South Florida’s industrial real estate market is a bit of a contrarian.
Although leasing across asset classes took a hit this year, partly due to inflation and escalating interest rates that paused tenants’ plans, warehouses, distribution centers and manufacturing facilities felt none of the pain.
The market “is at an all-time high for the last 35 years,” said George Pino, who has been an industrial broker for that long.
Landlords responded to demand by increasing industrial rents to record levels. In the third quarter, Miami-Dade County’s median asking rents increased 14 percent, year-over-year, according to JLL. In Broward County, rents jumped 16 percent, and in Palm Beach County, 18 percent, year-over-year.
Pino, of State Street Realty, said in his three-decade plus career, he’s never seen triple-net asking rents like those this year: On average $25 per square foot for buildings less than 30,000 square feet, and $20 a foot for bigger properties.
The growth of e-commerce and the supply-chain backlog, both of which ensued from the pandemic, led industrial tenants to try to catch up with their customers’ pent-up demand this year and, in turn, lease more space.
Case in point: Logistics companies, or the firms that help in the transportation of goods, signed four of this year’s 11 biggest deals.
“The pandemic was like rocket fuel for us in terms of the demand, primarily because of online ordering and the backup of the supply chain,” Pino said. “Our customers had to increase inventory because they didn’t want to get caught into the supply-chain issues. When the amount of online ordering increased, they also had to take more space to fill orders.”
Here are this year’s top 11 industrial leases in South Florida.
Iberia Foods signs year’s biggest deal
A Miami-based food and beverage distributor signed this year’s biggest industrial lease.
Iberia Foods took 398,000 square feet in Building B, at 21201 Northwest 43rd Avenue in Miami Gardens, at the Bridge Point Commerce Center, marking the biggest lease this year. Iberia, founded in 1930, specializes in distributing brands from Latin America, the Caribbean and Spain.
Chicago-based Bridge Industrial is developing Bridge Point Commerce Center in phases, completing Building B in 2020, records show.
Glassmaker opens in Pembroke Pines
A newly formed glass manufacturing firm will start production early next year in Pembroke Pines.
All Glass Production leased the nearly 250,000-square-foot Building B at 20351 Sheridan Street at the South Florida Logistics Center.
All Glass, which already moved into the space, will have roughly 200 employees by the time manufacturing is fully operational late next year, according to the tenant’s broker, Alex Bernaldo of Americas Commercial Real Estate.
Frank Mata founded All Glass last year after selling his Eco Window Systems, EcoGlass Production and Unity Windows businesses. All Glass makes impact windows for residential and commercial buildings.
The South Florida Logistics Center building is owned by Denver-based Sagard Real Estate, previously called EverWest Real Estate Investors, records show.
Mattress manufacturer stays in Riviera Beach
Serta Simmons Bedding kept its Riviera Beach plant.
The mattress manufacturer renewed its 225,000-square-foot lease at 3774 Interstate Park Road North.
The manufacturing facility, completed in 1996 on 14.4 acres, was originally developed for Doraville, Georgia-based Serta Simmons. The mattress firm is led by Mark Genender.
In 2020, an affiliate of Serta Simmons sold the building to Dallas-based Dalfen Industrial for $25.3 million.
Jet engines repairer takes third place with Coral Springs lease
CTS Engines will move its headquarters to the newly built Osprey Logistics Park.
The MRO firm, or maintenance, repair and overhaul provider for aircraft engines, leased more than 216,000 square feet at 12000 Northwest 39th Street in Coral Springs. CTS, now based at 3060 Southwest Second Avenue in Fort Lauderdale, will move to Osprey next year, according to Steven Wasserman, one of the Colliers brokers who represented the tenant.
Orlando-based Foundry Commercial completed Osprey Logistics Park late this year, said Matthew McAllister, one of the Cushman & Wakefield brokers who represented the landlord.
The two-building campus has 427,500 square feet of industrial space on 22 acres.
Drinking the Coral Springs Pepsi
Pepsi leased space in the Broward County city for a distribution center.
The soft drinks company took 215,500 square feet at Building D at 4000 Northwest 126th Avenue in The Corporate Park of Coral Springs. Pepsi opened the facility this year with roughly 250 employees, according to media reports.
The deal marked a turnaround for the building, as Amazon previously pulled the plug on a plan to move into the property.
Records show Radnor, Pennsylvania-based EQT Exeter owns the building.
Logistics firm picks Medley
JAS Worldwide leased a building at the recently completed First Park Miami industrial complex in Medley.
The freight forwarding, customs brokerage and supply chain firm took more than 198,000 square feet at 8406 Northwest 90th Street. The lease term is for 10 years, according to real estate social media account Traded.
Chicago-based First Industrial is developing the 2.5 million-square-foot First Park Miami with 13 buildings, according to a project brochure. Records show the building that JAS leased was completed last year.
Logistics Plus leases in north Miami-Dade County
Logistics Plus will open an industrial facility at the Miami Midway Park that’s under construction in north Miami-Dade County.
The Erie, Pennsylvania-based firm leased over 181,000 square feet at the complex on the northeast corner of Northwest 174th Street and Northwest 97th Avenue in unincorporated Miami-Dade.
Coconut Creek-based Butters Construction & Development and Charleston, South Carolina-based Greystar are developing the four-building Miami Midway Park with 505,500 square feet of space on 25 acres.
Completion is expected early next year, which also is when Logistics Plus is expected to open at the campus, according to State Street Realty’s George Pino, one of the brokers leasing Miami Midway Park.
ANDA Generics takes on Weston
A pharmaceuticals distribution firm stayed put in Weston.
ANDA Generics renewed its 152,200-square-foot lease at 2915 Weston Road in Building A at the Weston Business Center.
ANDA, an independent wholly owned subsidiary of Teva Pharmaceutical Industries, distributes generic, brand and specialty pharmaceuticals, as well as injectables, vaccines, tests and pet medications, among other products, to health care providers, according to its website.
Records show the Teachers Insurance and Annuity Association of America, or TIAA, owns the Weston building.
Toolmaker stays in Miramar
An industrial tools and household hardware manufacturer stayed put at the Miramar Park of Commerce.
Stanley Black & Decker renewed its 150,000-square-foot lease at 9850 Premier Parkway in Miramar.
The deal came amid a leasing flurry this fall at the Miramar industrial campus. At the time, Walgreens expanded its space to 63,200 square feet by taking an additional 11,300 square feet for a training facility. Also, baked goods company Pepperidge Farm renewed its 16,300-square-foot lease.
The billionaire Ansin family’s Sunbeam Properties, owners of Miami’s FOX affiliate, WSVN-Channel 7, developed and still owns the Miramar Park of Commerce.
Interport Logistics leases in Sweetwater
A logistics services company leased at Prologis’ Beacon Lakes business campus.
Interport Logistics took 146,800 square feet at 12950 Northwest 25th Street in Sweetwater.
Led by Jose De Vivero, Miami-based Interport was founded in 2000 and offers warehousing, distribution, third-party logistics, customs brokerage and consulting services, according to its website.
San Francisco-based Prologis, led by Hamid Moghadam, developed the 436-acre Beacon Lakes that’s roughly from Florida’s Turnpike to Northwest 137th Avenue and from Northwest 12th Street to 25th Street. The master-planned business park includes offices and retail.
Prologis isn’t finished adding to Beacon Lakes. Last year, the firm filed an application to build four warehouses at the campus that would add 500,000 square feet.
Another logistics firm signs big lease, this time in Weston
Specialized Freight Carriers leased an entire building at Weston Commerce Park.
The firm, which provides logistics services connecting Florida to the Northeast U.S., took 134,000 square feet at 1951 North Commerce Parkway in Weston. Specialized Freight, which is based elsewhere in Weston, will use the warehouse for third-party logistics.
Records show Ridgeland, Mississippi-based EastGroup Properties owns Weston Commerce Park.
Source: TRD analysis of brokerage data, as provided by Colliers and Cushman & Wakefield.