Transwestern Takes 230 KSF Management Contract from Seagis
- Feb 29, 2012
February 29, 2012
By Barbra Murray, Contributing Editor
The South Florida office of Transwestern has added 230,000 square feet of Miami-area industrial space to its responsibilities, courtesy of a new leasing assignment from Seagis Property Group L.P.
Transwestern will oversee leasing at 3450 NW 115th Ave., an 87,000-square-foot warehouse/distribution facility at in Doral. The property, located in the Airport West submarket, was fully leased by Carrier InterAmerica Corp. when Seagis purchased in July 2011. The building is now being marketed in its entirety.
The commercial real estate services firm will also work on filling up the tenant roster at a three-building complex along the Palmetto Expressway in Miami Gardens. Seagis has named the group of facilities, which encompass 140,000 square feet, 826 Industrial Park. The buildings were 90 percent leased at the time of their acquisition last November.
Miami’s industrial market is bolstered by the fact that the city, as noted in a report by the Commercial Industrial Association of South Florida, is a worldwide trading hub, with a significant portion of all U.S. imported perishables passing through the seaport and airport. “Trade is the primary economic driver in Miami,” Walter Byrd, managing director with Transwestern, told Commercial Property Executive. “We have a great international component that drives it.”
Neighbors to the south play a big role in trade activity, Brazil and Argentina in particular. “We came out of the recession very healthy because Brazil picked up and was on fire, and Chile has done well with commodity sales,” Byrd said. “Also, the middle class in those countries is growing. All of these factors provide for increased consumption so that really helped us come out of the recession in late 2009 and 2010 with our trade sector. So we have this great international component that drives the economy and if international sources slow, so often the domestic economy is doing better.”
And the proof really is in the pudding. Occupancy levels are on the upswing. The vacancy rate in the Airport West submarket was approximately 8-10 percent in 2011 and it is now on track to drop to 7-9 percent in 2012, as per the report. And in the North submarket, home to 826 Industrial, the vacancy rate is expected to decrease from 10-12 percent to 5-8 percent this year.
With occupancies steadily increasing, Miami is ready for new industrial property development. “Our market is healthy enough that we’re looking at a total of 1 million square feet of new construction by three national developers coming online in the Airport West market toward the end of the year,” Byrd said. “I think that speaks to the health of the market.” As for fear of overdevelopment, Miami’s limited developable land availability will keep construction in check.
Improving conditions or no, Transwestern has already proved to Seagis that it can get the job done. The firm recently orchestrated two lease transactions accounting for every single rentable square-foot at the 174,000-square-foot Doral Logistics Center. It was a feat that Transwestern accomplished in just 120 days.
*This story was updated on March 1, 2012, at 7:32 a.m. EST.