the channels.
Currently, Norfolk, VA is the southernmost city that can
accommodate the post-Panamax cargo ships.
With the Port of Miami proceeding with dredging, other
capital improvements will make moving cargo through the
port even more attractive for logistic firms. Infrastructure
improvements include a tunnel that will allow traffic to bypass
Downtown Miami and go directly onto Interstate highways.
Further, investment into on-dock rail systems inside the port
as well as rail lines that run out to the western portion of
Miami-Dade County, where the prime industrial properties
are located, will aid in moving cargo.
The investment into the port from state and private funding is spurring optimism in the Miami industrial market.
Companies, especially those that likely will see increased business from port activity, are taking action by signing new leases
and purchasing properties. Additionally, development of new
distribution space is anticipated to begin within the next six
months. The primary focus of the new construction is on
warehouses in close proximity to rail lines that run to the port
and will be actively carrying cargo.
John Vaught is the Miami-based first vice president for CBRE. He may be
contacted at email@example.com. The views expressed here are the
Vital Signs...Store openings lowered Orlando’s retail vacancy in 2011, but the market is still short of pre-recession levels.—Marcus & Millichap