Transwestern’s South Florida industrial team has secured a 44,101-square-foot lease renewal with Univar USA at a 64,086-square-foot industrial building at 7120 NW 74th Ave. in Miami.
Ask any industrial broker about the most important feature to industrial tenants looking for a new facility and they’ll say “location.”
After that, it’s probably going to be clear height, with at least 32 feet, but preferably 36 or 40 feet, especially for large users (those taking 500 to 1,000 sq. ft. or more).
But according to Blaine Kelley, Atlanta-based senior vice president of the global supply chain practice with real estate services firm CBRE, tenants will trade off all other physical features for proximity to customers, labor and suppliers.
At its core, South Florida is a narrow strip of land between the ocean and the Everglades. Those geographic constraints keep land prices rising, a phenomenon that is especially noticeable in the industrial sector, where rental rates are setting new records.
Miami’s average industrial asking rents reached an all-time high, $9 per SF, in Q4, according to CBRE, jumping nearly 50% in five years. JLL Managing Director Brian Smith said they have since inched even higher, with rates today around $10.25 per SF.