Tag Archive for: royal palm beach development

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South Florida Industrial Asking Rents Rise In The Fourth Quarter

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South Floridaā€™s industrial market ended the fourth quarter of last year with a seismic shift in ownership of 1.4 million square feet in Miami-Dade and Broward counties.

Boston-basedĀ Longpoint PartnersĀ acquired 25 industrial buildings in eight cities from Conshohocken, Pennsylvania-based Seagis. Longpointā€™sĀ $262 millionĀ portfolio purchase clocked in as the priciest industrial deal of 2023 ā€” a sign that South Florida warehouses remain a top target for institutional investors.

Industrial properties arguably represent a safe bet, given historically low single-digit vacancy rates and a continuing trend of rising asking rents, according to a recent CBRE report.

The tri-county region experienced a slight uptick in empty warehouse spaces in the fourth quarter, even though tenant demand remains high ā€” except in Broward. Still, industrial landlords kept increasing asking rents, the report shows.

Miami-Dade County

In the fourth quarter, the vacancy rate rose to 3.2 percent, compared to 2.6 percent during the same period of 2022, CBRE found. The average asking rent rose to $15.50 a square foot from $15.05 a square foot in the third quarter. It also increased by nearly 16 percent compared to $13.37 a square foot during the fourth quarter of 2022.

Miami-Dadeā€™s slight increase in vacancies was due to nearly 5.4 million square feet of new industrial space becoming available last year, the report states. About 80 percent has been leased to date.

San Francisco-based Prologis scored one of the biggest industrial lease signings of the fourth quarter. Packing and shipping firmĀ Ameriworld FulfillmentĀ signed a new 10-year lease valued at $25.2 million for 124,000 square feet in an industrial complex near Miami International Airport owned by Prologis.

Broward County

The vacancy rate in Broward remained relatively unchanged, hitting 3.5 percent in the fourth quarter, compared to 3.7 percent during the same period of 2022, CBRE found. The average asking rent jumped by 20 cents to $15.65 a square foot, compared to $15.45 a square foot during the third quarter of last year. It also increased by roughly 11 percent compared to $14.14 a square foot during the fourth quarter of 2022.

During the second half of last year, tenant demand was relatively weak in Broward, but the county has a limited supply of industrial space, which led to the average asking rent increasing, the report states.

In October,Ā All Glass ProductionĀ signed the second biggest industrial lease of 2023. The glass manufacturing company leased a nearly 250,000-square-foot warehouse at South Florida Logistics Center in Pembroke Pines. The property is owned by Denver-based Sagard Real Estate.

Palm Beach County

Palm Beach County experienced the largest increase in available space, with the vacancy rate hitting 4.2 percent in the fourth quarter, compared to 2.3 percent during the same period of 2022, the CBRE report shows.

The average asking rent rose by 25 cents to $15.75 a square foot, compared to $15.50 a square foot in the third quarter. It also increased by 7.5 percent compared to $14.65 a square foot during the fourth quarter of 2022.

Palm Beach Countyā€™s industrial sector experienced a gradual slowdown last year, with vacancies rising during four consecutive quarters, CBRE found.

Bush Brothers Provision Company, a meat packing and distribution company, signed a lease to move its headquarters into a 42,100-square-foot space at Royal Palm Logistics Center, a new industrial project in Royal Palm Beach developed by Orlando-based McCraney Property Company.

 

Source: The Real Deal

200-Acre Project Could Bring Homes, Schools, Hotel, Park And More To One Of Palm Beach County’s Busiest Intersections

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A Royal Palm BeachĀ project could get more than 1,000 new homes, schools, a theater and more.

Brian Tuttle, head ofĀ Tuttle Land Development, said it has taken him about five years to assemble 200 acres in what he called one of the busiest intersections in Palm Beach County. He estimated his project, called ā€œTuttle Royale,ā€ would have a market value of $650 million.

The plan, at Southern Boulevard and State Road 441, calls for 1,000 rental apartments, 100 single-family homes, aĀ K-12 Sports Leadership and Management (SLAM) charter schoolĀ for 1,500 students, a 200-student preschool, grocer, pharmacy with a drive-through, convenience store with an eight-pump gas station, a 150-room hotel and a 10-acre regional park.

Thereā€™s also 350,000 square feet of space for restaurants and entertainment offerings, including a 915-seat movie theater and a health club, according to city documents. The development would also include a street named Erica Boulevard, in honor of Tuttleā€™s daughter, who died unexpectedly at age 24 in 2016, he said.

The Royal Palm Beach Village Council tentatively signed off on the land use changes this month. There are hearings scheduled in September and October, according to the village clerk. More specifics will come once site plans are approved. Mayor Fred Pinto estimated it would take 10 years to build.

The land, sandwiched between Wellington and West Palm Beach, was mostly empty except for a dog rescue facility, which has since moved, as well as a handful of single-family homes, most of which have since sold, the mayor said. The land was annexed into Royal Palm Beach within the last few years.

Pinto said he hoped village residents could take advantage ā€œof the entertainment venuesā€ instead of having to drive to West Palm Beach.

As for the potential for increased traffic, Pinto said, ā€œAnything you do thereā€™s always going to be traffic.ā€ But he added, ā€œweā€™re not creating more traffic internally in the village. The traffic is confined to the people who live in the development or visitors for the entertainment.ā€

 

Source: SunSentinel