MIAMI-Miami International Commerce Center recently unveiled the largest new construction project in the Airport West market in years. Now, both class A industrial developments are 100% leased.
Owned by PS Business Parks, MICC’s new 75,000-square-foot property and the adjacent 60,000-square-foot building are fully occupied. PS Business Parks announced plans for the buildings in 2009, when the economy was down and many tenants were downsizing or going out of business.
“In our particular market we are blessed because we don’t have a lot of overbuilding,” Viola Sanchez, Southeast division vice president for PS Business Parks, tells GlobeSt.com. “The fact that we focus on small- to medium-sized tenant users is unique in the market, and it seems that’s where a lot of the growth has been.”
Sanchez explains that PS Business Parks took a risk building the properties in 2009, but was betting the market would respond to smaller, flexible spaces. Spaces range from 2,300 to 100,000 square feet immediately west of the Miami International Airport in Doral.
“Now, we have the opportunity to push rents,” Sanchez says. “Talking to my counterparts in this market, the inventory seems to be tightening up and there is a charge to start pushing rental rates. Rates are not nearly where they need to be or where we saw them at the peak, but we are seeing some growth and that is a positive sign.”
Sanchez reports that even larger tenants are beginning to ink deals, and more space is being absorbed across the market. She is even hearing talk of new industrial construction, though she doesn’t expect developers to break ground this year.
“If the larger spaces are absorbed, and everybody else is below 5% occupancy and rents are inching up, it may be the right time to build,” Sanchez says. “I would imagine probably the first part of next year you’ll see people taking the plunge and building industrial product.”
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