EastGroup Debuting In Miami-Dade With 200K SF Spec Warehouse
As Miami's industrial market sees vacancy rates below 4%, Mississippi-based EastGroup Properties is rolling the dice on an 850K SF industrial park for its Miami-Dade County debut.
EastGroup has tied up a 61-acre site that was formerly the practice track for Calder Race Course with plans to develop an industrial park of up to five buildings. The developer plans to break ground later this year on a 200K SF multi-tenant warehouse without any tenants pre-leasing spaces, JLL Senior Vice President Audley Bosch said. Bosch is among a team at JLL tapped by EastGroup to lease the project, called Gateway Commerce Park.
He said the park — off Exit 27 on the Florida Turnpike — is in equal proximity to Fort Lauderdale/Hollywood International Airport, Miami International Airport, Port Everglades and Port Miami. The first building is expected to deliver in the middle of 2018. Total potential cost of the project was undisclosed.
EastGroup could be entering the South Florida industrial market during a strong period for landlords. With the occupancy rate at 3.8%, rents continue to rise, with the current average now more than $7/SF, and even more for newer projects, according to a recent JLL report. And the first quarter alone saw 700K SF of industrial space leased up by companies.
That also is spurring on new development. According to JLL, developers have started more than 2.5M SF of industrial projects as of the first quarter.
“These developments come at a crucial time as Miami's industrial market is becoming increasingly attractive to sizeable tenants seeking larger blocks of space. We expect to see more big-name companies capitalize on growth opportunities and sign bigger deals,” JLL officials stated in the report.
