CORAL SPRINGS, FL-Shoreline Aerospace, a distributor of aero systems for defense and commercial properties, has inked a 73,000-square-foot lease at ProLogis Park Sawgrass Building One. That makes the newly built, LEED Silver certified building 100% occupied.
Located near the Florida Turnpike, I-95 and I-75, ProLogis Park is visible from the Sawgrass Expressway and offers strategic distribution points. Shoreline is coming to ProLogis Park from a location at 6101 NW 31st Street in Pompano Beach. ProLogis declined to disclose the specific terms of the deal, noting only that is a mid-term lease.
“Our industry—industrial real estate—generally lags about six to nine months behind the overall economy,” Scott Alexander, first vice president and market officer for ProLogis in South Florida, tells GlobeSt.com. “As a result of slower economic growth, we are seeing a more moderate pace of recovery in the industrial real estate market. Even still, we continue to see signs of stabilization and improvement in the industrial real estate market and are encouraged by the recent activity in South Florida.”
ProLogis has 3.2 million square feet of space in South Florida. The company’s portfolio is 91% occupied. That’s par for the course in a region with among the lowest industrial vacancy rates in the nation. Broward County posted a 9.1 % vacancy rate in the third quarter of 2010, according to Cushman & Wakefield. The national average is 10.6%.
“We continue to be bullish on the South Florida,” Rick Etner, executive director of Cushman & Wakefield’s industrial brokerage in Miami/Ft. Lauderdale, tells GlobeSt.com. “We think the positive absorption will continue and vacancy rates will continue to decline through the fourth quarter. Next year we think rental rates will probably be back to normal as many of the newer buildings have been fully absorbed at very low rental rates.”
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