Friday, July 14, 2006

Ace Takes 54,000 SF in Airport Submarket

MIAMI-The Airport West-Dade industrial submarket is showing continued activity with Ace Hardware Corp.’s lease of 54,570 sf of space at the Beacon at 97th industrial park at 2000 NW 97th Ave. The lease was for a five-year term with an approximate net lease value of $2.5 million.

Michael Silver, CB Richard Ellis first vice president, represented Ace Hardware. Rafael Villamizar, of Newmark Knight Frank, represented the landlord, Faith Group Ltd. Silver tells GlobeSt.com that Ace Hardware will use the space for distribution of its products. Among reasons Ace chose the space was the high level of security at the park, which contains security cameras, protective fencing and other features. “This is a unique industrial space,” Silver says. “It has a higher level of security than other industrial parks in the area.”
Silver adds that the lease is indicative of the strong Airport West-Dade submarket, which is experiencing record low vacancies of 4.5% and record high average lease rates and sales prices. The submarket’s close proximity to both the Miami International Airport and the Port of Miami is among reasons companies elect to lease space. “Demand for space in this area combined with very low vacancies are characteristics of a landlord-driven environment. In many instances, occupancy-related expenses rank just behind labor as the second-highest fixed cost of running a business.”

Silver says that CBRE explored different scenarios for Ace Hardware before this space was chosen. “Through creative problem solving and transaction structuring, as well as sophisticated analytical models, we were able to find the optimal solution to Ace’s real estate requirements,” Silver says.

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