Commercial investment sales in Miami

How we take a Miami property to market

A sale goes best when the buyer’s questions are answered before they are asked. Miami buyers underwrite fast, and many of them are looking at deals in several cities at once. A clean package keeps your building in the running.

1. Opinion of value. We review rent rolls, operating statements, leases and the physical building, then give you a pricing range with the reasoning behind it, including which buyer types are likely to pay the most.
2. Pre-market cleanup. Estoppels drafted, lease abstracts prepared, open permits and code issues identified, and recertification or inspection status confirmed. Problems found now cost less than problems found by a buyer.
3. Data room. Financials, leases, surveys, title, environmental reports, building reports and photos organized so a buyer can underwrite in days, not weeks.
4. Marketing. Targeted outreach to local owners, private capital, out-of-state and New York investors, and exchange buyers, with an offering memorandum written for how each group underwrites.
5. Call for offers. We set a deadline, compare offers on price, deposit, timing, contingencies and buyer certainty, then run a best-and-final round if the interest supports it.
6. Contract to close. We manage due diligence requests, inspections, estoppels and the lender process alongside your attorney and title company until the deed is recorded.

Why expenses decide price in Miami

In Miami the income side of the underwriting is usually not where deals fall apart. Expenses are. Experienced buyers will rebuild your operating statement line by line, and two items get the most attention.

Property insurance

Coverage for wind and flood in South Florida has become a major operating cost, and buyers will get their own quotes during due diligence. If your current policy is unusually cheap, buyers may assume they cannot replicate it. We ask sellers to provide their policy, loss history and roof and opening documentation so a buyer’s insurance broker can quote accurately and quickly.

Real estate taxes after a sale

Florida limits annual increases in assessed value on non-homestead property, but that limit generally resets when ownership changes. A buyer will therefore underwrite taxes based on the purchase price, not your current bill. We model this in the offering so buyers trust the numbers and price is not cut late in the process. Confirm specifics with the property appraiser’s office and your CPA.

Repairs and reserves matter too. Buyers will look at the age of the roof, HVAC, electrical service and any deferred maintenance. Because our principal is a Florida Certified General Contractor, we can walk a building with you before listing and flag what a buyer’s inspector will find.

Building safety rules that affect sales

After the Surfside collapse in 2021, Florida added milestone inspection requirements for certain condominium and cooperative buildings, and Miami-Dade continues to run its own recertification program for older buildings. For investment sales this creates practical questions every buyer will ask.

• Is the building due for recertification or an inspection, and has it been completed?
• Were any repairs required, and are they finished and closed out with the building department?
• Are there open permits or code enforcement cases on the property?
• If the property includes condominium units, what is the status of reserve studies and any special assessments?

Rules have changed several times in recent years, so we confirm current requirements with the relevant building department for every listing. Having the answers in the data room removes one of the most common reasons for a re-trade.

Closing costs and customs in Miami-Dade

Florida charges documentary stamp tax on deeds, and Miami-Dade County has its own rate and a surtax on some property types that differs from the rest of the state. Who pays for doc stamps, title insurance and the survey is a matter of custom and negotiation, and custom in Miami-Dade is not always the same as in other Florida counties. We spell these items out in the letter of intent so neither side is surprised at closing. Your closing attorney or title agent should confirm the exact figures for your deal.

What buyers check by property type

Presenting a Miami asset to New York capital

We are licensed in both Florida and New York, and a good share of the buyers who call about Miami property are New York owners selling there and buying here. They know how to underwrite, but some Florida items are new to them.

• Insurance is a much larger share of expenses than they are used to, and quotes can move a lot from year to year.
• Tax reassessment on sale works differently than in New York, so they need to see the post-sale tax estimate.
• Building codes, hurricane rated openings and roof requirements affect capital planning.
• Closing customs, doc stamps and title practices differ from a New York closing.

Answering these points in the offering memorandum, before a buyer’s team asks, makes New York capital more comfortable paying full price. Owners on the New York side can read about our Manhattan investment sales and Brooklyn investment sales work.

Buying in Miami: our acquisition process

On the buy side we start with your criteria: asset type, size, target return, hold period, financing and how much work you will take on. Then we search listed inventory and reach out directly to owners in the submarkets that fit, which is where many of the better opportunities start.

Once we find a candidate, we build an underwriting model with our own insurance and tax assumptions, walk the building with a contractor’s eye, and estimate capital needs before you make an offer. During due diligence we coordinate inspections, review leases and estoppels, check permit history with the building department and help you prepare questions for your attorney and lender. If you are buying with exchange proceeds, we plan the search around your identification deadline.

Submarket notes for investors

Each part of Miami attracts different capital. In Brickell and Downtown, most investment activity involves towers, condo inventory and ground floor retail. Wynwood draws buyers for creative office, retail and mixed-use buildings, with zoning in the area shaped by its own special district rules. Doral is an industrial and flex market tied to the airport. Coral Gables and Miami Beach are separate cities with their own zoning and review processes, which affects redevelopment and repositioning plans. We tailor the buyer list and the story to the submarket.

Mistakes that cost Miami sellers money

• Pricing off a neighbor’s number without adjusting for insurance, taxes and building condition.
• Launching without estoppels, current rent rolls or a clean operating statement.
• Leaving open permits or code cases unresolved until a buyer finds them.
• Accepting the highest price from a buyer who cannot close, instead of the strongest overall offer.
• Letting due diligence run without deadlines, which invites late price reductions.

A hypothetical example: a small apartment building

This is a hypothetical scenario for illustration only. A family has owned a small apartment building in Miami for decades. Rents are below market, the roof is older, and the insurance renewal just came in much higher.

We would start by documenting the rent roll and leases, getting roof and opening records together, and pulling an insurance quote a buyer could rely on. We would then estimate post-sale taxes and present two stories to buyers: in-place income for a conservative buyer, and a renovation plan with estimated costs for a value-add buyer. Running both groups in one process gives the family the best chance at the strongest offer.

What goes in a Miami data room

Sellers often ask what they actually need to gather. This is the list we work from, adjusted for the property type.

Not every seller has all of this. That is fine. Knowing what is missing lets us explain it up front instead of letting a buyer use the gap to negotiate.

How we compare offers

The highest number is not always the best offer. We put every offer on one page and score it on the items that predict whether the deal actually closes at that price.

• Price and structure. All cash, new loan, assumption or seller financing.
• Deposit. Size, and when it goes hard (becomes non-refundable).
• Due diligence period. Length, and what the buyer plans to do during it.
• Financing contingency. Whether there is one, and the buyer’s lender relationship.
• Closing date. Fits your tax planning, exchange or reinvestment needs.
• Track record. Whether the buyer has closed similar deals in South Florida.

We talk to each serious bidder before you choose, so you understand who is really behind the offer.

Fees and how to start

Investment sales are usually paid as a commission at closing under a written listing agreement, with the rate depending on the size and complexity of the asset. On the buy side, compensation is typically paid by the seller or agreed with you in writing up front. We put every term in writing before work begins.

To get started, send us the property address, a recent rent roll and operating statement, and your goals and timing. We will come back with a value range and a recommended approach. Call or text 239-256-5005, email info@diberealestate.com, or reach us through the contact page. For land and redevelopment parcels, see Miami development sites, and for hold-versus-sell analysis, see Miami consulting.

Timing a sale in Miami

There is no perfect month to sell, but a few local calendar items can help or hurt a process, and they are worth planning around.

Insurance renewal

If your policy renews soon, a buyer will want to see the new premium. Launching right after renewal gives buyers a current number. Launching right before can create uncertainty that shows up as a lower offer.

Hurricane season

Storm season runs through the summer and fall. Deals close during these months all the time, but a storm during due diligence can pause inspections and insurance binding. We build some cushion into contract dates and make sure the contract addresses what happens if the property is damaged before closing.

Lease expirations

A major lease expiring soon after closing is a risk buyers will price in. Sometimes it pays to renew or extend a key tenant before going to market. Sometimes a vacancy is a selling point for a user-buyer or a redevelopment buyer. We look at both before recommending which way to go.

Tax year

Closing in one calendar year versus the next can matter for your taxes and for property tax prorations. Talk to your CPA about timing before we set the closing date.

Terms Miami sellers and buyers use

Owner-occupied buildings and sale-leasebacks

Many Miami business owners hold the building their company operates from: a warehouse in Doral, a showroom near the Design District, a medical office in Coral Gables. When it is time to free up that equity, there are two basic paths. You can sell vacant to another user, who may pay a premium because they need the space and can often finance on favorable terms. Or you can sell with your business staying as a tenant under a new lease, which appeals to investors who want a known occupant.

The right answer depends on whether you plan to stay, how long, and how much rent your business can carry. In a sale-leaseback, the lease you sign sets the value of the building, so the rent, term, increases and who pays for the roof and structure all need careful thought. We model both paths side by side, and if you are staying, we look at the new lease from the tenant’s point of view as well as the seller’s. Have your CPA weigh in on the tax side of either structure.

If you would rather lease elsewhere after selling, our Miami tenant representation team can line up your next space so the sale and the move are planned together.

Keeping a sale confidential from tenants and staff

Word travels quickly in Miami, and a rumor that a building is for sale can do real damage. Retail tenants start asking about their renewals, apartment residents worry about rent increases, and a property manager or maintenance staff may start looking for other work. That can show up in the numbers a buyer is reviewing.

For owners who want discretion, we run the sale in stages. Buyers sign a confidentiality agreement before they receive the address or the rent roll. Tours are scheduled as routine inspections where the leases allow access, and we coordinate them with the manager rather than sending buyers to knock on doors. We tell the owner when the circle of people who know needs to widen, for example once a buyer orders estoppels or a property condition report.

Leases usually spell out how much notice a landlord must give before entering a unit or suite, so we read them before scheduling anything. A quiet sale reaches fewer buyers than a full campaign, and we will say so plainly when that tradeoff costs the owner money.

When the buyer is really buying the land

In parts of Wynwood, the Design District and near the urban core, a low-rise building can be worth more to a developer than to an income investor. In that case the rent roll matters less than zoning, lot size, assemblage potential and how quickly existing leases can end.

We look at a property both ways before pricing it. If the redevelopment value is higher, the marketing package changes: it leads with zoning and site data, and we call developers instead of income buyers. Short-term leases or termination rights can add value to that buyer, while long leases may subtract from it. Our development sites team works on these with us, and the 1031 exchange page covers what sellers should ask their CPA about the proceeds.