Industrial Development Sizzles
Demand is so strong for Class-A industrial space in South Florida, State Street Realty prez George Pino tells us, that most new product leases up before the first truck ever shows up to unload. (Warehouses are more exclusive than Miami nightclubs.) In the last two months, State Street has closed on 175k SF in leases, much of it industrial.
In short, industrial's having its best year since '07, though some markets are enjoying the boom more than others, George says. “New industrial development will continue strongest in '14 and through '15 in the MIA, Medley, and Hialeah submarkets." Marketwide, 1.3M SF of industrial is under construction and 3M SF is in the pipeline. The demand is there. He expects all the newly constructed Class-A product to be absorbed, since tenants want new building features.
These features include 28-ft to 36-ft clear heights, wider column widths, deep and secure truck courts, and high-efficiency T-5 lighting. Recent deals for State Street include Everwell Parts renewing and expanding into 37k SF and Talwin Transport Service leasing 13k SF at Prologis Beacon Industrial Park. George and colleague Ed Lyden repped Prologis in those deals.
