PREMIER PALM BEACH GARDENS FLEX BUILDING...JASON WEPRIN ASSOCIATE +1 561 558 7709...
Transcript of PREMIER PALM BEACH GARDENS FLEX BUILDING...JASON WEPRIN ASSOCIATE +1 561 558 7709...
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COLLIERS INTERNATIONAL SOUTH FLORIDA, LLC901 NORTHPOINT PARKWAY, SUITE 109WEST PALM BEACH, FL 33407www.colliers.com/southflorida
PREPARED BY:
MICHAEL FALKEXECUTIVE DIRECTOR+1 561 662 [email protected]
OFFERING MEMORANDUM
SCOTT WEPRINSENIOR DIRECTOR+1 561 239 [email protected]
JASON WEPRINASSOCIATE+1 561 558 [email protected]
PREMIER PALM BEACH GARDENS FLEX BUILDING10455 RIVERSIDE DRIVE, PALM BEACH GARDENS, FLFOR SALE OR LEASE
COLLIERS INTERNATIONAL PAGE 2
CONFIDENTIALITY AND DISCLAIMER STATEMENTIntended solely for your own limited use to determine whether you wish to express any further interest in the Property. This confidential memorandum contains brief, selected information pertaining to the business and affairs of the Property and has been prepared by Colliers International South Florida, LLC, primarily from information supplied by the Owner. Although this confidential memorandum has been reviewed by representatives of the Owner, it does not propose to be all-inclusive, nor does it contain all the information which a prospective purchaser may require or desire. Neither the Owner, nor any of its officers, directors, employees or agents, nor Colliers International South Florida, LLC, makes any representation or warranty, expressed or implied, as to the accuracy or completeness of this confidential memorandum or any of its contents, and no legal liability is assumed or is to be implied by any of the aforementioned with respect thereto. Prospective offers are advised to verify the information independently. The Owner reserves the right to change the price or any information in this Memorandum, or to withdraw the Property from the market at any time, without notice. This confidential memorandum shall not be deemed an indication of the state of affairs of the Property or the Owner, nor shall it constitute an indication that there has been no change in the business or affairs of the Property or the Owner since the date of preparation of this memorandum. By your receipt of this confidential memorandum, you agree that the information contained herein is of a confidential nature and you will not disclose this memorandum or any part of the contents to any other person, firm or entity without prior authorization from Colliers International South Florida, LLC.
OFFERING PROCEDUREOffers should be submitted in the form of a standard non-binding Letter of Intent, which can be found on the Colliers International Document Center, and must specify the following:
• Price (Call for pricing guidance)• Length of Inspection Period• Length of Closing Period• Amount of earnest money deposit at execution of a Purchase and Sale Contract• Amount of additional deposit upon expiration of Inspection Period
FOR FURTHER INFORMATION PLEASE CONTACT:
MICHAEL FALKEXECUTIVE DIRECTOR+1 561 662 [email protected]
ADDITIONAL CONTACTSTRIPP GREENE | DEBT & EQUITY FINANCESenior Associate | South FloridaDIR +1 954 652 4635MOB +1 407 927 [email protected]
CONFIDENTIALITY & DISCLAIMER
SCOTT WEPRINSENIOR DIRECTOR+1 561 239 [email protected]
JASON WEPRINASSOCIATE+1 561 558 [email protected]
COLLIERS INTERNATIONAL PAGE 3
> EXECUTIVE SUMMARY ................................................................... 4
> PROPERTY OVERVIEW
PROPERTY DETAIL ......................................................................... 6
FLOOR PLANS ................................................................................ 7
SITE PLAN ..................................................................................... 9
LOCATION OVERVIEW ................................................................... 10
PROPERTY IMAGES ....................................................................... 11
AERIAL IMAGES ............................................................................ 15
> MARKET OVERVIEW
AREA OVERVIEW ......................................................................... 20
DEMOGRAPHIC OVERVIEW .......................................................... 22
INDUSTRIAL MARKET REPORT .................................................... 23
TABLE OF CONTENTS
COLLIERS INTERNATIONAL PAGE 4
Colliers International is pleased to present for sale a unique investment or owner/user opportunity to acquire this ±40,000-SF Class A Flex building located in the desirable Palm Beach Gardens submarket. The building is located in the desirable Palm Beach Gardens submarket at 10455 Riverside Drive in Palm Beach Gardens, FL ("the Property").
The Property comprises ±17,000 SF of warehouse space with ±20,000 SF of office space on both the first and second floor, including ±3,000 SF of training and conference room space, on both the first and second floor. The Property is unmatched with limited like-kind assets in the immediate submarket and presents an excellent "Plug and Play" opportunity for the ideal user.
The asset is strategically positioned in Gardens Commerce Park in Northern Palm Beach County, surrounded by premium retail, hotel and recreational amenities with easy access to I-95, A1A and Florida’s Turnpike. The property also offers direct frontage on Interstate 95 with a premium branding opportunity.
Asking Price: $8,000,000
EXECUTIVE SUMMARY
> Plug and play building with furniture included in sale or lease> Delivered vacant on 4/2020> Over 50% office component> Executive wing with separate bathroom and kitchen > Training center with capacity for 50+ employees > Large conference room> 20' Clear ceiling heights> ±17,000 SF warehouse space with dock high and grade level doors> Hurricane-impact glass and back-up generator> I-95 Signage and easy accessibility> ±2,000 SF Dedicated server fiber area with backup generator
INVESTMENT HIGHLIGHTS
10455 RIVERSIDE DRIVE
PROPERTY O V E R V I E W
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COLLIERS INTERNATIONAL | OFFERING MEMORANDUM
PROPERTY DETAIL PROPERTY DETAILS
Legal Address 10455 Riverside DrivePalm Beach Gardens, FL 33410
Parcel Number 52-43-42-07-44-001-0030
Property Type Class A Flex
Floors 2
Year Built 2008
Gross Building Area ±40,000 SF
Land Size ±2.20 AC
Municipality City of Palm Beach Gardens
County Palm Beach
Zoning M1
Tenancy Multiple: Hear Canada, HeartUSA
Office SF ±23,000 SF
Warehouse SF ±17,000 SF
Parking 100 surface spaces (Ratio of 2.50/1,000 SF
Warehouse Detail
• 20' ceiling height• 1,600a 3p Heavy power• 2 dock high doors• 2 grade-level doors
Interstate 95
I-95 Signage Opportunity
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FLOOR PLAN - FIRST FLOOR
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FLOOR PLAN - SECOND FLOOR
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SITE PLAN
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LOCATION OVERVIEW
DISTANCE TO FLORIDA CITIES DISTANCE DRIVING TIME
Fort Lauderdale 45 miles 1 hour
Miami 72 miles 1 hour 15 minutes
Vero Beach 81 miles 1 hour 22 minutes
Orlando 178 miles 2 hours 40 minutes
Orlando
Miami
Ft. Lauderdale
West Palm Beach
Jacksonville
The Property is located in the desirable Palm Beach Gardens submarket minutes from Legacy Place, Downtown at the Gardens and the Gardens Mall, which offer some of the finest premium retail and restaurants in Northern Palm Beach County. Positioned just south of PGA Boulevard and north of Northlake Bouelvard, the property is surrounded by a healthy mix of commercial and residential development. The area is served by Florida's Turnpike and two Interstate 95 Interchanges on PGA Boulevard and Northlake Boulevard, with Amtrak, Tri-Rail and Brightline rail service to the south. The Property is accessible to Fort Lauderdale and Miami markets and their corresponding international airports, with Palm Beach International Airport approximately 20 minutes away.
LOCAL MARKET DRIVERS DISTANCE
Gardens Mall 1.7 miles
Downtown at the Gardens 1.5 miles
Florida Turnpike Interchange 3 miles
PGA National Resort & Spa 3.5 miles
West Palm Beach CBD 12.5 miles
Palm Beach International Airport 14 miles
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PROPERTY IMAGES | INTERIOR
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PROPERTY IMAGES | INTERIOR
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PROPERTY IMAGES | INTERIOR
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PROPERTY IMAGES | EXTERIOR
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AERIAL IMAGE | NORTH FACING
INTERSTATE 9
5
Burns Rd Riverside Dr
PGA Blvd
Alt A1A
Subject Property
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AERIAL IMAGE | NE FACING
I-95 Signage Opportunity
Riverside Dr
INTERSTATE 95
Burns Rd
Alt A1A
PGA Blvd
North Palm Beach
Subject Property
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AERIAL IMAGE | NW FACING
Alt A1A
Riverside Dr
North Palm Beach
Burns
Rd
I-95 Signage Opportunity
INTERSTATE 95
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AERIAL IMAGE | SOUTH FACING
INTERSTATE 95
BURNS RD
Subject Property
PALM BEACH GARDENS
MARKET O V E R V I E W
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The Gardens MallDowntown at the Gardens
Legacy Place
PGA Plaza
Prosperity Center
Harbour Financial Center
SOVEREL HARBOUR MARINA
Oaktree Plaza
Shoppes of Oakbrook
City Centre
Crystal Cove Commons
PGA BLVD
PROS
PERI
TY F
ARM
S RD
US H
WY
1
MARKET OVERVIEW
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Business-Friendly: Positioned in a business-friendly environment with Palm Beach State College, Keiser University and NOVA Campuses, premium hotels, retail, resorts, world-class golf clubs, and luxury living.
Accessibility to Market Drivers: The property has ease of access to market drivers, proximity to public transportation infrastructure, and various nearby amenities, which will attract investors and executives alike to this market.
A Business Magnet: Palm Beach Gardens offers a pro-business environment with low tax rates and incentives from the Business Development Board with a dedication to all business owners and residents.
Primed for Business: Multiple companies have established headquarters in the Palm Beach Gardens market, optimizing their visibility in a desirable submarket with a strong workforce.
Abundant Amenities: The property is minutes from fine restaurants on the PGA Corridor and shopping opportunities including the Gardens Mall, Legacy Place and Downtown at the Gardens.
Strategic Location: Palm Beach Gardens is strategically located near every major city in South Florida, only 13 miles north of West Palm Beach, 55 miles north of Fort Lauderdale, and 80 miles north of Miami with the Orlando submarket approximately 120 miles away.
AREA OVERVIEWWHY PGA STATION?
AREA OVERVIEWWHY PALM BEACH GARDENS?
COLLIERS INTERNATIONAL PAGE 21 COLLIERS INTERNATIONAL | OFFERING MEMORANDUM 4700 N CONGRESS AVENUE | PAGE 32
ABOUT WEST PALM BEACHWest Palm Beach is located in the northeastern end of Palm Beach County, the third most populous county in the state of Florida. Located 60 miles north of Miami and approximately 150 miles southeast of Orlando, West Palm Beach has many amenities to offer residents and visitors alike.
The city of West Palm Beach is home to sunny palm-lined streets, breathtaking waterfront views, quaint shopping districts, historic and scenic neighborhoods, and exciting year-round outdoor festivals. Downtown West Palm Beach is home to two retail and entertainment districts – CityPlace and the Clematis Street District. These vibrant pieces of the city are lined with fashionable martini bars, trendy nightclubs, elite boutiques, and fine dining establishments.
AREA OVERVIEW
A THRIVING BUSINESS CENTER
• A friendly business environment with over 350,000 residents, 15,657 firms, and a choice of more than 30 hotels are located within a 2-mile radius.
• Ranked by Forbes Magazine as the #1 city in Florida for business and careers.
• Its ease of access, excellent public transportation infrastructure, and various nearby amenities are attracting investors and executives alike to this surging market.
• The West Palm Beach CBD provides corporate headquarters to some well-known companies, including: Amazon Investment Group, CRL Media LLC, Branding Arc Inc, and Melchior Investments LLC.
• Other businesses including law firms, financial institutions and investment firms drawn to the CBD include Greenspoon Marder PA, RBC Wealth Management, Holland & Knight LLP, Greenberg Traurig, LLP and Morgan Stanley.
PALM BEACH COUNTY LARGEST EMPLOYERS
COMPANY EMPLOYEES PRODUCT/SERVICEPalm Beach County School District 21,656 Education
Palm Beach County Board of Commissioners 5,507 County Government
Tenet Healthcare Corp. 4,595 Healthcare
NextEra Energy, Inc. (HQ), Parent Company of FPL 4,005 Utilities
Hospital Corporation of Amercia-HCA 3,476 Healthcare
Veterans Health Administration 2,700 Healthcare
Florida Atlantic University 2,529 Higher Education
Boca Raton Regional Hospital 2,500 Healthcare
Jupiter Medical Center 2,195 Healthcare
Bethesda Health, Inc. 2,150 Healthcare
The Breakers 2,000 Hotel
Office Depot (HQ) 2,000 Office Supplies
South Florida Water Management District 1,391 Regional Government
City of West Palm Beach 1,372 City Government
Wells Fargo 1,367 Financial Services
Boca Ration Resort & Club 1,292 Hotel
City of Boca Raton 1,290 City Government
Palm Beach State College 1,172 Higher Education
G4S Secure Solutions, USA (HQ) 1,100 Security Services
PALM BEACH COUNTY ECONOMYThe Palm Beach County economy continues to shine. Job growth ticked below the national rate of growth over the last year but is expected overall to outperform the U.S. over the next few years. Palm Beach County has a high concentration of service jobs, especially in leisure and hospitality, along with a high concentration of white-collar jobs, where growth has been weaker as of late. Median household income is slightly higher than the national average in part due to the metro’s concentration of wealthy retirees, and its residents have significantly more spending power than those in neighboring Fort Lauderdale and Miami. This is driving strong demand for a variety of services.
Population growth across South Florida has exceeded the national average for years, but of the three major metros, Palm Beach’s population is growing the fastest. As would be expected, the leisure and hospitality sector is highly concentrated here and is projected to grow faster than the national average. Recent employment gains have come from the government, information, and general services sectors. The area’s largest employers include several aerospace engineering firms, parts and security manufacturing firms, and agriculture, specifically sugar production.
AREA OVERVIEW
DEMOGRAPHIC SNAPSHOT - 3 MILE RADIUS
2019 Population
82,104Total Households
36,932 Median Income
$67,224
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KEY FACTS
11,066Population
46.4
Median Age
2.1
AverageHousehold Size
$58,066Median Household
Income
EDUCATION
9%
No HighSchool
Diploma 23%High School
Graduate
29%Some College 39%
Bachelor's/Grad/ProfDegree
BUSINESS
1,018Total Businesses
11,036Total Employees
EMPLOYMENT
66%White Collar
16%Blue Collar
18%Services
2.8%
UnemploymentRate
INCOME
78,878Average Household
Income
$37,592Per Capita Income
$113,390Median Net Worth
Households By IncomeThe largest group: $50,000 - $74,999 (20.8%)
The smallest group: $150,000 - $199,999 (4.2%)
Indicator Value Difference<$15,000
$15,000 - $24,999
$25,000 - $34,999
$35,000 - $49,999
$50,000 - $74,999
6.7%
$75,000 - $99,999
7.9%
$100,000 - $149,999
9.4%
$150,000 - $199,999
17.2%
$200,000+
20.8%
-2.6%
15.5%
-1.3%
13.7%
+0.4%
4.2%
+4.5%
4.6%
+3.0%
+3.0%
-0.3%
-2.2%
-4.5%
Bars show deviation from
Palm Beach County
AREA OVERVIEW | 5 MILE RADIUSWHY WEST PALM BEACH?
• Favorable tax environment and economic incentives with excellent area demographics and workforce.
• Home to educational institutions that include Florida Atlantic University and Lynnn University.
• More than 220 upscale and elite specialty shops in various locations including Town Center Mall, Mizner Park and Boca Center.
• Premium restaurants to serve surrounding residents and visitors.
• Home to exceptional resorts including the Boca Raton Resort & Club, one of the nation's premier resort destinations.
• Connectivity - Boca Raton is in the heart of the South Florida market and offers easy access to West Palm Beach, Fort Lauderdale and Miami markets and international airports.
• Unmatched amenities that include public beaches, golf clubs and resorts, public parks, tennis centers and outdoor ampitheatre.
48.0 8%
3.2%
Average Household Size
MedianHousehold Income
Total Businesses Total EmployeesUnemployment
Rate
AverageHousehold Income
Population Median Age
BUSINESS
KEY FACTS
INCOME
EDUCATION
EMPLOYMENT
Households by Income:The largest group: $50,000 - $74,999 (18.6%) The smallest group: $150,000 - $199,999 (6.5%)
$67,224
61,5656,899
$99,441 $44,535 $173,914
22% High School
Graduate
29% Some
College 42% Bachelor's/Graduate
Degree
68%
14%
18%
No HighSchoolDiploma
White Collar
Blue Collar
Services
1 Mile
3 Miles
5 Miles
2.2
82,104
Per Capita Income
MedianNet Worth
COLLIERS INTERNATIONAL PAGE 23
MARKET OVERVIEW
PALM BEACH COUNTY | INDUSTRIAL Q2 2019
Executive SummaryIn the second quarter of 2019, two major leases executed at Duke’s Turnpike Crossing development indicated a strong demand for industrial space in Palm Beach County. One of these leases was to Amazon for approximately 100,000 SF and the second was to SIW Solutions for more than 161,000 SF. As a result, the two buildings at Turnpike Crossing project, one nearing completion and the other about to commence construction, are now fully leased. This strong pre-leasing activity indicates that larger users are interested in newer product with high ceilings, ample loading and adequate parking. As large tenants continue to seek and execute leases for large blocks of space, vacancy rates can be expected to compress even tighter. The market for smaller deals under 15,000 SF is equally as active and in a tight market these tenants struggle to find viable space. Developers and landlords with availabilities in the 15,000 SF to 20,000 SF range (or smaller) will continue to experience strong demand from local users and tenants expanding from surrounding counties.
Building 3 (77,860 SF) at Liberty Airport Center in West Palm Beach delivered this quarter where Liberty Property is developing over half a million square feet of industrial space just off Southern Boulevard two miles west of the Palm Beach International Airport. So far, three warehouses totaling 296,020 SF are complete. Additionally, there is 225,000 SF currently under construction at the Palm Beach Park Commerce that will deliver this year. McCraney Property Company is about to begin construction on two of its four buildings totaling 300,000 SF at Airport Logistics Park. These buildings are expected to be complete in the second quarter of 2020. Additionally, a 120,000 SF distribution warehouse near the Port of Palm Beach is planned by Johnson Development Associates in Riviera Beach.
INDUSTRIAL MARKET
Summary Statistics Q2 2019 Industrial Market Palm Beach County, FL
Vacancy Rate 3.3%
Change From Q1 2019 (Percent) +0.1%
Absorption (Square Feet)
177
New Completions (Square Feet) 77,860
Under Construction (Square Feet) 573,903
Warehouse/Distribution Asking Rents
Current Quarter $8.67
Previous Quarter $8.60
Year Ago $8.60
Change from Q2 2018 +0.8%
Market Indicators
Relative to Prior Period Q2 2019 Q2 2019*
Vacancy
Net Absorption
Construction
Flex Rental Rate
Industrial Rental Rate Note: Construction is the change in Under Construction.*Projected.
Strong Pre-Leasing Activity Reflects Heightened Demand in the Palm Beach County Industrial Market
Executive SummaryIn the second quarter of 2019, two major leases executed at Duke’s Turnpike Crossing development indicated a strong demand for industrial space in Palm Beach County. One of these leases was to Amazon for approximately 100,000 square feet and the second was to SIW Solutions for more than 161,000 square feet. As a result, the two buildings at Turnpike Crossing project, one nearing completion and the other about to commence construction, are now fully leased. This strong pre-leasing activity indicates that larger users are interested in newer product with high ceilings, ample loading and adequate parking. As large tenants continue to seek and execute leases for large blocks of space, vacancy rates can be expected to compress even tighter. The market for smaller deals under 15,000 square feet is equally as active and in a tight market these tenants struggle to find viable space. Developers and landlords with availabilities in the 15,000 square foot to 20,000 square foot range (or smaller) will continue to experience strong demand from local users and tenants expanding from surrounding counties.
Building 3 (77,860 square feet) at Liberty Airport Center in West Palm Beach delivered this quarter where Liberty Property is developing over half a million square feet of industrial space just off Southern Boulevard two miles west of the Palm Beach International Airport. So far, three warehouses totaling 296,020 square feet are complete. Additionally, there is 225,000 square feet currently under construction at the Palm Beach Park Commerce that will deliver this year. McCraney Property Company is about to begin construction on two of its four buildings totaling 300,000 square feet at Airport Logistics Park. These buildings are expected to be complete in the second quarter of 2020. Additionally, a 120,000 square foot distribution warehouse near the Port of Palm Beach is planned by Johnson Development Associates in Riviera Beach.
Market Highlights > Pre-leasing activity adds to an already tight industrial market in Palm Beach County with major leases signed by Amazon and SIW Solutions.
> Sales activity in Palm Beach County this quarter was limited to smaller industrial assets with values less than $10 million.
Research & Forecast Report
PALM BEACH COUNTY | INDUSTRIALSecond Quarter 2019
MARKET HIGHLIGHTS
> Pre-leasing activity adds to an already tight industrial market in Palm Beach County with major leases signed by Amazon and SIW Solutions.
> Sales activity in Palm Beach County this quarter was limited to smaller industrial assets with values less than $10 million.
Strong Pre-Leasing Activity Reflects Heightened Demand in the Palm Beach County Industrial Market
COLLIERS INTERNATIONAL PAGE 24
INDUSTRIAL COWORKINGWith land constraints still posing a threat to industrial developers, industrial coworking could be an effective solution. Industrial coworking brings the flexibility and collaboration of office coworking but instead of providing a desk and Wi-Fi, industrial coworking provides tools, equipment, and workspace along with a network of on demand warehousing, including management support. Increasing rents and new construction delivering across South Florida makes on demand warehousing an attractive option, operating on a pay-peruse basis allows prospective tenants a way around land constraints and rising rental rates. Among the top operators in industrial coworking are: Flexe, having nearly 10 locations in South Florida, Flowspace enabling one to two-day deliveries with approximately 30 locations in South Florida, and Stord operating a 51.6 million SF network.
CREATIVE INDUSTRIALLargely due to the tight labor market, employers have been forced to make changes to attract employees. The most visible change made is to the workplace itself, it is common now to see highly amenitized buildings. A highly amenitized industrial building is coming to be known as creative industrial, combining a creative office space with industrial space and often consolidating operations into one building. The office space has high-end finishes in conference rooms, kitchens and bathrooms, transom glass for natural light, sky lights, 60’ speedways, 36’ clear and larger truck courts. These nicer amenities increase demand for the building and contribute to the increased industrial rents in South Florida.
BUILDING ON SPECWith a 96.7 percent leased industrial market and successful leasing activities for recently completed buildings, demand for industrial space remains strong, turning South Florida into a hub for the development of industrial spec buildings. Of the 2.5 million SF of industrial completions in the tri-county region in 2019, 2.3 million SF were spec buildings [and are currently 46.3% leased]. The under construction industrial market mirrors that with 4.2 million SF, of the 4.9 million SF under construction, being spec buildings. The highly leased South Florida industrial market makes building on spec less risky as the demand for it persists. The evolving consumer base creates continual growth in the industrial sector and will incite swift leasing of spec buildings.
INDUSTRIAL MARKET
Stable and Compressed Vacancy RatesNominal changes to Palm Beach county’s industrial vacancy rate in the second quarter of 2019, despite new deliveries.
Unemployment rates decreased at the local, state, and national level. The Miami-Fort Lauderdale-West Palm Beach MSA unemployment rate posted 3.1 percent* in May 2019, representing an 11 percent decrease from May 2018. The state of Florida rate posted a 3.4 percent* unemployment for May 2019, well below the national average of 3.6 percent.*preliminary
2.0%
2.5%
3.0%
3.5%
4.0%
-200
-100
0
100
200
300
400
500
2018 Q2 2018 Q3 2018 Q4 2019 Q1 2019 Q2
Vaca
ncy R
ate
Squa
re Fe
et (T
hous
ands
)
Net Absorption Completions Vacancy
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
May
-12
Aug-
12
Nov
-12
Feb-
13
May
-13
Aug-
13
Nov
-13
Feb-
14
May
-14
Aug-
14
Nov
-14
Feb-
15
May
-15
Aug-
15
Nov
-15
Feb-
16
May
-16
Aug-
16
Nov
-16
Feb-
17
May
-17
Aug-
17
Nov
-17
Feb-
18
May
-18
Aug-
18
Nov
-18
Feb-
19
May
-19
Une
mpl
oym
ent R
ate
Florida Miami-Ft Lauderdale-West Palm Beach MSA USA
2 South Florida Research & Forecast Report | Q2 2019 | industrial | Colliers International
Completions, Absorption and Vacancy Rates
Source: Colliers International, CoStar
Unemployment Trends
Source: US Bureau of Labor Statistics
South Florida Industrial Market TrendsIndustrial Coworking
With land constraints still posing a threat to industrial developers, industrial coworking could be an effective solution. Industrial coworking brings the flexibility and collaboration of office coworking but instead of providing a desk and Wi-Fi, industrial coworking provides tools, equipment, and workspace along with a network of on demand warehousing, including management support. Increasing rents and new construction delivering across South Florida makes on demand warehousing an attractive option, operating on a pay-per-use basis allows prospective tenants a way around land constraints and rising rental rates. Among the top operators in industrial coworking are: Flexe, having nearly 10 locations in South Florida, Flowspace enabling one to two-day deliveries with approximately 30 locations in South Florida, and Stord operating a 51.6 million square foot network.
Creative Industrial
Largely due to the tight labor market, employers have been forced to make changes to attract employees. The most visible change made is to the workplace itself, it is common now to see highly amenitized buildings. A highly amenitized industrial building is coming to be known as creative industrial, combining a creative office space with industrial space and often consolidating operations into one building. The office space has high-end finishes in conference rooms, kitchens and bathrooms, transom glass for natural light, sky lights, 60’ speedways, 36’ clear and larger truck courts. These nicer amenities increase demand for the building and contribute to the increased industrial rents in South Florida.
Building on SpecWith a 96.7 percent leased industrial market and successful leasing activities for recently completed buildings, demand for industrial space remains strong, turning South Florida into a hub for the development of industrial spec buildings. Of the 2.5 million square feet of industrial completions in the tri-county region in 2019, 2.3 million square feet were spec buildings [and are currently 46.3 percent leased]. The under construction industrial market mirrors that with 4.2 million square feet, of the 4.9 million square feet under construction, being spec buildings. The highly leased South Florida industrial market makes building on spec less risky as the demand for it persists. The evolving consumer base creates continual growth in the industrial sector and will incite swift leasing of spec buildings.
COLLIERS INTERNATIONAL PAGE 25
INDUSTRIAL MARKET
4 South Florida Research & Forecast Report | Q2 2019 | industrial | Colliers International
SUBMARKET MAPINDUSTRIAL
CENTRAL PALM BEACH
PALM BEACH COUNTY (OUTLYING)
NORTH PALM
BEACH
SOUTH PALM
BEACH
3 South Florida Research & Forecast Report | Q2 2019 | industrial | Colliers International
SUBMARKET & PROPERTY TYPE
# OF BUILDINGS
INVENTORY SFDIRECT
VACANCY %
TOTAL VACANCY %
NET ABSORPTION CURRENT QTR.
SF
NEW COMPLETIONS
SF
UNDER CONSTRUCTION
SF
AVG. DIRECT ASKING RATE NNN
South Palm Beach
Warehouse Distribution (WD) 466 9,785,535 5.9% 6.2% -223,469 0 0 $9.72
Manufacturing (MF) 51 1,272,554 2.5% 2.5% -8,686 0 0 -
Flex (F) 195 5,257,130 4.4% 4.5% -2,736 0 0 $14.68
North Palm Beach
Warehouse Distribution (WD) 71 1,451,819 1.8% 1.8% -1,747 0 0 $12.43
Manufacturing (MF) 4 128,432 0.0% 0.0% 0 0 0 -
Flex (F) 37 1,316,433 6.1% 6.1% -19,383 0 18,650 $14.08
Central Palm Beach
Warehouse Distribution (WD) 615 20,118,242 3.2% 3.3% -23,845 77,860 335,253 $8.53
Manufacturing (MF) 85 3,712,975 0.1% 1.2% 1,200 0 0 $7.47
Flex (F) 145 3,042,401 2.2% 2.2% 6,831 0 0 $12.10
Palm Beach County (Outliying)
Warehouse Distribution (WD) 113 4,546,744 1.6% 1.6% 18,689 0 220,000 $7.45
Manufacturing (MF) 18 1,518,510 7.0% 7.0% 0 0 0 $9.86
Flex (F) 50 1,424,908 2.7% 2.7% -12,450 0 0 $13.83
YEAR & QUARTER
# OFBUILDINGS
TOTAL INVENTORY
SFDIRECT
VAC.TOTAL VAC.
NET ABSORP. CURRENT QTR. SF
NET ABSORP. YTD SF
NEW COMPLETIONS
SF
UNDER CONSTRUC.
SF
WHSE. AVG. GROSS DIRECT ASKING RATE
MFG. AVG. GROSS DIRECT ASKING RATE
FLEX AVG. GROSS DIRECT ASKING RATE
2019 Q2 1,554 51,945,969 3.1% 3.3% (117) (35,749) 77,860 573,903 $8.67 $8.02 $14.15
2019 Q1 1,553 51,930,969 3.1% 3.2% (135,632) (135,632) 56,160 280,000 $8.60 $9.41 $14.22
2018 Q4 1,553 51,912,663 2.8% 2.9% (77,073) 316,216 0 336,160 $8.55 $9.42 $13.76
2018 Q3 1,553 51,912,663 2.6% 2.8% 189,086 393,289 156,581 116,160 $8.88 $8.64 $14.03
2018 Q2 1,552 51,777,897 2.7% 2.9% 255,456 204,203 224,000 227,741 $8.60 $8.62 $13.34
2018 Q1 1,551 51,553,897 2.9% 3.0% (51,253) (51,253) 22,000 380,581 $8.70 $8.57 $12.79
2017 Q4 1,550 51,531,897 2.8% 2.8% 255,871 1,138,815 298,392 256,328 $8.67 $8.31 $11.86
2017 Q3 1,548 51,233,505 2.8% 2.8% 456,939 882,944 0 554,720 $8.51 $8.07 $12.22
2017 Q2 1,551 51,352,301 3.9% 3.9% 326,760 426,005 377,944 320,392 $8.67 $7.95 $11.31
2017 Q1 1,546 50,992,037 3.8% 3.8% 99,245 99,245 115,545 531,944 $8.48 $7.66 $11.78
2016 Q4 1,544 50,876,492 3.8% 3.8% 493,512 1,635,498 329,760 515,489 $8.25 $7.74 $12.25
2016 Q3 1,541 50,546,732 4.2% 4.2% 335,982 1,141,986 140,400 845,249 $8.19 $7.75 $12.35
2016 Q2 1,540 50,406,332 4.6% 4.6% 278,500 806,004 144,551 860,995 $8.07 $7.84 $12.26
SUBMARKET BREAKDOWN
PALM BEACH COUNTY OVERALL MARKET
PROPERTY ADDRESS PROPERTY TYPE BUYER NAME SIZE (SF) SALES PRICE SUBMARKET
15300 Park of Commerce Blvd Manufacturing Ghitis Property Co. 32,500 $4,100,000 Jupiter/North Palm Beach
4800 Riverside Drive Office John C. Bills Property Inc. 40,118 $5,800,000 Palm Beach Gardens/North Palm Beach
3001 PGA Blvd Office Owens Retail Network, LLC 67,000 $24,000,000 Palm Beach Gardens/North Palm Beach
505 Belvedere Rd Warehouse E Hunter Beebe 88,696 $10,000,000 West Palm Beach
851 Jupiter Park Drive Manufacturing Jupiter Warehouse Holdings 72,052 $9,200,000 North Palm Beach
Accelerating success.
CONTACT DETAILS
MICHAEL FALKExecutive Director+1 561 662 [email protected]
SCOTT WEPRINSenior Director+1 561 239 [email protected]
JASON WEPRINAssociate+1 561 558 [email protected]
Colliers International South Florida, LLC901 Northpoint Parkway, Suite 109West Palm Beach, FL 33407+1 561 478 6400
Commercial Real Estate Services
www.colliers.com