Dealmaker: Avison Young Closes $14M Warehouse Sale
(5200 NW 108th Avenue, Sunrise, Fla.)
Avison Young, Toronto, represented entertainment lighting company Chauvet Lighting in the $14.2 million sale of its 61,660-square-foot warehouse at 5200 NW 108th Avenue in Sunrise, Fla.
Avison Young Principal Tom Viscount represented Chauvet Lighting, which moved its headquarters to Davie, Fla.
Savills Associate Director Amanda Montanez and Executive Managing Director Tom Capocefalo represented buyer BF Aerospace, Davie, in the transaction.
“Warehouse buildings for sale are scarce throughout the tri-county South Florida market, and as such, we saw a ton of activity on the Sunrise listing followed by multiple offers,” Viscount said. “Interest rates steadily crept up during the sale listing, which presented a challenge as it affected pricing from an investor perspective. However, as rental rates continue to increase sharply, end users are more focused than ever on securing their own real estate for the long term to avoid dealing with further rate increases when renewing leases.”
Viscount noted many tenants see increases of 30 to 50% offered by landlords when they try to renew their existing lease, which was the case for BF Aerospace. “The resulting Sunrise building sale shows that demand for warehouse space remains high,” he said.
Avison Young reported industrial vacancy in Broward County is just 4.6%, while Miami-Dade and Palm Beach have even lower rates at 2.1% and 4.2%, respectively.
Florida’s Department of Economic Opportunity reported Broward, Miami-Dade and Palm Beach Counties continue to report unemployment rates below 2.6% compared to 3.5% nationally in March.