EastGroup Plans 850 KSF Industrial Park in Florida
- Jun 16, 2017
EastGroup Properties Inc. just announced its response to the persistent cry for industrial accommodations in metropolitan Miami. The REIT will develop Gateway Commerce Park, an 850,000-square-foot distribution campus in a highly coveted area in Miami-Dade County.
Gateway will be erected on what was once the practice track for Calder Race Course in Miami Gardens. EastGroup completed the $26.5 million acquisition of the land, situated at the N.W. 27th exit of the Florida Turnpike, from Churchill Downs Inc. in November 2016. The property offers three major advantages: location, location, location.
“The growth of e-commerce and population density, particularly in urban cores, has made this site very unique for the development of Gateway Commerce Park,” Audley Bosch, senior vice president with commercial real estate services firm JLL, told Commercial Property Executive. JLL is overseeing leasing for the Class A park, which was conceived to appeal to serious logistics, distribution and supply chain occupiers. “The 61-acre site is situated in the eastern corridor of Miami-Dade, close to the highly-dense urban cores of Miami-Dade and Broward,” he continued. “While everyone points to location in real estate, what’s so unique about this site is its location on the eastern side of the county in comparison to other industrial developments that are underway today.”
EastGroup expects to commence construction of Gateway in the third quarter. In addition to premier speculative buildings, the park will offer build-to-suit opportunities. It’s a timely project, statistics indicate. The metro Miami industrial vacancy rate has been on a steady decline for nine consecutive years, dropping to just 3.8 percent in the first quarter of 2017, according to a report by JLL. And the forecast for the market remains sunny, with nary a cloud in sight. “As Miami’s economy continues to expand, we expect to see more big-name companies capitalize on growth opportunities and sign bigger deals,” JLL notes in the report. “With more than five years of rent growth and six consecutive years of positive net absorption, the outlook for industrial remains strong.”
NOT YOUR TYPICAL INDUSTRIAL PARK
Gateway’s first spec building is scheduled to come online in the second quarter of 2018, marking EastGroup’s debut in Miami-Dade. Ultimately, tenants at the park will benefit from more than just state-of-the-art industrial digs thanks to EastGroup’s plan to sell a seven-acre outparcel at the campus. The land, which is being marketed by commercial real estate services firm Avison Young, is approved as an Entertainment Overlay zone, allowing for no fewer than 45 potential uses—hotel, retail, office and, of course, entertainment, included.
“Our tactical vision when purchasing the 61 acres was to carve out the appropriate square footage to provide a mix of complementary amenities enhancing Gateway Commerce Park’s overall desirability as well as serving as a commerce destination for local communities,” Chris Segrest, vice president with EastGroup, said in prepared remarks.
Images courtesy of EastGroup Properties