South Florida’s industrial market started showing signs of softening this year.
The three biggest leases signed this year were for 200,000 square feet or more, while last year five leases broke this size threshold. In 2022, two leases were for more than 500,000 square feet.
In the years immediately after the pandemic’s onset, South Florida’s industrial market boomed, partly due to e-commerce’s growth. Also, because the tri-county region is sandwiched between the Everglades and the Atlantic Ocean, developable land has always been scarce. This resulted in low vacancies and record rents in some submarkets.
Yet, industrial vacancies crept up in each of Miami-Dade, Broward and Palm Beach county in the third quarter of this year, according to a Colliers report. Miami-Dade’s vacancy rate was 4.9 percent, up from 2.6 percent during the same period of last year. Broward’s vacancy rate inched up to 4.9 percent, compared to 4.7 percent for the same period of last year; and Palm Beach’s rate hit 6.8 percent, up from 4.9 percent in the third quarter of last year.
In Miami-Dade, landlords dropped the average asking rent for the second quarter in a row. The asking rent hit $16.42 per square foot, down from $17.16 a square foot during the same period of last year.
Still, Miami-Dade scored seven of this year’s leases, and Broward landed three leases this year.
Here are the 10 biggest industrial leases of 2024:
1. UFP Industries’ renews at Prologis industrial park
A lumber supplier kept its north Miami-Dade County industrial site.
Grand Rapids, Michigan-based UFP Industries, which provides lumber for construction, retail and packaging uses, renewed its 280,700-square-foot lease at 11400 Northwest 32nd Avenue within the Prologis Gratigny Industrial Park. The warehouse complex is in an unincorporated area of the county.
San Francisco-based Prologis, led by CEO Hamid Moghadam, is an industrial developer and investor.
2. Coaster Fine Furniture stays in Miramar
A furniture importer and distributor kept its Miramar warehouse.
Los Angeles-based Coaster Fine Furniture renewed its 250,400-square-foot lease at 10700 Enterprise Way within the Miramar Park of Commerce.
The 5 million-square-foot industrial and office park was developed by Sunbeam Properties & Development, the Ansin family’s real estate firm. The Ansins, who own Miami-based Fox News affiliate WSVN-Channel 7, still own the Miramar Park of Commerce.
3. Miami International Boat Show co-producer leases in Hollywood
The London-based company that co-produces the Miami International Boat Show opened an industrial outpost in Hollywood.
Informa’s Yachting Promotions division leased the entire 200,000-square-foot Seagis @ Port Everglades facility at 1700 Eller Drive. Informa, which provides market intelligence, also organizes the Fort Lauderdale International Boat Show and the Palm Beach International Boat Show.
Conshohocken, Pennsylvania-based Seagis Property Group completed development of the facility this year.
4. Starboard Holdings keeps its Flagler Global Logistics Park outpost
A provider of retail on cruises and resorts kept its outpost at the Flagler Station Business Park in Miami-Dade County.
Starboard Holdings, which also is known as Starboard Group, renewed its lease for nearly 185,000 square feet at building 34 at 9290 Northwest 112th Avenue in an unincorporated area of the county. The deal represents a contraction from the tenant’s previous space, according to data provided by Colliers.
It is unclear how much space Starboard gave back. The company didn’t immediately return a request for comment.
Coral Gables-based Flagler Global Logistics, a subsidiary of Florida East Coast Industries, developed Flagler Station. Building 34 is now owned by an entity in the care of Boston-based property manager Seyon Management.
5. MD Turbines leases at Countyline Corporate Park
An aviation industry maintenance, repair and disassembly services provider leased at Countyline Corporate Park in Hialeah.
MD Turbines, which also provides logistics and storage services to the aviation industry, leased 178,200 square feet at building 39 at 3761 West 112 Place.
Bellevue, Washington-based Terreno Realty, which owns at least 121 acres of developable land at Countyline Corporate Park, developed the building.
The tenant moved in after the building was completed in the third quarter, according to a source familiar with the matter. The space is in addition to MD Turbines’ lease at Countyline Corporate Park’s building 28 at 4241 West 108 Street, also owned by Terreno.
6. Sentury Tire USA also leases at Countyline Corporate Park
A vehicle tire manufacturer also leased at Countyline Corporate Park.
Sentury Tire USA moved into a 161,800-square-foot warehouse at building 31 at 11210 West 43rd Avenue in Hialeah.
Terreno Realty completed development of the building this year.
7. Winco keeps its Flagler Station Business Park warehouse
A food service supplies distributor extended its lease at Flagler Station Business Park in Miami-Dade County.
Lodi, New Jersey-based Winco leased 146,000 square feet at building 22 at 10800 Northwest 103rd Street in an unincorporated area of the county.
Records show Boston-based AEW Capital Management owns the property.
8. PepsiCo expands its Coral Springs distribution center
PepsiCo expanded its space in Coral Springs.
The Purchase, New York-based food, snacks and beverage company leased an additional 145,000 square feet at 4000 Northwest 126th Avenue. PepsiCo now leases 215,000 square feet of warehouse and distribution space at the facility, according to media reports.
Radnor, Pennsylvania-based EQT Exeter completed the two-building complex at 4000 and 4003 Northwest 126th Avenue in 2018, records show. EQT sold the property in 2021 as part of a nationwide $6.8 billion industrial portfolio sale to a group led by an Asian sovereign wealth fund, The Wall Street Journal reported at the time.
9. HVAC/R International leases in Medley
An air conditioning products distributor leased in Medley.
HVAC/R International took 143,600 square feet at 7290 Northwest 77th Court at the Palmetto Logistics Center. The tenant is the master distributor for AC products manufacturer Dunham Bush USA, according to HVAC/R’s website.
Records show an entity managed by Baran Gokce owns the building.
10. Caribbean Trading Enterprises opens outpost at Prologis Gratigny Industrial Park
Caribbean Trading Enterprises leased 142,800 square feet at 12300 Northwest 32nd Avenue at Prologis Gratigny Industrial Park. The property is in unincorporated Miami-Dade County.
Prologis owns the building, according to records.
Source: The Real Deal’s analysis of data provided by Colliers and CBRE.