MIAMI-Manray Express has inked an industrial lease for an additional 70,000 square feet at AMB Pargo Center. The freight forwarding-logistics company leased 40,000 feet in Dec. 2009, bringing its total occupancy to 110,000 square feet.
Cushman & Wakefield Executive Director Brian Smith represented the building’s landlord, AMB Property Corporation. CB Richard Ellis First Vice President Michael Silver represented Manray Express in the three-year lease. Specific terms of the deal were not disclosed, but Silver tells GlobeSt.com he negotiated below-market rental rates with “several months” of free rent.
“Gratigny is a good market for logistics and freight forwarders,” Smith tells Globest.com. “The buildings in this submarket are larger, with good clear height and loading. There are many well-established companies in the park, including Florida Food Service, Winn-Dixie and Performance Food Group.”
Built in 1972, AMB Pargo Center is located 3380 N.W. 114th Street. The vacancy rate in the East Hialeah industrial market Gratigny calls home is 17%, according to CB Richard Ellis. That’s three times the normal industrial vacancy factor.
“There were plenty of buildings for Manray to choose from at even more attractive rental rates than what AMB finally agreed to,” Silver says. “However, even though there are less expensive buildings, the quality is not the same as the AMB building. AMB offers better ceiling height, multiple dock high loading doors, and other physical characteristics.”
Despite ongoing concessions and high vacancy rates in some submarkets, Miami-Dade’s industrial market is slowly recovering. In 2009, the market saw 5.9 million square feet of negative absorption. During the first half of 2010, that changed to 2.5 million square feet of positive absorption.
“We’ve seen a huge swing in the right direction,” Silver says. “And that not only includes suburban industrial space like Airport West and Medley, but also older areas. We are seeing deals pick up. Miami is still the gateway to Latin America.”
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