MIAMI-Doral Logistics Center is demonstrating the strength of the Airport West market. Wholesale Group just inked a new long-term lease for 88,680 square feet. The class A industrial space, which is located at 2900 NW 112th Ave. in Doral, was leased less than 60 days after it hit the market.
Transwestern managing directors Walter Byrd and Ben Eisenberg and senior vice president Thomas Kresse represented the building owner, Seagis Property Group. Frank Trelles, with WestVest, represented the tenant.
“This transaction is a true reflection of today’s strengthening market conditions,” Kresse tells GlobeSt.com. “The demand for industrial space continues to outpace other sectors. As vacancy rates drop, lease rates have begun to increase. This has led numerous institutional owners to seriously explore the option of constructing new supply.”
Doral Logistics Center is one building spanning 174,024 square feet and is currently broken up into two user spaces in Airport West. Wholesale Group’s will house its expanded office and logistics operations there. The lease includes a fenced in truck yard and 16,000 square feet of office space available for sales force.
Kresse notes that the Doral/Airport West is outperforming other areas, and while the overall market has picked up momentum, the number of 50,000-square-foot to 80,000-square-foot users has been particularly strong over the last three months. That, he says, is a sharp contrast to the last three years for this size user.
Miami-Dade County’s industrial market has weathered the economic downturn and is positioned to continue to tighten as leasing activity increases and vacancy rates decrease. The first quarter of 2011 closed with an overall vacancy rate of 7.5%, a 1.4 percentage point decrease compared to the recent high of 8.9% recorded in the first quarter of 2010, according to Cushman & Wakefield.
Overall vacancy in Airport West decreased by 1.7 percentage point to 6%. As a result of the declining vacancy rate, the direct asking net rental rate increased year-over-year by $0.16 to $5.46 per square foot, CushWake reports.
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