Miami International Airport Buys Warehouse for $19 Million

Miami International Airport scooped up Duty Free Americas’ nearby warehouse for $19.2 million as part of its $14 billion decade-long expansion plan.

The airport plans to use the 68,000-square-foot industrial property at 1800 Northwest 70th Avenue for indoor storage and as a construction staging site tied to future projects under MIA’s “Modernization in Action Plan,” airport spokesperson Greg Chin said. Once modernization work is completed, the property is expected to be repositioned for revenue-generating commercial uses, he said.

Barry and Blake Katz of WGS Realty brokered the transaction. Barry Katz said the deal took nearly two years to complete. Duty Free Americas had owned the property for about 20 years.

“It was a challenging sale, but the one thing about them [MIA] is you know they’re going to close,” Katz said.

Katz said the transaction involved hurdles including permitting, zoning and easement-related issues.

He added that Duty Free Americas plans to relocate to a newer property, but declined to disclose the location.

The acquisition was financed through future aviation revenue bonds under MIA’s land acquisition subprogram, which is included in Miami-Dade Aviation Department’s proposed fiscal year 2025-2026 budget and multi-year capital plan, Chin said.

The purchase is the latest in a string of nearby acquisitions by the airport in recent years.

Miami-Dade County paid $17 million for a 3.4-acre industrial site at 3901 and 3975 Northwest 25th Street and 3900 Northwest 26th Street last year from San Francisco-based Prologis, with plans to also use the property as a staging area for improvements and expansion at the nearby airport.

In 2024, MIA acquired the six-story, 112,500-square-foot office building at 7200 Northwest 19th Street from Walton Street Capital for use by its aviation department. That same year, the aviation department paid $45 million for a 198,500-square-foot industrial complex spanning 11.5 acres at 2800 Northwest 39th Avenue from an entity led by Michael and Ronald Simkins.

MIA’s $14 billion capital improvement program includes more than 200 projects aimed at modernizing aging infrastructure and preparing the airport for future passenger and cargo growth.

The acquisition also comes as Miami-Dade’s industrial market is adjusting to a wave of new supply. Leasing activity remained strong in the first quarter, with 3.2 million square feet leased and asking rents rising 1.5 percent year over year to $17.04 per square foot, according to Colliers.

At the same time, about 1.4 million square feet of industrial developments were completed during the quarter, pushing vacancy up slightly to 7.1 percent from 6.9 percent in the prior quarter. Another 2.9 million square feet is under construction across South Florida.

Industrial cap rates in South Florida averaged 6.3 percent in the first quarter, as higher borrowing costs continued to affect investment sales, according to Colliers. Even so, pricing is relatively stable, suggesting buyers and sellers are beginning to align more closely on valuations.