Colliers Says South Florida’s Industrial Market Fundamentals Strong Despite Signs of Moderation
The industrial lease deals negotiated by the Colliers team, headed by Jonathan Kingsley and Stephen Rutchik, were valued at more than $36 million.
MIAMI—Against a backdrop of what the firm says is a moderating South Florida industrial market, the Colliers International South Florida leading advisory team has closed nearly a dozen industrial lease transactions totaling 360,000 square feet during the first half of this year.
Colliers’ director of industrial leasing Ryan Goggins said, “While we have seen some moderation in South Florida’s industrial market coming off of a strong 2018, the market’s overall fundamentals remain strong and we remain optimistic about economic conditions and demand for additional industrial space as the region continues to grow.”
The industrial lease deals negotiated by the Colliers team, headed by Jonathan Kingsley and Stephen Rutchik, were valued at more than $36 million.
The team represented Maintenance Supply Headquarters in a 97,183-square-foot lease at Gateway Commerce Park in Miami valued at $7.4 million. On the agency side, the team closed approximately 250,000 square feet of new industrial leases and 113,000 square feet of lease renewals for a total value of more than $36 million. The largest new leases include representing Sunbeam Properties in a 51,836-square-foot lease to Walgreens at Miramar Park of Commerce and representing Nuveen in a 66,270-square-foot lease to Sonny’s Car Wash Factory at Westpoint Industrial Centre in Tamarac.
Colliers leasing activity outperformed the market, which is beginning to show signs of moderation. According to Colliers International’s First Quarter 2019 Industrial Market Report, vacancy rates increased slightly during the first quarter to 4% with rental rates slightly decreasing to an average of $9.47-per-square-foot within Miami-Dade County.
Colliers represented Nuveen in closing a half dozen leases at Pointe West Commerce Center in Davie and at Westpoint Industrial Centre in Tamarac, totaling 190,512 square feet for a value of nearly $18.2 million across the portfolio., including the 41,000-square-foot lease renewal valued at $5.9 million to KSM Electronics in Tamarac. Goggins also closed a 23,400-square-foot lease renewal valued at $1.2 million to Rick Case Cycles at Nuveen’s Pointe West in Davie.
The Kingsley-Rutchik leasing advisory represented Sunbeam Properties at Miramar Park of Commerce with a trio of new industrial/flex leases totaling 72,690 square feet with total value of $10.5 million. The new tenants include Walgreens, represented by Cushman and Wakefield, CPS Products, an international manufacturer of technical tools, represented by Colliers International’s Erin Byers, and Coverall North America, represented by Mohr Partners
The team’s strong performance in closing industrial leases within South Florida follows its track record of success in the South Florida office market. Previously, the firm announced the Kingsley-Rutchik team closed 17 office lease transactions, totaling more than 186,000 square feet with a value of nearly $48 million within Broward County during the first quarter of 2019.