Seagis Property Group announced today that it has acquired a 53,000 square foot distribution facility located at 10005 NW 58th Street in Doral.
The two-unit warehouse was purchased through a 50% sale-leaseback. There is currently a 26,500 SF vacancy available for immediate occupancy. The acquisition increases the Company’s South Florida portfolio to 110 buildings and over 5.6 million square feet.
In Prologis’ recent third quarter earnings call, CEO Hamid Moghadam was blunt in his assessment of the industrial sector’s supply-demand equilibrium:
“With vacancies at unprecedented lows, space in our markets is effectively sold out.”
It is, of course, little secret that industrial rents are at a premium and tenants are jockeying for what space they can find. But new details in Prologis’ Industrial Business Indicator report show just how much of an uphill climb supply will have before it meets current and future demand.
What so many Americans want, they can’t have yet. It’s probably sitting in a container aboard a cargo ship off of America’s coastline, waiting to be unloaded.
So many of the goods that Americans crave are made in China, which shut down its factories to help limit the spread of COVID. Now that they’re back up and running, Americans, with stimulus in hand and Christmas two months away, are gobbling them up.
And ports, mostly on the West Coast where Asian shipments generally offload, can’t keep up with the unprecedented demand. The supply is there, just not here on land.