Miami’s industrial market is booming with big leases singing and new development breaking ground.
Primesource Building Products just inked a 139,105-square-foot industrial renewal transaction within Flagler Station, South Florida’s largest business park.
Avison Young principal Wayne Schuchts and associate Andrew Bonner completed the transaction.
Primesource occupies the entire industrial building, which is located at 11700 Northwest 100th Road within Flagler Station in the Miami submarket of Medley.
“Vacancy is steadying at its lowest level in years at under 4%, and we are forecasting the trend to continue throughout the remainder of the year,” Bonner tells GlobeSt.com. “There is a confluence of change within the industrial market as demand persists from traditional users and growing e-commerce companies.”
Miami-Dade County’s industrial market remained stable at 3.4% at the close of the first quarter 2016, a trend continuing from 2015. According to market reports, Medley was one of three submarkets experiencing the most positive activity along with Central Dade and Airport/Doral.
“Demand for industrial space throughout South Florida is extremely high, particularly in Miami-Dade with absorption at nearly four times more than Broward and Palm Beach and nearly double the relative absorption, market research shows,” Schuchts says. “As such, tenants—especially larger space users—are competing for a narrow supply of quality space, prompting a renewal trend across markets. Despite the persistent strengthening of the industrial market in Miami-Dade, we were able to successfully negotiate a favorable lease at a location that continues to meet our client’s space requirements, convenience in location, and economic value.”
Primesource saw Flagler Station as a strategic location. The company is one of the largest purveyors of fasteners in the world and one of the largest distributors of building materials in North America. Ryder System, FedEx, and Crowley are among the park’s tenants.
“With the new construction taking place at Flagler Station, our analysis of market trends and Primesource’s space needs—both current and potentially forthcoming, including the option for the company to expand—led to the identification of the advantages our client would gain in the renegotiation and renewal of the deal,” Bonner says,