Broward Industrial Submarket Demand Rising

FORT LAUDERDALE, FL—It's one of the largest industrial lease renewals in Broward County in recent months. KeHE Distributors just inked a 201,849-square-foot renewal at Meridian Business Campus.

Wayne Schuchts, principal with Avison Young, represented KeHE in the lease. The deal means the tenant will continue to occupy 100% of the two-story industrial building within the campus, which is located at 3225 Meridian Parkway in the Fort Lauderdale suburb of Weston, FL.

“Despite the recent strengthening of the industrial market in Broward, we were able to successfully negotiate a favorable lease for our client and in a location that continued to meet their space requirements, convenience in location, and economic value,” says Schuchts. Broward County's industrial market reached the lowest vacancy rate since 2008 in fourth quarter of 2014, averaging 6.5%, according to Avison's research.

With the average user in the Broward market occupying 29,000 square feet and the median building size at 30,000 square feet, large blocks of space for 50,000 square feet and above are relatively sparse, Avison reports. This is compounded by the fact that activity and demand for warehouse space is increasing, resulting in over 470,000 square feet of absorption during the fourth quarter of 2014 in South Broward.

“Demand for industrial space in Broward submarkets has heightened and is prompting tenants to compete for a narrowing supply of quality space,” says Schuchts. “Our unique analytics and market knowledge led to extracting various advantages in advising our client to renew their lease position.”

KeHE distributes natural, specialty, multicultural and fresh products to natural food stores, chain grocery stores, independent grocery stores, and other specialty product retailers throughout North America. Located in Southwest Broward with direct access to Florida's major roadways, Clarion Partners owns Meridian Business Campus. It offers KeHE fast and efficient operations, easy commuting for employees and it's close to international airports in Fort Lauderdale, Miami, and West Palm Beach.