Investors today are finding it difficult to resist the siren song of industrial outdoor storage, that alluring array of fenced-in parking lots for trucks.
IOS has rapidly become one of commercial real estate’s hottest asset classes as a flood of new money has sent prices sky-high. But investors looking to enter the space may crash on the rocks of an industry that is trickier — and less like the rest of the industrial market — than first meets the eye, and the talent pool of people with expertise in navigating the hazards is limited.
The Easton Group arranged the sale of a 21,890-square-foot warehouse/distribution facility in Doral just off 107th Avenue, north of the Florida Turnpike.
Andrew Easton and Michael Foxwell of Easton represented the seller, PL Developments, a manufacturer and distributor of over-the-counter (OTC) pharmaceuticals and consumer healthcare goods. Vivian Gonzalez of Cushman & Wakefield represented the buyer, Florida Baby Food, which paid $6.895 million for the property. PL Developments relocated to a larger facility in Miami-Dade.
The outlook for the industrial real estate market is looking brighter than expected, according to the latest NAIOP Industrial Space Demand Forecast.
The forecast has been revised upward from August 2022 to account for the resilient economy and amended historical net absorption data, NAIOP, the commercial real estate development association, said. Despite rising interest rates and the growth of new space being developed, low vacancy rates will continue to support growth in rents and property values.