Miami Office/Retail Buildings Fetch Submarket’s Highest Price PSF

Avison Young’s Florida Capital Markets group closed the sales of two retail and office buildings in South Miami.

The sales represent two consecutive record-breaking price-per-square-foot transactions for retail and office assets in Miami-Dade County’s South Miami submarket.

On behalf of the sellers, Avison Young Principals Michael T. Fay, who is also Managing Director of the firm’s Miami operations; John K. Crotty, CCIM; David Duckworth; Vice President Brian C. de la Fé; and Associates Emily Brais and Berkley Bloodworth completed the following transactions:

• Sunset One, a 9,674-square-foot retail and office building at 5875 Sunset Drive in South Miami, sold for $515 per square foot. The property features a stabilized and diverse mix of professional office and retail clients that persisted through the pandemic. With premier dual frontage and visibility from US-1 and Sunset Drive, Sunset One benefits from some of the highest traffic counts for high-street retail in Miami. Avison Young represented the seller, Robert Berrin of Capital Realty Services, Inc., in the disposition to 5875 Sunset Group LLC, a local private family office.

• 6050 S. Dixie Highway, a two-story retail and office building totaling 4,900 square-feet sold for a record-breaking $714 per square foot. The vacant property, previously the South Miami Pharmacy, is advantageously located adjacent to the South Miami Medical District with frontage along US-1 with entrances to both north and south commuters. Avison Young represented the seller, Dr. Armando Bardisa, Owner and CEO of SMP Pharmacy Solutions, in the disposition to Dr. Roger Khouri, owner of Miami Hand Center, to be used as an additional practice.

“One of Miami’s original live, work, and play environments, South Miami provides an eclectic high-density, mixed-use and low rise multi-tenant setting, complete with office, medical office, and retail,” said de la Fé. “Sunset One’s tenants are positioned to benefit significantly from the influx of residential units that will be delivered to the immediate area in the coming years.”

Since the start of 2021, retail-related property investment activity has picked up in South Miami with notable sales including the Shops at Sunset Place, which sold for $65.5 million, and the Winn-Dixie-anchored site in downtown South Miami, which sold for $18.95 million. As investor confidence steadily ramps up, multi-use properties with high-visibility on highly-trafficked roadways will continue to achieve higher pricing.

“The market’s limited inventory, diverse opportunities, and premier locations provided the perfect equation for the properties to sell at record prices-per-square foot,” said Brais.