Industrial lease deals in South Florida are getting larger and happening more frequently, commercial brokers say.
Erin Byers, vice president of Colliers International South Florida said leased spaces have grown over the past five years. The top 10 deals five years ago would only sometimes hit the 100,000-square-foot mark. “Now, almost all the deal sizes are in the 80,000 square foot range and up,” she said.
CBRE’s Tony Hoover sees a similar trend. He represented tech startup ShipMonk in its recent 170,447-square-foot lease deal at Bridge Point Riverbend, a speculative 221,542-square-foot industrial building close to completion in Fort Lauderdale. Byers represented the landlord.
“Building a speculative 220,000-square-foot project sounds risky, but there’s a market there to absorb it,” Hoover said.
Here, The Real Deal breaks down this year’s five largest industrial lease deals in South Florida, ranging from 200,000 square feet to about 257,000 square feet. The data is from Colliers International South Florida.
Nestlé leases entire building in northwest Miami-Dade
The thirst for industrial space led to Nestlé Waters North America’s 257,000-square-foot lease at the Airport North Logistics Park.
The company filled an entire building at 8501 Northwest 80th Street, and takes nearly one-third of the space at the 900,000-square-foot, three-building logistics park in northwest Miami-Dade.
L&B Realty Advisors, based in Dallas, owns the industrial park. Cushman & Wakefield’s Wayne Ramoski, Gian Rodriguez and Skylar Stein represented L&B, while CBRE’s Tom O’Loughlin, Marineh Dermovsesian and Larry Genet represented Nestlé Waters.
The company has 15 brands under its umbrella, including Zephryhills. Nestlé Waters is a subsidiary of the Switzerland-based food and beverage company Nestle, S.A.
USL Cargo Services occupies distribution center in Weston
Logistics company USL Cargo Services came in second place, but is still one of the largest lease deals in Broward County so far this year.
The company occupied an entire 232,000-square-foot warehouse in Weston. The distribution center at 3245 Meridian Parkway was previously vacant. It takes up about 11 acres within the Weston Meridian Business Campus, near I-75.
O’Loughlin and Genet negotiated the full-building lease on behalf of landlord Clarion Partners.
USL Cargo Services handles air and sea freight and provides storage for dry and refrigerated cargo. It was launched in 2015 when it partnered with Hong Kong-based Cargo Services Far East Limited.
Postal Center International heads to Weston
Postal Center International, a print, mail and marketing company plans to move into a 224,650-square-foot office building at 2965 West Corporate Lakes Boulevard in early summer 2019.
The company signed the lease over the summer. The landlord is Teachers Insurance and Annuity Association of America or TIAA. CBRE Senior Vice President Tom O’Loughlin, Senior Vice President Larry Dinner and First Vice President Larry Genet arranged a 224,650-square-foot lease deal on behalf of TH Real Estate, an affiliate of Nuveen (the investment management arm of TIAA), one of the largest real estate investment managers in the world with $109B in assets under management.
The climate-controlled building offers about 30,000 square feet of office space, 30-foot clear heights, 32 dock-high doors, two drive-in ramps and 296 parking spaces.
Emser Tile inks lease at new industrial building in Coral Springs
Over the summer, Emser Tiles inked a 215,486-square-foot lease within the Coral Springs Commerce Center for one of its new distribution centers.
The company moved in in late September, according to representative at the company. Emser has three other distribution centers in the United States.
The building at 4030 Northwest 126 Street was recently developed by Pennsylvania-based Exeter Property Group. The second phase of Coral Springs Commerce Center will consist of three speculative industrial buildings.
Exeter acquired the 40-acre property last year from a Swiss manufacturing company called Hoerbiger.
Dufry signs lease for future HQ at Prologis’ Beacon Lakes
Swiss travel retailer Dufry inked the fifth largest lease deal in February when it signed a 200,000-square-foot contract at Prologis’ Beacon Lakes business park in northwest Miami-Dade County.
Dufry plans to move into its new headquarters by the first quarter of 2019. The build-to-suit warehouse space will add 40,000 square feet to the retailer’s current footprint in the area.
The property is located on the southeast corner of Northwest 137th Avenue and Northwest 14th Street, between Northwest 14th and State Road 836. Dufry formerly operated out of a 160,000-square-foot space at the nearby International Corporate Park in Doral.
The 478-acre Beacon Lakes has signed on tenants such as Amazon, UPS, Ryder System, and NBCUniversal Telemundo Enterprises.
The top 5 South Florida industrial leases signed in 2018
| Rank | Property | Address | Square Feet | Tenant | Landlord | Brokerage(s) |
|---|---|---|---|---|---|---|
| 1 | Airport North Logistics Park | 8501 Northwest 80th Street | 257,074 | Nestlé Waters North America | L&B Realty Advisors | Cushman & Wakefield; CBRE |
| 2 | Meridian Business Campus | 3245 Meridian Parkway | 230,600 | USL Cargo Services | Clarion Partners | CBRE |
| 3 | Weston Business Center | 2965 West Corporate Lakes Boulevard | 224,650 | Postal Center International | TH Real Estate | Cushman & Wakefield; CBRE |
| 4 | Coral Springs Commerce Center | 4030 Northwest 126th Avenue | 215,486 | Emser Tile | Exeter Property Group | In-house |
| 5 | Beacon Lakes | 13650 Northwest 17th Street | 200,000 | Dufry | Prologis | Blanca Commercial Real Estate; JLL |
Source: The Real Deal
Larry W. Genet is a Senior Vice President in the CBRE, Inc. Miami, FL office. As part of the CBRE platform Mr. Genet can provide a wide range of services from local to Fortune 1000 clients including agency and tenant representation, asset or portfolio management, high level logistics, labor and data analytics prior to site selection, project/construction management, capital markets, owner user sales and valuation advisory services. CBRE is the global leader for real estate services worldwide.
Larry has extensive experience in landlord agency, tenant representation, acquisitions, dispositions and property management. As a third-generation commercial real estate professional and South Florida native, Larry boasts deep community ties, an intimate knowledge of the South Florida market and numerous professional contacts. Larry’s leasing expertise of industrial, office, land, retail and medical properties coupled with his experience in acquisitions and dispositions gives him the ability to represent a myriad of clients in the South Florida market. Additionally, Larry controls a portfolio of 13.5 million square feet allowing him to see every deal in the market. This ensures his clients never miss an opportunity. His knowledge of tenants and buyers in the market is top notch and when coupled with his team's vast portfolio, it's a winning combination.
