(Carl Cronan is editor of Real Estate Florida.)
MIAMI-The city's North Dade industrial submarket is finding new strength as a value alternative for companies seeking access to major transportation centers in South Florida. The local office of Cushman & Wakefield of Florida has completed three lease deals totaling more than 200,000 square feet of warehouse space with a combined value of at least $5.5 million.
Transactions include a 96,395-square-foot lease to Xpress Global Logistics at 5959 NW 37th Ave. in Hialeah, with Cushman & Wakefield representing landlord TA Associates Realty Inc., and a 79,507-square-foot lease at 650 NE 185th St. in Miami, with Cushman & Wakefield brokers representing the tenant in negotiations with landlord Best Freezer Holdings. Also, Red Bull Distribution leased 30,000 square feet at 5125 NW 165th St. in Hialeah, with the firm representing landlord Bristol Group Inc.
Although specific terms for each transaction weren't made available, asking rents within the North Dade submarket currently average around $5 per square foot, about half those in the more-active Airport West submarket. Brokers say North Dade remains an attractive option because of that type of cost savings.
"If a company is healthy, they're looking to save money any way they can," Brian Smith, senior director for industrial brokerage services with Cushman & Wakefield's Miami office, tells GlobeSt.com. "A tenant can drive a harder bargain in North Dade than they can in Airport West."
Smith, who worked with senior director Wayne Ramoski and associate director Audley Bosch on the Miami industrial team, notes that the North Dade submarket is well established yet has many buildings that are in sound enough condition to meet modern industrial needs. The buildings' distant proximity to Miami International Airport makes them more of a bargain, he says.
Bosch adds that the team has noticed shorter durations on newer lease transactions during the ongoing economic slowdown while credit markets remain frozen. "These deals are in line with what we're seeing nationwide—tenants taking a wait-and-see approach with shorter-term leases that meet their immediate needs," Bosch says.
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