MIAMI-Flagler is reporting that it closed more than 1.3 million square feet of leases against 75 transactions in the first quarter of 2011. The firm also closed 650,262 square feet of property sales in the period. Coming on the heels of a strong performance from the fourth quarter of 2010, the nearly 2 million square feet of deal flow marks Flagler’s strongest first quarter showing in three years.
Wayne Schuchts, a senior vice president at Flagler, tells GlobeSt.com there are several reasons for the flood. Most of Flagler’s first quarter activity comes from a rebounding Miami industrial market. Flagler reported 1.07 million square feet of industrial leases for the period.
Beyond the overall industrial market recovery, Schuchts points to corporations with cash reserves and strong stocks as a factor in the deals. In some cases, the timing of the lease expirations worked to Flagler’s advantage. But Schuchts admits he doesn’t expect a repeat in the second quarter.
“We did five deals over 100,000 feet in the first quarter,” Schuchts says. “Two to three deals of that size in a quarter is probably more typical. Most brokers and owners expect the second quarter to be pretty flat.”
In terms of actual deal flow, Ryder Integrated Logistics renewed its lease for 206,800 square feet of industrial space at Beacon Lakes in Miami. Betty Dain Creations leased 125,482 square feet of industrial space at Flagler Station Bldg. 29 in Medley. And JCA Ventures renewed its lease for 112,730 square feet of industrial space at Flagler Station DFLW1 in Medley.
Other deals include Keystone Automotive Industries, which renewed its lease for 105,900 of industrial space at Flagler Station FLW3 in Medley. Paris Accessories leased 100,000 square feet of industrial space at Miami International Business Park in Doral. And Caterpillar Logistics Services leased 77,385 square feet of industrial space at Centergate in Hialeah. Tracfone Wireless, World Electric Supply, County Wide of Miami, and Verizon Access also did deals with Flagler in the first quarter.
“Industrial vacancy dropped as much as 2% in the recent term,” Schuchts says. “We are hoping it heads down toward the 8.5% or 9% range. That helps everybody when there’s that much net demand and positive absorption.”
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