FT. LAUDERDALE, FL-The General Services Administration has inked a long-term lease at Pompano Commerce Center III. A yet-undisclosed government agency will take up residence of the entire 112,688-square-foot building in early 2011.
Elaine Moniri, Paul Marko and Tom O’Laughlin with CB Richard Ellis represented the General Services Administration in the transaction. Ed Mitchell, senior vice president, and Christopher Gallagher, vice president of Leasing in Duke Realty’s South Florida office, represented the ownership. Mitchell declined to disclose the financial terms of the deal.
Located at NW 33rd Street, Pompano Commerce Center III is just south of Sample Road between I-95 and the Florida Turnpike. Pompano Commerce Center III is one of two industrial buildings Duke Realty Corporation acquired in June 2010. The acquisition of the buildings, which were completed in early 2010, marks Duke’s first industrial properties in the South Florida market.
“When we purchased these buildings empty, we knew it was a risk in a market where people weren’t sure what was going to happen,” Mitchell tells GlobeSt.com. “Now, we’re seeing industrial picking up—and it’s not must moving desk chairs. The are real deals soaking up the space.”
Although big blocks of space remain in Pompano Beach, Harry Tangalakis, senior vice president of industrial properties at CB Richard Ellis, tells GlobeSt.com that the Pompano Beach industrial market has seen a big swing in the fourth quarter. The market is up 100,000 square feet for the year compared to a negative 275,000 square feet a year-ago. Tangalakis says the Pompano Center III deal is another big win for the market.
“Duke’s aggressive deal making helped them secure the government tenant,” Tangalakis says. “We’ve seen rental rates in South Florida drop about 25 percent to 30 percent over the past 18 months. The market is stabilizing now, but we’re still not seeing an uptick. Landlords are still giving large tenant improvement allowances and free rent.”
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