The Bradford-McFadden branded partnership completed transactions totaling 110,763 sf valued at $4.2 million. Their biggest deal involved the $2.8 million sale of a 65,000-sf, 100%-leased warehouse at 8235 North Orange Blossom Trail to St. Augustine, FL-based Investment Property Exchange Services. Bradford-McFadden negotiated for the seller, Winn Development Inc. of Orlando. Steve Simmons of Simmons Investment Services represented the buyer. The sale of the 14-year-old property was part of a 1031-tax deferred exchange.
In a second transaction, the Advantis team represented the seller, Carolstan Properties Ltd. LLLP of Belleville, IL, in the $800,000 sale of a 15,030-sf, 100%-leased distribution building at 2500 Kunze Ave. in Orlando to Quinco Electrical Inc., a major electrical contractor here with $20 million in 2002 revenue. The building was construction in 1947 and renovated in 1998.
Bradford-McFadden traveled to Winter Haven, FL in Polk County, 60 miles south of Downtown Orlando, for their third transaction. They negotiated for Colorado Boxed Beef of Auburndale, FL in the $610,000 sale of that company's 30,733-sf industrial cooler/freezer building to Arctic Seafood of Atlanta. Arctic plans to use the vacant, 28-year-old building at 5582 Commercial Blvd. as a distribution location to service the Orlando and Tampa markets, the brokers tell GlobeSt.com. Ryan Lolakus of NAI Krauss Organization in Tampa negotiated for Arctic.
"At the end of the third quarter, the industrial market showing beginning signs of recovery from a leasing standpoint with a total market vacancy of 11.4%," Bradford tells GlobeSt.com. Year-to-date, seven lease deals over 100,000 sf have been completed in the metro market.
"Compared to 2002, the leasing activity for larger bulk deals in 2003 is about the same," Bradford says. "Where the market is lagging is in the mid-size deals of 20,000 sf to 50,000 sf. Ironically, rental rates have not dropped by much and landlords offering commission incentives to brokers have not been noticeably effective."
The reason for that failure is that "overall, there is a lack of new prospective tenants and more silent renewals taking place, as landlord's are approaching their tenants well in advance of their lease expirations," Bradford tells GlobeSt.com.
"The hot areas of the industrial market have been build-to-suits and building sales," the broker says. "There are nine build-to-suit transactions pending in the market right now and several are over 100,000 sf."
Bradford's partner, McFadden, agrees the overall industrial leasing market for 2003 "has been relatively flat, with the exception of a number of bigger deals that are currently touring the market." He anticipates 2004 "will improve and should show strong leasing activity by the second or third quarter."
Driving the market at that time will be "three potential lease transactions in excess of 100,000 sf currently in the market that are negotiating for sublease and/or older second-generation space," McFadden tells GlobeSt.com. "These are the buildings that are offering significant rental incentives."
In new products, the broker says "the only significant speculative construction" is a 203,125-sf, 30-ft clear cross-dock distribution building being developed by Opus South Corp. that is scheduled for completion in December of this year.
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