"Pretty much everywhere in northern Palm Beach County is experiencing activity and growth because of the housing" growth, Smith, vice president with the Palm Beach County office of CB Richard Ellis Inc., tells GlobeSt.com.
Premier Airport Center, Premier Gateway Commerce Center and Premier Gateway Center are three industrial parks affected by the housing growth. These parks are in West Palm Beach and a neighbor to the south, Boynton Beach.
"Both of them are very active," says Smith. "The main reason is we're running out of product and land, vacancy is tight, and the land prices are so high… The high land prices are keeping developers from building new product, so the product is leasing fast and the demand is up.
"The majority of our tenants are directly related to the housing growth," he says. These include plumbing, window and door, and electrical companies--businesses related to homebuilding, he says.
New leasing deals at area parks include Choice Restaurant Equipment signing on for 19,217 sf of warehouse/distribution space with Premier Airport Center. The property is located at 1701 Old Okeechobee Road in West Palm Beach, and Choice negotiated space in Building 1 of the park. The multi-tenant building, completed about four months ago, is 100% leased.
This five-year lease has an approximate value of $650,000. The company is relocating to this space from Lake Worth, FL, according to Smith, who represented Premier Airport Center in the transaction.
Also, Lennox Industries Inc., an air-conditioning distributor, inked a new lease for 17,965 sf of warehouse/distribution space with Premier Airport Center. The space is in Building 1, next to Choice, and represents a new location for the company.
Smith represented Premier Airport Center in this transaction as well. The lease is for five years and is valued at approximately $600,000.
In addition, Next Plumbing Supply Inc., which distributes plumbing supplies, leased 14,579 sf of warehouse/distribution space with Premier Airport Center. This property is located at 1801 Old Okeechobee Road in West Palm Beach, in Building 2 of the park.
The building, under construction, is 75% leased and is expected to be completed in November. The five-year lease is valued at approximately $500,000.
It's a new venture, and the company also is leasing some other locations outside the area, says Smith, who represented Premier Airport Center in the transaction.
Meanwhile, ITT Industries Inc., which assembles water filters, inked a new deal for 44,903 sf of industrial space with Premier Gateway Center in Boynton Beach. The 10-year lease is valued at almost $3 million.
Smith represented Premier Gateway Center in the transaction. Christopher Metzger, senior director of industrial brokerage for Cushman & Wakefield in Fort Lauderdale, represented ITT.
Finally, Lawson Industries Inc., a window and door distributor, leased 30,489 sf of warehouse/distribution space from Premier Gateway at Quantum LLP. The property is located at Premier Gateway Commerce Center 7 in Boynton Beach.
Smith represented Premier Gateway at Quantum LLP in the transaction. This five-year lease is worth about $950,000. The company is relocating from within Boynton Beach.
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