Leon Industrial, a Leon Capital Group subsidiary, has paid $11.5 million for a 120,000-square-foot industrial property in Rock Hill, S.C. Graham Capital sold the asset, while Avison Young brokered the transaction on its behalf and will also provide leasing services for the new owner.

Leon Industrial will implement a substantial improvement and renovation program at the Class B facility to attract tenants in need of small-bay space.

Measuring nearly 8 acres, the property includes one grade-level door, 10 dock-high doors and two exit ramps—with a third one under construction. Leon Industrial’s upcoming changes will include an upgraded exterior, lighting and parking space enhancements.

The 1974-built facility is at 2690 Commerce Drive, near Interstate 77. Charlotte is 23 miles from the property while Charlotte Douglas International Airport is within 25 miles.

This is the Texas-based buyer’s first acquisition in metro Charlotte, N.C. Leon seeks to further expand in the Southeast region and has recently established its Charlotte office, according to Charlotte Business Journal. The asset is fully vacant, the same source shows. It last changed hands for $10 million in 2022, CommercialEdge information shows.

Avison Young Principals Chris Loyd and Tom Tropeano, together with Vice President Ryan Kendall worked on behalf of the seller and will provide leasing services on behalf of the new owner.

Charlotte’s affordable industrial product

Industrial sales volume in Charlotte reached $1.5 billion in 2024, a recent CommercialEdge report shows. Assets changed hands at an average of $89 per square foot—the lowest among Southern markets. The national average stood at $129 per square foot. As of January, Charlotte’s 7.4 percent vacancy rate was one of the lowest in the region, surpassed only by Houston (6.5 percent) and Nashville, Tenn. (6.8 percent). The national figure stood at 8 percent.

A recent notable acquisition for the metro was Stonelake Capital’s $13.5 million deal. The company picked up a 123,140-square-foot, fully leased facility from Steins Fiber. Avison Young also brokered this deal on behalf of the buyer.

The post Leon Industrial Enters Charlotte With $12M Purchase appeared first on Commercial Property Executive.

Lovett Industrial has entered the Nashville market with the purchase of 10.4 acres in Hendersonville, Tenn. This swath of land will be the development site of Innovation Way Logistics Center, a 107,500-square-foot industrial property.

Powers Brown Architecture is the lead architect, while Kimley-Horn serves as the project’s civil engineer. Groundbreaking is scheduled for July 2025 and delivery is expected in June 2026.

Carrying the address 230 Innovation Way, the site is along New Shackle Island Road, offering direct access to Interstate 65 and U.S. Route 31E. Nashville International Airport is some 21 miles south.

Upon delivery, Innovation Way Logistics Center will be a rear-load building with a clear height of 32 feet and 215 feet in depth, having 29 dock-high doors and two drive-in doors. The property will also feature a 130-foot truck court and 120 parking spaces. Stream Realty Partners’ Griffin Farriss, Bradley Worthington and Andrew Fletcher will handle marketing and leasing.

READ ALSO: Manufacturing Surge Drives Industrial Expansion

The Nashville industrial real estate market had a decent 2024, according to fourth-quarter report from Colliers. The sales volume exceeded $1.4 billion, marking a 37 percent year-over-year increase.

Meanwhile, industrial space absorption totaled nearly 4.3 million square feet, and 4.0 million square feet were delivered, though that caused a slight bump in overall vacancy, to 4.1 percent. Almost 4 million square feet of industrial space were under construction as of the end of December, according to Colliers.

Lovett’s recent activity across the U.S.

Lovett has been active across a wide swath of the country in recent months:

•  In July, the company obtained entitlements for the development of a 298,000-square-foot facility in Chino, Calif., in the Inland Empire West submarket. Construction was scheduled to start in the fourth quarter of 2024.

•  The following month, Lovett delivered Broadway Logistics Center, a 201,329-square-foot Class A industrial building in Denver. Cushman & Wakefield was assigned to lease the spec project.

•  In October, Lovett broke ground on Highway 1 Commerce Center, a Class A spec last-mile logistics project in Philadelphia. The warehouse is slated for delivery by the third quarter of this year.

•  And in December, the developer broke ground on a 339,280-square-foot Class A logistics park in the Dallas-Fort Worth area. This project’s completion is also expected in the third quarter.

The post Lovett Industrial Enters Nashville Market appeared first on Commercial Property Executive.

Highwoods Properties Inc. has agreed to acquire Advance Auto Parts Tower, a 20-story, Class A+ office asset in Raleigh, N.C. The Triangle Business Journal identified the owner as Lionstone Investments, which developed the building in partnership with Kane Realty Corp., the property’s manager.

Highwoods plans to fund the acquisition of Advance Auto Parts Tower “on roughly a leverage-neutral basis” using proceeds from the recent $145 million sale of three office buildings in Tampa, Fla.

Subject to customary closing conditions, the deal is scheduled to close in the next 30 days. The buyer will be depositing $20 million in earnest money.

A Highwoods spokesperson declined to provide additional information on the pending transaction.

A Class A+ office building

The 346,000-square-foot, LEED Gold–certified tower came online in 2020. It features 11 floors of office space atop eight levels of parking, as well as roughly 8,200 square feet of retail. The property was fully leased at the end of 2024, with a weighted average lease term of 8.2 years.

Advance Auto Parts Tower is in the North Hills submarket, with a street address of 4200 Six Forks Road or 4000 Front at North Hills Street. The building is immediately adjacent to CAPTRUST Tower, a 300,000-square-foot Class A+ office property that is also owned by Highwoods.

At the end of 2024, the REIT’s portfolio encompassed 27.2 million square feet across several U.S. markets, while its development pipeline totaled 1.6 million square feet. One of the underway projects is a 642,000-square-foot mixed-use development in Uptown Dallas that centers on a 26-story office tower.

Still recovering

The Raleigh-Durham office market seems to be largely in recovery mode right now, based on a fourth-quarter report from Avison Young.

For example, the Six Forks Road submarket has 1 million square feet of total availability, against an inventory of 4.8 million square feet. This is at least better than the ratio for the two metros overall, which is 14 million square feet available, compared with an inventory of 59 million.

A remarkable twist is that Class C space is seeing the lowest availability of all product classes, at 5.4 percent.

Still, Avison Young reports, trophy properties remain in a class by themselves: “Trophy property rates continue to be significantly higher than Class A space. Despite availability for trophy properties being high, at 44.5 percent, asking rental rates are unlikely to come down in 2025 as owners are still hoping to make their office investments work.”

The post Highwoods to Acquire Raleigh Office Tower appeared first on Commercial Property Executive.

CTO Realty Growth has purchased Ashley Park, a 559,000-square-foot retail center in Newnan, Ga., for $79.8 million. The previous owner was Apollo Global Management, which had bought it for $89.8 million in 2015, according to CommercialEdge information.

CTO acquired Ashley Park below replacement costs, President & CEO John Albright said in prepared remarks. Having below-market rents, the asset provides an opportunity for strategic lease-up, he added.

Ashley Park occupies 60 acres at 354 Newnan Crossing Bypass, near the intersection of Interstate 85 and Georgia State Route 34, about 38 miles southwest of downtown Atlanta. The shopping center receives roughly 6 million visits per year.

READ ALSO: What Defines the Best CRE Investments Today?

Dick’s Sporting Goods, Best Buy, Barnes & Noble, Regal and Dillard’s anchor the property, which was 93 percent leased at the time of sale. Dick’s Sporting Goods is also CTO’s fifth-largest tenant.

Greater Atlanta’s retail vacancy rate stood at 3.7 percent in December, 50 basis points below the five-year average, according to a report by Colliers. A shortage of supply—only 544,000 square feet of product were underway in December—and several retail chain closures contributed to the tight index.

CTO’s growing retail footprint

With this purchase, CTO’s portfolio reached 5.2 million square feet, marking a 12 percent growth. Last year, the company expanded its footprint by 1.3 million square feet across six retail properties and one vacant parcel.

The most important deal closed in August, when the firm purchased three open-air shopping centers totaling roughly 1.2 million square feet for $137.5 million. The properties are in Charlotte, N.C., Tampa, Fla., and Orlando, Fla.

The post CTO Realty Grows Atlanta Footprint With $80M Buy appeared first on Commercial Property Executive.

As one of Atlanta’s most historically rich and culturally vibrant neighborhoods, West End is on the cusp of a transformative redevelopment. The reimagining of the 1973-built Mall West End into One West End is more than just a construction project—it’s a collaborative effort shaped by the voices of the local community.

Built on a 12-acre site, the old mall is set to be demolished and replaced by a mixed-use project following a $450 million investment from developers The Prusik Group and BRP Cos.

With a phased timeline leading up to a 2028 completion target for the first phase, this project aims to preserve the essence of West End while ushering in a new era of opportunity. Plans call for 125,000 square feet of retail, including a grocery store, a fitness center, diverse dining options and local boutiques, as well as approximately 900 mixed-income residences, including affordable and student housing, a 150-key hotel and 12,000 square feet of medical office space.

Commercial Property Executive reached out to BRP Cos. Managing Director Andy Cohen and The Prusik Group Principal Andrew Katz for details about their plans at One West End.

READ ASLO: What’s in Store for Retail in 2025?

This is a massive project with broad implications for the those living in the neighborhood. To what extent have community voices had an influence on this development so far?

Katz: We’ve been collaborating with the local community since day one. Over the past three and a half years, both public and private community members have played a crucial role in the planning process and have been deeply involved at every step. We’ve listened to the community to understand what services are most important to them and, more critically, to identify what’s missing. The invaluable insights and feedback from the community have guided us in shaping a plan that truly reflects their vision. 

How do you plan to honor the cultural heritage of Mall West End within the new development?

Cohen: The historic West End of Atlanta is a vibrant neighborhood rich in history and cultural diversity. We’re still in the early stages of our project, with the existing mall closing at the end of January. At this time, the digital time capsule is our first activation for the Mall West End to be honored in the community, but there are certainly many more activations to come down the pipeline in the years ahead. The next activation will be the groundbreaking ceremony. 

What will happen with the legacy tenants at the former mall? Are you supporting them in any way?

Katz: Many of these tenants have been integral to the community and the property’s history for decades, fostering relationships with generations of families who shop at their businesses. To ensure these long-standing businesses remain operational during the construction phase, several tenants will be relocated to a temporary onsite space at 850 Oak St.

This allows them to continue serving the community throughout the project’s duration. The tenants relocating include The Burning Sands, Dendera Cosmetics, True Hair and American Deli, while Planet Fitness will remain in its current location during the first phase. All of these businesses will also have the opportunity to move into permanent locations within One West End once it opens. 

How will the addition of grocery stores, fitness center and particularly a hotel impact the neighborhood and existing local businesses in the area?

Katz: Once complete, the property will feature approximately 125,000 square feet of retail space, featuring a diverse mix of tenants, including a grocery store, fitness facility, traditional in-line retail, food and beverage options and local boutiques. We also intend to include affordable commercial space designated for qualified small, local businesses. Additionally, the development includes a planned 150-key hotel.

The addition of key anchor businesses, such as grocery stores and fitness centers, is essential to our strategy of driving foot traffic and encouraging visitors to stay and shop, rather than just passing through. Currently, the neighborhood lacks hotels, so visitors are forced to stay downtown or in nearby areas. With the new hotel, visitors will now have the opportunity to stay in West End, supporting local businesses and directly contributing to the community’s economic growth. By introducing grocery and fitness-anchored retail alongside the hotel, we’re creating consistent touchpoints for both residents and visitors. This will ultimately boost foot traffic, foster a lively environment, and enhance the safety, prosperity and overall well-being of businesses and consumers alike. 

Tell us more about the residential component of the project. How many of the 900 residences will be dedicated to low-income residents?

Cohen: One West End will feature approximately 900 mixed-income residences, with at least 30 percent of the units available to those earning between 50 percent and 80 percent of the area median income. Situated just steps away from the Atlanta University Center Consortium—the oldest and largest consortium of historically Black colleges and universities in the world—the property will also provide housing options specifically designed for students. Eligibility for housing will be determined based on income qualifications.

Are there any sustainability or green building practices being incorporated into the design of One West End?

Cohen: Yes, while we are in the early stages of the design process, we can confirm that sustainable and green building practices will be integral to this project’s design and construction. Across our portfolio, many of our developments meet green criteria, including LEED certifications, Enterprise Green Communities and other relevant metrics based on building type and location.

Since our inception, we have prioritized developing properties that serve the people who live, work and use these buildings every day. This commitment involves successfully engaging in complex, large-scale public-private partnerships and designing sustainable structures that contribute to a cleaner environment. 

READ ALSO: Which Asset Classes Stole the Spotlight in 2024?

Can you provide an update on the project’s timeline and any potential challenges you foresee in meeting the 2028 completion target for the first phase?

Cohen: The redevelopment of the Mall West End will be a multi-year process, with the project team actively engaging residents, legacy business owners and other stakeholders throughout the process. Demolition will begin this year, with phase one completion slated for late 2028, early 2029. 

Katz: One of the main challenges we face is the size of the site, which we’re working to reconnect and revitalize. Right now, it’s an outdated mall with a large surface parking lot. Our plan involves reconstructing the street grid, upgrading infrastructure, utilities and more. This project isn’t just about building one structure, it’s about completely rebuilding and reintegrating the site into the surrounding neighborhood, creating a cohesive and connected community within its footprint. 

How do you envision One West End evolving over the next decade in relation to the West End community?

Katz: Looking ahead, we see One West End becoming a central hub for the West End community. Right now, the area lacks a true neighborhood center, but our project is designed to fill that gap by connecting AUC students, local residents, businesses and the health-care sector. With additional redevelopments planned for the Mall West End site and improved access to amenities such as grocery stores and fitness centers, One West End will evolve into a vibrant, bustling destination.

Cohen: This project will create a safer, more welcoming neighborhood while instilling a sense of pride in the community. By offering housing and local job opportunities, we aim to ensure that people can live, work and thrive right here. Ultimately, we’re building a more integrated, prosperous community, laying the foundation for a brighter and more prosperous future for the West End. 

The post Bridging Past and Future: Inside the One West End Redevelopment in Atlanta appeared first on Commercial Property Executive.

Lincoln Property Co., in joint venture with Walton Street Capital, has purchased a 226,392-square-foot distribution center for $43.8 million in Weston, Fla. The buyer assumed a $41.8 million loan and increased it to approximately $79 million through an amended and restated note, originated by Nuveen, TIAA’s subsidiary, Broward County public records show.

CBRE negotiated on behalf of the seller, Manova Partners, formerly known as GLL Real Estate Partners. The asset previously traded in 2018, when Becknell Industrial sold it for $30.4 million, CommercialEdge shows.

READ ALSO: Industrial Real Estate’s Future Depends on Adaptability

The deal represents the partnership’s third industrial transaction in the last four months, bringing the companies’ footprint in the South Florida area to more than 700,000 square feet. Lincoln Property Co. will be the property manager at the building, that was 54 percent leased at the time of its trade. Tenants include Mondelēz International and Vital Pharmaceuticals Inc., according to CommercialEdge.

The cross-dock industrial building is at 1600 N. Park Drive, close to interstates 75 and 595 that allows easy access through metro Miami. Fort Lauderdale-Hollywood International Airport is 17 miles from the property, while Miami International Airport is 27 miles away.

Built in 1994, the two-story building includes 25-foot clear heights, two drive-in doors, 46 dock-high doors and dock levelers and bumpers. Additionally, the 13-acre property features 226 vehicle parking spots and 11 trailer spots.

Vice Chairmen José Lobón, Trey Barry and Frank Fallon, Vice Presidents Royce Rose and George Fallon, together with Financial Analysts Gabriel Braun and Daniel Sarmiento with CBRE worked on behalf of the seller.

Big deals in the area

Recent notable industrial acquisitions in the Miami metro include the purchase of a 505,436-square-foot industrial campus in Opa-Locka, Fla. Link Logistics sold the property known as Ironwood Commerce Center to TA Realty in December.

One month earlier, Longpoint Partner picked up a 1.4 million-square-foot South Florida portfolio in a $331.3 million deal. Blackstone sold the industrial portfolio, that includes mostly infill, last-mile facilities.

The post Lincoln Property JV Buys Fort Lauderdale Facility for $44M appeared first on Commercial Property Executive.

SL Industrial Partners, a member of The Silverman Group, had purchased a 293,740-square-foot industrial asset in Greensboro, N.C. The property traded for $29.5 million from Tectonic, according to Guilford County public records.

SL Industrial Partners now expanded its industrial portfolio in North Carolina to more than 6 million square feet.

Cushman & Wakefield negotiated on behalf of the seller and is the leasing agent in charge of the property.

READ ALSO: Top 5 Emerging Industrial Markets in 2024

Developed by Tectonic with $16.5 million in construction funds from United Bank, the asset came online in 2023, CommercialEdge shows. The property is at 3618 McConnell Road and provides easy access to interstates 40, 85 and 840. Piedmont Triad International Airport is 21 miles away, while Winston-Salem, N.C., is within 34 miles of the property.

Sitting on a nearly 23-acre lot, the single-story distribution facility features 36-foot clear heights, ample column spacing, 60-foot speed bays, 30 dock doors, ESFR sprinkler systems and 30 knockouts. Additional features include trailer parking and 202 vehicle parking spots.

Cushman & Wakefield’s Tom Townes and Ryan Conboy worked on behalf of the seller. The property is available for lease, with the same team retained by SL Industrial Partners in charge of leasing efforts.

Big purchases in the area

The news comes after SL Industrial Partners recently sold an industrial property in the state, within the Charlotte market. In late November, the company sold a 402,390-square-foot building in Concord, N.C., to Stonelake Capital Partners, in a $51 million deal.

One of last year’s significant industrial deals closed near Charlotte and Greensboro. Equus Capital purchased a nine-building industrial portfolio for $124 million from Investcorp. Totaling 1.4 million square feet, this portfolio includes single-tenant distribution properties.

The post SL Industrial Partners Makes $30M North Carolina Buy appeared first on Commercial Property Executive.

The borrower was a joint venture of InLight Real Estate Partners and an Ares Management Real Estate fund. The loan will be used for lease-up of the project in addition to construction.

As currently planned, the first phase of Eastport Logistics Park will feature four buildings with clear heights of 32 to 36 feet, 135- to 185-foot truck court depths, 222 dock doors, 418 trailer parking stalls and 691 car parking spaces.

The two larger buildings (100 and 200) will total approximately 312,000 square feet, and the two smaller buildings (300 and 400) will total about 132,000 square feet. The second phase will offer build-to-suit options as large as 688,000 square feet.

READ ALSO: Port Activity Rebounds

The development’s location in Jacksonville’s Northside submarket is just off I-295, 5 miles from the I-95 interchange and 4 to 5 miles from the Port of Jacksonville’s Dames Point, ICFT CSX and Blount Island terminals. The project also has the capability for rail service by CSX, a main line of which abuts the property to the north.

The park is scheduled to deliver in the first quarter of 2026. 

Languid activity

The industrial real estate sector in Jacksonville’s Northside submarket has an overall vacancy of 5.7 percent on an inventory of about 32.5 million square feet, according to a fourth-quarter report from Cushman & Wakefield. Net absorption in the latest quarter was a negative 84,000 square feet, which was about on par for the region as a whole. This reflected a surge in deliveries of warehouse/distribution space with little preleasing.

Just after New Years, Affinius Capital provided a $77.4 million loan to ForeFront Commercial Real Estate, in conjunction with an Ares Management Real Estate fund, for their development of West Worth Commerce Center, a 992,000-square-foot industrial campus in Fort Worth, Texas.

Last fall, Affinius collaborated with Bank OZK on two loan deals.

The pair extended a $135 million loan to a joint venture of DECA Cos. and Wildcat Capital Management for the development and lease-up of an 850,000-square-foot industrial property in Perris, Calif.

They also loaned $83.8 million to a joint venture between Lincoln Property Co. and Goldman Sachs for the construction and lease-up of Waterstone, an 894,000-square-foot, four-building industrial development in Kyle, Texas, near Austin.

In each transaction, Bank OZK was the senior lender, while Affinius originated the subordinate portion of the note.

The post InLight, Ares Management JV Lands $82M for Industrial Project appeared first on Commercial Property Executive.

Miami International Tradeport is at 11130-11450 N.W. 122nd St. in Medley, Fla., just east of the Florida Turnpike and south of Okeechobee Road. The location provides easy access to Miami International Airport, PortMiami and major highways.

The buildings reportedly are suitable for logistics, distribution and manufacturing users and feature 30- to 36-foot clear heights, 54-foot column spacing and 130-foot non-shared truck courts, as well as ESFR sprinkler systems, LED lighting and ample parking.

Colliers’ EVP Erin Byers, Senior VP Lauren Pace, VP Ruben Suarez and EVP Steven Wasserman will be marketing the property, which has available spaces ranging from 34,000 to 140,000 square feet.

Mixed picture for Miami-Dade’s industrial market

The Miami-Dade industrial real estate market has seen net absorption fall to a negative 750,000 square feet over 12 months, as average vacancy has risen from 2.0 percent in 2022 to 5.5 percent at the start of this year, according to a January newsletter from Smith Commercial Property Group, of Doral, Fla.

“Tenant demand is slowing and rent growth has moderated after a sharp rise of 31.9 percent over three years,” Smith reported. “Despite these challenges, Miami remains a vital logistics hub with strong international trade links through its airport and port. Supply constraints, driven by geographical barriers like the Everglades, keep vacancy rates below the U.S. average, and rent growth is expected to pick up by 2026.”

This past November, BGO Cold Chain acquired Medley Cold Logistics, a 178,000-square-foot Class A cold storage facility in Medley, Fla., from Truist Securities for a reported $60 million. JLL arranged the deal for Truist. The one-story warehouse at 7600 N.W. 82nd Place is fully occupied by Quirch Foods.

The post Prologis Taps Colliers to Lease Miami-Area Business Park appeared first on Commercial Property Executive.

The partnership of Highline Real Estate Capital, Square2 Capital and Lone Star Funds has acquired 401 E. Las Olas Blvd. in Fort Lauderdale, Fla.’s financial district. CBRE represented the seller of the 410,561-square-foot office asset and secured acquisition financing.

The same week, the office property at 350/450 E. Las Olas Blvd. changed hands for $208 million in what was, at the time, the market’s largest transaction in a decade.

DWS, an affiliate of Deutsche Bank’s asset management arm, sold both properties for a combined $428 million, according to Commercial Observer.

READ ALSO: Office Sector Faces Ongoing Challenges Into 2025

DWS had acquired 401 Las Olas in 2016 for $220 million, according to CommercialEdge information. Completed in 2002 and renovated in 2005, the 23-story office tower features floorplates averaging 24,397 square feet and four levels of parking, as well as retail space. The building is LEED Gold-certified.

The 2.4-acre property occupies a full city block. Bank of America, Greenberg Traurig, Boies Schiller Flexner, Motorola Solutions and UBS are among its tenants.

CBRE Vice Chairman Christian Lee and Vice President Sean Kelly led the team that represented the seller. In addition, Vice Chairmen Tom Traynor and Tom Rugg, together with Senior Vice President Amy Julian and First Vice President Andrew Chilgren, assisted the buyer in sourcing acquisition financing. Director Adam Spengler, Senior Associate Tom Rappa, Associate Henry Fenmore and Financial Analyst Matthew Lee were also instrumental in the deal.

Fort Lauderdale, an attractive market

“Downtown Fort Lauderdale has exploded in recent years with new residential,” Square2 Capital Principal Jay Caplin told Commercial Property Executive.

“It is attracting a phenomenal mix of amenities, retail and restaurants. It is also the only 24/7 submarket in Broward County, located near executive decision-makers. This combination, especially in a post-COVID work environment, creates an attractive space for recruiting new talent and returning employees to the office.”

READ ALSO: Net Effective Office Costs Edge Up

Caplin added the trend is not new and it’s expected to continue, especially since there is no new office construction planned along the Las Olas Boulevard corridor.

“The vast majority of any development in downtown has been for-sale and for-rent residential, and some hotels,” he noted.

According to Caplan, 401 Las Olas is among the top-tier buildings in South Florida and one of only two Class AA trophy office buildings on Las Olas Boulevard.

With an occupancy of 94 percent and a purchase price substantially below replacement cost, “given the very high quality of the property, it represents a highly attractive and opportunistic investment for the new owners,” he said.

One of South Florida’s ‘most exciting secrets’

“The rise of Fort Lauderdale’s office market is quickly becoming one of the region’s most exciting secrets,” JLL’s Brady Titcomb, who specializes in the Fort Lauderdale office market, told CPE.

“It offers a prime location for businesses seeking the vibrancy of an urban center in a unique waterfront setting without the hefty price tag. You can enjoy all the lifestyle perks of Miami but at a fraction of the cost and without the heavy traffic and congestion,” Titcomb added.

“The sales of 401 Las Olas and 350/450 Las Olas during an otherwise turbulent capital markets environment validate that downtown Fort Lauderdale is a secure investment destination,” mentioned Colliers Vice Chair Jonathan Kingsley.

“The two properties traded at premium prices on a per-square-foot basis, albeit with higher cap rates than prior sales. This is a direct result of the increase in lease rates and net operating income in a dynamic leasing atmosphere in downtown Fort Lauderdale.”

A strong alternative to pricier markets

Fort Lauderdale’s office market has become a strong alternative to New York’s Park Avenue, Miami’s Brickell and Los Angeles’ Century City, noted Todd Rosenberg, co-founder & chairman of Pebb Capital.

Pebb Capital’s Class A office property, 110 East Broward, has led leasing activity in Fort Lauderdale’s CBD, securing over 119,000 square feet of tenancy since last year. Notable new leases include ABA Centers of America (48,000 square feet), Seacoast Bank (7,795 square feet), and Ludlow Coffee Supply opening in 2025.

The post DWS Sells Fort Lauderdale Office Tower for $220M appeared first on Commercial Property Executive.

LBA Logistics has purchased a 491,329-square-foot Class A industrial building in Port Wentworth, Ga., within metro Savannah. Lowe’s sold the asset for $46 million, according to CommercialEdge data. JLL represented the seller, which was also the former tenant.

The home improvement retailer had picked up the property in 2006 for $20 million, the same source shows.

The cross-dock facility has 32-foot clear heights, 106 dock-high doors, ESFR sprinkler systems,149 trailer parking spaces and 126 vehicle parking spots. At the time of the sale, the building was vacant.

READ ALSO: Industrial Real Estate’s Future Depends on Adaptability

The single-story facility is at 50 Innovation Drive, near interstates 95 and 16, providing easy access through the Savannah-Hilton Head area. Additionally, Savannah/Hilton Head International Airport is 4 miles from the property, while Georgia Port Authority’s Garden City Terminal is roughly 6 miles away and downtown Savannah is within 12 miles.

JLL Senior Managing Directors Britton Burdette and Dennis Mitchell, Director Jim Freeman, together with Executive Managing Directors Bob Currie and Tim McCarthy, negotiated on behalf of the seller.

Port of Savannah attracts industrial investment

Investors traded $455 million in industrial assets across the Savannah-Hilton Head market last year, according to CommercialEdge information. The Port of Savannah is one of the fastest growing in the nation, so demand for high quality space is strong. Of the 11 assets that changed hands in 2024, nine were Class A.

In November last year, Goldman Sachs Alternatives paid $100.6 million for a 942,210-square-foot facility. Scannell Properties sold the building, which is part of Rockingham Farms Logistics Park.

Transwestern Investment Group also made a big purchase in the metro in the second half of last year. It acquired Interstate West’s Building C, a 1.2 million-square-foot distribution facility in Ellabell, Ga. The seller was VanTrust Real Estate, which also sold Building A of that same industrial park, to Goldrich Kest.

The post LBA Pays $46M for Savannah Industrial Asset appeared first on Commercial Property Executive.

Nearly two years after acquiring Aveva Drug Delivery Systems, DifGen Pharmaceuticals has relocated its corporate headquarters from Princeton, N.J., to Miramar Park of Commerce in Miramar, Fla. The combined company now occupies 166,794 square feet across three locations within the 600-acre office and industrial campus in Broward County.

One of the park’s prominent health-care tenants since 1994, Aveva had initially occupied 44,450 square feet. The company expanded its footprint to a total of 125,294 square feet before DifGen’s relocation to 3200 Commerce Way.

READ ALSO: Top 100 Office Leases of 2024 Point to Stabilization

Sunbeam Properties & Development, the developer and owner of the park, broke ground on Miramar Park of Commerce in 1984. It is the largest locally owned and managed business campus in South Florida, with more than 5 million square feet of office/service, laboratory, pharmacy, light manufacturing and distribution space. More than 1.1 million square feet are leased by north of 30 top health-care-related tenants, creating a health-care hub that continues to strengthen the regional economy and business environment.

“We are focused on offering flexible management and innovative leasing solutions to build long-term partnerships with our tenants that foster their growth and success,” Peter “PJ” Apol, director of leasing and marketing for Sunbeam Properties & Development, told Commercial Property Executive.

Apol and Ryan Goggins, vice president of acquisitions, leasing and marketing at Sunbeam Properties & Development, represented the owner in the lease transaction.

A thought-after business campus

DifGen isn’t the only company moving its headquarters to Miramar Park of Commerce. In November, VSE Corp., a provider of aftermarket distribution and repair services for the aviation industry, said it was relocating its corporate headquarters from Northern Virginia. VSE, previously known as 1st Choice Aerospace, first moved to the campus in 2014, leasing 37,473 square feet. The company now occupies 142,861 square feet at the property.

In October, Sunbeam Properties & Development announced more than 92,000 square feet of new leases and expansions at the park. Memorial Healthcare System expanded by 26,546 square feet for a total footprint of more than 200,000 square feet for uses including administrative offices, training, pharmaceutical, IT and pathology.

SIMTEC Silicone Parts added 39,670 square feet for a total of 87,540 square feet and Sunshine Avionics and its affiliates added 14,617 square feet for a footprint of more than 38,000 square feet at multiple buildings. In a new lease, Kids SPOT Rehab took 12,052 square feet for a headquarters and administrative office.

Growing in the market

Apol told CPE Park Miramar, a new 126-acre mixed-use development the company is building next to the office and industrial park, is “generating a lot of excitement and interest in the market.”

Sunbeam Properties & Development received rezoning and site plan approval from the Miramar City Commission in November to move ahead with the project, which had been in the planning stages for about two years. Park Miramar will include more than 2,800 apartments, a 185-key hotel, 340,000 square feet of retail and restaurant space with a grocery store and 128,000 square feet of office space.

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Cannon TTM, a Cannon Commercial division, has obtained $60 million in financing to acquire a 2 million-square-foot industrial portfolio comprising two buildings, one each in Jacksonville, Fla., and Hammond, La. The properties are both fully leased to regional grocery chain Winn-Dixie. JLL secured the 10-year, fixed-rate CMBS loan.

The Jacksonville location is 12 miles from Jacksonville International Airport in the Riverside submarket, while the Hammond site is between New Orleans and Baton Rouge, La. Both assets are considered mission-critical distribution centers for Winn-Dixie, a subsidiary of Southeastern Grocers, which is owned by ALDI.

READ ALSO: Industrial Sector Transitions as Supply Shrinks

The long-term occupancy by Winn-Dixie and the assets’ locations in growing Southeast markets made this deal an attractive one for lenders, according to JLL Senior Managing Director Jeff Sause, who facilitated the deal along with Associate Joshua Blank.

Cannon TTM is an arm of Cannon Commercial, a private real estate investor associated with Tinder founder Justin Mateen and his brother Tyler Mateen. The firm recently acquired Wilshire Rodeo Plaza in Beverly Hills, Calif., from Nuveen for $211 million, in the largest transaction in that city since 2019.

CMBS lending surged in ‘24

CMBS lending has bounced back from interest rate doldrums in 2022 and ‘23, with issuance rebounded in 2024 to $108 billion, marking a 168 percent increase from 2023, according to Trepp. 

The resurgence was led by $70.7 billion in single-borrower issuance, indicating borrowers’ preference for floating-rate loans, which seems to represent a belief that interest rates will continue to decline.

Industrial loans via CMBS totaled only 8 percent of last year’s volume, Trepp reports. Retail loans were about a third of the total, however, compared with about 21 percent in 2019.

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An affiliate of Northside Hospital has purchased Glenridge Point, a 184,912-square-foot office complex in Sandy Springs, Ga. Richmond Honan Development & Acquisitions sold the two-building property for $14.2 million, according to CommercialEdge information.

Colliers Senior Vice President Tom Davenport and Vice President Dany Koe worked on behalf of the receiver, B. Riley Advisory Services.

The office complex last traded in 2018, when Richmond Honan acquired the asset for $44.5 million in a portfolio transaction from Pope & Land Enterprises, the same source shows.

Office complex on Pill Hill

Located at 100 & 200 Glenridge Point Parkway, the property is at the intersection of Interstate 285 and Georgia Highway 400. The office complex is nearby the Pill Hill medical hub and some 14 miles from downtown Atlanta.

Completed in 1970 on 3.6 acres, the five-story Glenridge Point incorporates floorplates ranging between 18,417 and 18,771 square feet, four passenger elevators and a total of 670 car parking spaces. The low-rise property underwent renovations between 1999 and 2016. Amenities feature outdoor space with seating area and EV parking spots.

The tenant roster includes eVestment and Keller Williams Realty First Atlanta, among others, according to CommercialEdge.

In the last quarter of 2024, office sales in the U.S. totaled $9.1 billion across 365 transactions, covering 46.9 million square feet. This marks a significant decline compared to the previous quarter, with a 37.1 percent drop in sales count and a 25.3 percent decrease in square footage.

Year-over-year comparisons also show a decline in office investment activity, with the last quarter of 2023 ending with $11.2 billion across 612 office sales.

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Milbrook Properties has acquired Westend Square, a 152,335-square-foot shopping center in Tallahassee, Fla., from a private individual. The property changed hands for $24 million.

Institutional Property Advisors Executive Managing Director Douglas Mandel worked on behalf of the seller and procured the buyer.

Shadow-anchored by an Aldi supermarket, Westend Square is at 2020 W. Pensacola St. The 13-acre property is currently subject to a $13.5 million CMBS loan originated by Wilmington Trust in 2015, CommercialEdge data shows. The note is expected to mature this year.

Shopping center in a student housing hub

Completed in 1978, Westend Square underwent a complete renovation in 2022, which coincided with Aldi’s opening. Its roster currently features Five Below, Planet Fitness, Pet Supermarket, Aaron’s Rents, Little Caesar’s, the U.S. Post Office and Citi Trends. The asset was 98 percent leased at the time of sale.

The retail center is near U.S. Route 90 and 3 miles east of downtown Tallahassee. Florida State University’s main campus and its two student housing communities, as well as Florida A&M University and Tallahassee Community College, are within a 3-mile radius. In 2024, there were some 157,000 people living in the 5-mile area surrounding the property.

The retail real estate sector continues to experience notable growth, despite challenges like bankruptcies and closures of legacy chain stores. The demand for physical retail space remains high, with vacancy rates at their lowest in 20 years, PwC Partner Andrew Alperstein told Commercial Property Executive in a recent interview.

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The facility will serve as a centralized hub for Southwire’s distribution and shipping activities in West Georgia, combining the operations of the company’s three existing distribution sites in Villa Rica, Ga.

The new development, which will become one of Southwire’s largest facilities, is expected to be completed by the third quarter of 2026. A year ago, Southwire opened a distribution center in Dallas-Fort Worth.

Georgia continues to bolster its status as the epicenter of industrial real estate in the Southeast due to textbook key factors such as extensive infrastructure connectivity, numerous ports and intermodal terminals, as well as business-friendly state policies, according to Avison Young’s Chris Hoag, CCIM.

READ ALSO: Industrial Real Estate’s Future Depends on Adaptability

“National capital market investors who activate these distribution centers and industrial projects have taken a keen interest in Georgia as they look to capitalize on the Southeast region’s continued population growth,” Hoag said.

Spec industrial projects meet rising demand

In January, Hoag and his colleagues Jason Holland, CCIM, and Andrew Joyner, CCIM, arranged the sale of 66.8 acres of land near the new Northeast Georgia Inland Port on behalf of the buyer, Alliance Industrial Co., for the development of two speculative industrial buildings totaling 540,408 square feet. Building 100 will be 113,536 square feet, and Building 200 will be 426,872 square feet.

To be named Alliance 985 Business Park, Alliance will break ground on the project in the first quarter of 2025 and is slated to deliver in early 2026. Alliance 985 Business Park is designed to meet the increasing demand for industrial space, featuring clear heights of 32 and 40 feet and ample auto and trailer parking.

With immediate access to I-985 and within 15 miles of I-85, it is well-connected to local, regional and national distribution channels. Tenants will benefit from proximity to key logistics hubs such as UPS and FedEx, while the Northeast Georgia Inland Port directly links to the Port of Savannah through Norfolk Southern.

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Cypress Equities, a national real estate investment and development firm, is partnering with New Orleans-based Lauricella Land Co. on the office building at 1600 Convention Center Blvd. Located at the corner of Henderson and Euterpe streets, it will be the first vertical development to be started in the River District, a 39-acre mixed-used neighborhood adjacent to the New Orleans Ernest M. Morial Convention Center.

Shell Plaza is expected to be completed by September 2026. The building will consist of 117,941 square feet of Class A office space fully leased by Shell on floors five to eight. There will be parking on floors two to four and 6,407 square feet of ground-floor retail space. The building will feature column-free floorplates of about 30,000 square feet and include a 3,101-square-foot fitness center.

READ ALSO: Why the Metroburb Model Works

“At this point, the ground-floor retail is intended for a restaurant that will serve as a premiere dining destination for visitors to the River District and adjacent convention center as well as Shell employees and guests,” Chris Maguire, Cypress Equities CEO, told Commercial Property Executive. He said a restaurant tenant has not been announced.

Financing Shell Plaza

Capro Capital, a Las Vegas-based real estate private equity firm, is providing equity for the project. While Maguire declined to release details on the total project cost or financing package, a $74.5 million senior loan was originated by the Tannenbaum Capital Group Real Estate platform, a group of affiliated commercial real estate-focused debt funds focused on primary and secondary metropolitan areas of the Southern U.S.

Sunrise Realty Trust Inc. and Southern Realty Trust, both lenders on the TCG Real Estate platform, closed on a total of $64.5 million. SUNS, a Nasdaq-listed mortgage REIT and institutional commercial real estate lender, closed on a $44 million commitment to the $74.5 million senior loan. SRT, a private mortgage REIT which originates CRE debt investments and provides capital to high-quality borrowers and sponsors, closed on a $20 million commitment. The remainder of the loan was syndicated to an unidentified affiliated lending partner.

Building design highlights

Situated on a 1.6-acre parcel, Shell Plaza was designed by global architecture firm Gensler with a glass curtain wall that will complement the history and vibrant culture of New Orleans. The architecture incorporates elements inspired by the Mississippi River’s shipping industry and will feature metal panels and a palette of bronze, metal, glass and concrete. The building’s sustainable design, which includes LEED certification, will include expansive glass facades, a polycarbonate mesh screen for the parking podium and a rooftop garden with views of the river and downtown. There will also be green areas and public spaces on the lower level along with the retail space.

Employees and visitors to Shell Plaza will have expansive views of the Mississippi River and convenient walking access to downtown New Orleans and residential neighborhoods including the Garden District.

Broadmoor LLC is the general contractor and Integrated Logistical Support Inc. of New Orleans is the civil engineering firm for the Shell Plaza project.

Mixed-use district plans

River District Neighborhood Investors LLC is a group of mixed-use and residential developers selected in 2021 by the New Orleans Ernest N. Morial Convention Center Authority to develop a mixed-use community with sidewalks, bike paths and green spaces designed to revitalize the vacant land along the riverfront. Louis Lauricella, a managing member of Lauricella Land Co., a fourth-generation real estate development firm in New Orleans, is also manager of RDNI.

The largest nonindustrial/oil and gas project in Louisiana history, the River District is expected to generate $43 million of net new annual tax revenues and more than $1 billion in economic activity. In addition to Shell Plaza, plans call for condominiums and apartments, retail space, hotels, restaurants, sports and entertainment venues. Of the anticipated 900 multifamily units, 450 are to be affordable or workforce residences.

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Westwood Financial has purchased Eastway Square, a 130,156-square-foot shopping center in Charlotte, N.C., from New Forum Partners. Berkley Capital Advisors arranged the sale.

The property has been under New Forum Partners’ ownership since 2020, when the company acquired Eastway Square from BC Wood Properties for $12.5 million. Atlantic Union Bank originated a $9.3 million permanent acquisition loan for that transaction, according to CommercialEdge information.

Completed in 1991, Eastway Square is anchored by regional supermarket chain Food Lion. The 14.7-acre property is located at 3211 Eastway Drive, at the traffic intersection with Central Avenue and less than 5 miles southeast of downtown Charlotte. The tenant roster includes Ross, America’s Best, Papa Johns, Subway, WingStop, Dental Works and Hibbett Sports.

Eastway Square serves more than 311,000 residents on a 5-mile radius, with an average household income above $112,000. It is one of several grocery-anchored retail properties Los Angeles-based Westwood Financial owns in Charlotte. These include Prosperity Village Square, Steele Creek Crossing, Steelecroft Shopping Center and The Arbors at Mallard Creek.

In today’s retail landscape, developers are increasingly focusing on leveraging location analytics and understanding consumer patterns, so as to create shopping centers that are not only profitable but also integral to the community’s lifestyle.

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The Miami office sector posted strong fundamentals throughout 2024, according to the latest CommercialEdge data. The metro marked a more than 41 percent jump in investment volume year-over-year, recording the busiest period in the last quarter.

Last year, high prices in the Magic City placed it fourth in the nation, the market also emerging as the most expensive gateway city for office deals, with assets trading at higher prices than even in Manhattan. Additionally, Miami’s end-of-2024 vacancy rate was the lowest in the U.S.

Significant projects boost Miami’s pipeline

As of December, the metro had 1.8 million square feet of space underway across 18 properties, accounting for 2.6 percent of existing stock—way above than the national average of 0.8 percent. Among gateway markets, Boston led the rankings with 3.4 percent, while Miami outperformed San Francisco (2.3 percent), Seattle (1.2 percent), Los Angeles (0.7 percent) and Washington, D.C. (0.3 percent). When adding projects in planning stages, Miami’s share reached 9.6 percent, second after Austin (12.6 percent).

The list of the largest projects under construction in the metro saw no changes as of December. Royal Caribbean’s new headquarters remains the largest development, scheduled to come online in early 2026. The 380,000-square-foot project is rising at 1050 Caribbean Way in Miami’s central business district.

The second-largest project underway is UHealth Medical Center at SoLé Mia, a 363,000-square-foot medical office development in North Miami. Turnberry and LeFrak Organization are the developers, with the completion date pushed to September 2025.

Projects that started going vertical last year added up to nearly 1.4 million square feet across 10 properties, representing 1.7 percent of the existing stock. Additionally, developers completed 1.2 million square feet across nine properties—accounting for 1.5 percent of total stock.

The largest office project underway for years, the 640,000-square-foot 830 Brickell tower by OKO Group and Cain International came online in October 2024. The project was the first Class A tower to be constructed in Miami’s urban core in more than a decade, and currently includes top-tier tenants such as Microsoft, Blackstone, WeWork and CI Financial Corp.

A top market for residential makeovers

Office-to-residential conversions emerged as an attractive option in recent years. As a response to this trend, CommercialEdge launched a tool that measures a building’s potential for residential conversion and highlights which markets post strong repurposing fundamentals. The Conversion Feasibility Index scores include three tiers, with Tier I properties being the most attractive candidates for such makeovers.

At the end of 2024, Miami had 21 office properties totaling nearly 2.9 million square feet within the Tier I category, while the Tier II included 138 buildings totaling 11.5 million square feet. The metro has a notable amount of office space posting high potential for residential conversions, with 3.7 percent of its office assets in Tier I and 12.4 percent in Tier II—emerging above the national averages 2.7 percent and 12.1 percent, respectively.

Ending the year as the priciest office market

Last year, Miami’s office sector saw in $1.4 billion in deals, with 46 properties totaling 3.5 million square feet changing hands—marking a 41.3 percent increase over the year. The volume reached $159.8 million at the end of the first quarter, while investment activity picked up during the second and third quarters. The last quarter ended with $668.7 million in deals—representing a 70.1 percent year-over-year growth.

In terms of total sales volume, Miami ranked fourth in the nation, after Los Angeles ($1.2 billion), while Manhattan led the rankings with $3.9 billion. The metro outperformed Chicago ($1.1 million), San Francisco ($786.6 million) and Seattle ($598.8 million).

Notable deals included the $443 million acquisition of 701 Brickell, a 685,215-square-foot high-rise. Nuveen Real Estate sold the 33-story property in one of the largest office transactions in Florida.

In 2024, Miami assets changed hands at an average sale price of $400 per square foot—above the national average of $175 per square foot. The Magic City emerged as the most expensive office metro in the nation, outpacing Manhattan ($369 per square foot), San Francisco ($350 per square foot) and Los Angeles ($281 per square foot). Chicago recorded the lowest figure among gateway markets, with an average sale price of $85 per square foot.

Mami’s vacancy rate lowest in the U.S.

Miami’s office vacancy rate stood at 15.2 percent as of December—below the national average of 19.8 percent and marking a 30-basis-point raise. The metro’s rate increased through 2024, from the 12.4 percent recorded in January.

The Magic City’s vacancy was the lowest across the nation. Miami was followed by Manhattan (16.6 percent), Boston (17 percent) and Chicago (18.8 percent), while San Francisco posted the highest U.S. rate at 28.8 percent.

Notable office leases that closed last year in Miami include DigitalBridge’s headquarters relocation agreement: a 79,141-square-foot deal in Delray Beach Fla. Later on, in September, MetLife Real Estate Management secured a 128,450-square-foot renewal at Wells Fargo Center in downtown Miami. The lease represented the largest office commitment in the city’s central business district in recent years.

Coworking share the highest in Miami

The coworking sector in Miami comprised approximately 3 million square feet across 144 locations as of December, slightly less than in Seattle (3 million square feet). Manhattan led the rankings with 11.3 million square feet, followed by Chicago (7.7 million square feet) and Los Angeles (6.5 million square feet).

Miami’s share of flex office space as percentage of total leasable office space reached 3.8 percent, the highest across gateway markets and above the national average of 1.9 percent. The coworking provider with the largest footprint in the metro remained Regus, with operations totaling 379,211 square feet. The companies that followed were WeWork (268,578 square feet), Spaces (226,223 square feet), Quest Workspaces (221,749 square feet) and Industrious (215,000 square feet).

In early December, Regus signed a 45,789-square-foot full-building lease in Miami Beach, Fla. The deal came after WeWork closed its location at Azora Exan’s 429 Lenox in May.

The post Miami’s Office Market Topped the Charts in 2024 appeared first on Commercial Property Executive.

The developments include the 181,993-square-foot Building 7, the 249,413-square-foot Building 11 and the 194,195-square-foot Building 12. Building 7 is slated for completion in the fourth quarter, while the other two will be complete by the first quarter of 2026.

Building 7 will feature a 32-foot clear height, as will Building 12. Building 11 will be taller, at 36-foot clear height. Building 7 will also include 39 dock doors, while Building 11 will have 54 dock doors and Building 12 will have 48 dock doors.

READ ALSO: Industrial Real Estate’s Future Depends on Adaptability

Horizon 16 is on Jimmy Deloach Parkway and Interstate 16, a site that is one of the last developable parcels that can accommodate bulk distribution within 15 miles of the Port of Savannah, according to the developers.

Phase Two is a follow-up of the completed Phase One, which includes 1.1 million square feet across three facilities and is 74 percent leased to such tenants as Ferguson and Harbor Freight. 

Evans serves as the project’s general contractor, while architect Atlas designed it. CBRE Senior Vice President William Lattimore is handling leasing at the property.

Trinity and Barings have formed joint venture partnerships to develop industrial properties before. The companies recently developed 85 Exchange, a 1.3 million-square-foot industrial park outside of Charlotte, N.C., which includes Amazon as a tenant.

Savannah industrial market in growth mode

Savannah is currently an industrial boom town, with 24 industrial projects underway as of the end of 2024’s last quarter, according to a Colliers report, totaling some 9.9 million square feet. Of that total, 69 percent (6.8 million square feet) were spec developments, while 31 percent (3 million square feet) were build-to-suit facilities. Completions totaled 15.8 million square feet.

Meanwhile, net industrial absorption was 693,000 square feet—excluding Hyundai and related suppliers—bringing the total for 2024 to 8.8 million square feet. The vacancy rate witnessed a minor uptick to 9.29 percent from the 9.25 percent recorded by the end of the third quarter.

And Savannah is preparing for more industrial growth as its infrastructure expands. The Port of Savannah is already the fourth-largest port by TEUs in the U.S., according to the Bureau of Transportation Statistics, and 14th in total tonnage. The U.S. Army Corps of Engineers continues its Savannah Harbor Expansion Project to deepen the entire harbor from its current 42-foot depth to 47 feet, which will add to its capacity.

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Florida’s waterfront commercial development boom is being driven by migration, demographic shifts and evolving tenant preferences, creating a surge in demand for mixed-use, lifestyle-driven spaces.

According to Ryan Shaw, first vice president of investments at Marcus & Millichap, “waterfront development in Florida is shifting away from traditional, single-use zoning, instead evolving into multi-functional destinations where people can live, work, relax and socialize in one integrated space.”

These waterfront developments in Florida are attracting both residents and tourists by offering vibrant, sustainable communities that cater to modern lifestyles. The appeal of these waterfront spaces has grown in the post-pandemic era, with tenants prioritizing amenities like food, beverage and entertainment as key features of new projects, Shaw added further.

READ ALSO: Why Mixed-Use Developments Are All About the Right Synergies

Florida continues to attract a significant number of residents, especially from the Northeastern U.S. Many newcomers are downsizing from single-family homes and seeking access to resort-style amenities without the burden of maintenance, elaborates Dominic Pickering, executive director at BTI Partners. This trend, coupled with growing demand for waterfront living in Florida, has led to a shift in the types of commercial developments that are taking root along Florida’s shores.

The natural human connection to water also plays a critical role in driving demand for Florida’s waterfront development.

“Waterfront spaces offer relaxation, connection to nature and a unique sense of place, making them ideal for dining, leisure and community interaction,” said Andrew Hellinger, principal at URBAN-X. However, in areas like Miami-Dade County, limited available waterfront land has increased competition and demand among developers.

Despite a recent slowdown in demand due to rising construction costs, increased supply and the impacts of natural events, the overall outlook for Florida waterfront commercial developments remains strong. Mika Mattingly, executive vice president at Colliers, emphasizes that Florida’s business-friendly environment and high livability ratings continue to support demand for premium waterfront properties, particularly in South Florida, where luxurious new projects remain highly sought after.

In response, developers are adapting to these market shifts by creating Florida waterfront developments that blend convenience, walkability and vibrant amenities, while prioritizing long-term sustainability in the face of climate challenges.

Florida’s transformative waterfront developments

This adaptability is evident in Florida’s waterfront commercial developments. The state’s coastline is undergoing a remarkable transformation, with an influx of commercial waterfront developments that blend office, retail, hospitality and entertainment spaces with scenic waterfront access. From Miami to Tampa, these waterfront developments are harnessing the state’s natural beauty and booming growth to create vibrant, mixed-use destinations that appeal to both businesses and residents alike.

In Miami, the Miami River Landing project exemplifies this shift, offering a dynamic combination of office, retail and residential spaces along the river. Its proximity to key urban amenities and waterfront views makes it a highly desirable location for businesses looking to establish a presence in Miami’s growing commercial waterfront development district.

READ ALSO: How Coral Gables Is Cementing Its Status as a Top Office Market

Similarly, the $2 billion Bahia Mar redevelopment in Fort Lauderdale is positioning itself as a commercial waterfront hotspot, offering luxury amenities, a marina and retail outlets. This ambitious project aims to transform the area into a “Mini Monaco,” further enhancing its appeal as a waterfront commercial development destination, while hosting events like the Fort Lauderdale International Boat Show, which draws millions annually.

On Tampa’s waterfront, the Water Street Tampa project stands out as a major Florida commercial waterfront development. This mixed-use project combines office spaces, retail, hospitality and public areas with a walkable design, aiming to become the city’s new economic hub. Nearby, 401 East Jackson is an office tower offering sweeping views of the waterfront and proximity to downtown amenities, reflecting Tampa’s increasing appeal as a commercial waterfront center along the Gulf Coast.

The Westshore Marina District in Tampa also blends commercial and luxury waterfront living, featuring high-end retail, dining and office spaces. This 52-acre development is anchored by the exclusive Marina Pointe, with a private marina offering access to the Gulf of Mexico, making it a prime location for businesses that value both luxury and waterfront accessibility.

North Bay Village, situated between Miami and Miami Beach, is another area drawing significant commercial waterfront development interest. MG Developer’s revitalization of this location includes a variety of new office, hotel and restaurant concepts that cater to the area’s growing demand for Florida waterfront commercial spaces.

Tackling challenges, seizing waterfront opportunities

Florida’s waterfront development is a balancing act, with developers navigating a complex landscape of rising costs, environmental concerns and evolving regulations. According to Alex Zylberglait, executive managing director of investments at Marcus & Millichap’s Miami office, Florida’s waterfront development faces significant challenges due to escalating land prices, rising construction costs and higher insurance premiums.

Additionally, the demand for infrastructure improvements—such as upgraded transportation and water systems—adds complexity to projects, often resulting in impact fees. Stricter building codes, implemented after the Surfside building collapse, are also reshaping how developers approach planning and execution, further influencing the development landscape.

Environmental sustainability is a critical factor influencing Florida waterfront projects. Developers must protect fragile ecosystems like mangroves and coral reefs, which play vital roles in biodiversity and storm protection.

Shoreline stabilization and sea-level rise adaptation are now standard considerations in project planning. MG Developer emphasizes the importance of incorporating eco-conscious features, while also ensuring compliance with stringent environmental regulations. Pollution control is another pressing issue, with initiatives to maintain clean waterways becoming a priority for long-term project viability.

“Waterfront spaces offer relaxation, connection to nature and a unique sense of place.”

—Andrew Hellinger, Principal, URBAN-X

At the same time, waterfront commercial projects are evolving to meet growing demand for vibrant, multi-use destinations. Developments like Tampa’s Water Street and Riverwalk are setting new standards by integrating retail, dining and entertainment into dynamic urban spaces. Miami River projects similarly combine hospitality, nightlife and marina access, offering both functionality and luxury.

The focus is expanding beyond traditional oceanfront locations to include riverfronts and bayfronts, as seen in Jacksonville and Fort Lauderdale, which offer untapped potential for innovative Florida commercial waterfront hubs.

Looking ahead, resiliency will shape Florida’s waterfront developments. Elevated construction, stormproof designs and sustainable materials are becoming the norm, ensuring projects can withstand rising sea levels and extreme weather. As Shaw notes, emerging markets like Cocoa Beach and North Bay Village are poised for growth, driven by improved infrastructure and accessibility. According to Hellinger, “rising sea levels and extreme weather events are reshaping development strategies, with a focus on resiliency and long-term viability.”

Florida’s waterfronts are not just about scenic views—they are evolving into dynamic commercial waterfront centers that balance economic opportunity with environmental responsibility, setting the stage for sustainable growth over the next decade.

Read the February 2025 issue of CPE.

Wave are images by Magnilion/iStockphoto.com

The post What’s Propelling Florida’s Waterfront Development Rush? appeared first on Commercial Property Executive.

This first phase consists of two speculative Class A warehouses totaling 1,556,350 square feet on 215 acres. Building 1 measures 538,450 square feet, while Building 2 is 1,017,900 square feet.

The cross-dock facilities feature 40-foot clear heights, 185-foot concrete truck courts, abundant trailer and car parking, more than 290 dock door positions and four drive-in ramps. Each building features a roofing system that can accommodate future solar panels, ample electrical service, an ESFR fire protection system and a 3,900-square-foot, air-conditioned office area.

A Trammell Crow spokesperson confirmed to Commercial Property Executive that there is no leasing at the property yet.

READ ALSO: Atlanta’s Industrial Sector Among the Busiest in 2024

Designing of Jackson 85 North’s second phase is underway and includes two additional speculative warehouses measuring 210,080 and 524,160 square feet. Phase Two could also accommodate a build-to-suit warehouse of up to 750,000 square feet.

When the project was first announced in January 2023, the plans for the second phase featured a single building of about 700,000 square feet.

Jackson 85 North is about 60 miles northeast of Atlanta, with easy access to Interstate 85 and the rest of metro Atlanta.

Marketing and leasing for the entire project are being led by Wilson Hull & Neal Real Estate.

Ports, inland and not

Metro Atlanta’s northeast submarket will be benefitting from a major development by the Georgia Ports Authority, according to a new report from CBRE. The 104-acre Northeast Georgia Inland Port is expected to break ground within the next year.

The inland port will feature 9,000 feet of working track initially, a quantity that will eventually double, as well as a start-up capacity of 80,000 container lifts, all to be served by Norfolk Southern. Strategically, the facility is intended to expand the Port of Savannah’s reach into Northeast Georgia, in part from the fact that it’s less than 20 miles from I-85.

In late October, Trammell Crow Co. and MetLife Investment Management completed a quite different industrial project at the other end of the U.S., a two-story industrial property totaling about 702,000 square feet. Seattle Metro Logistics is about 3 miles from the Port of Seattle.

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Stonelake Capital Partners has purchased a 123,140-square-foot industrial building in Charlotte, N.C. Albany, N.Y.-based Steins Fiber sold the property for $13.5 million, Mecklenburg County public records show.

Avison Young arranged the transaction on behalf of the buyer, while Piedmont Properties represented the seller.

The deal marks Stonelake Capital Partners’ second off-market industrial purchase in the metro. The company entered the Charlotte industrial market in late 2024, with the acquisition of a fully occupied, 402,390-square-foot facility. At the time, Stonelake Capital Partners paid $51 million for the property, which is situated within the Concord Airport Business Park. That transaction was also arranged by Avison Young.

READ ALSO: Industrial Real Estate’s Future Depends on Adaptability

The property is at 6000 Old Concord Road and it’s fully leased to Foundation Building Materials and Dixie Plywood & Lumber Co., CommercialEdge shows. The asset allows easy access to interstates 485, 85 and 277. Charlotte Douglas International Airport is within 13 miles, while Concord, N.C., is 22 miles away.

The building features 22-foot clear heights, 13 dock high doors, one grade level door, LED lights, skylights, a fenced truck court and potential for as much as 2 acres of outdoor storage space. Avison Young’s Principals Chris Skibinski, Henry Lobb, Vice president Abby Rights and Associate Broker Jewell Gentry worked on behalf of the buyer. Partner Will Jenkins, Director of Investments Marc Hedrick and Investment Associate Jack Harvey with Stonelake Capital Partners also assisted. The seller was represented by Piedmont Properties’ President Scott Hensley.

Strong industrial activity

Industrial properties traded at one of the lowest average sale prices in the South region, of $79 per square foot, a recent CommercialEdge report shows. Charlotte’s industrial sales volume stood at $781 million, outperforming Baltimore ($486 million) and Memphis ($362 million). The metro maintained its position as one of the South’s tightest markets, with an industrial vacancy rate of 5.4 percent, below the 7.5 percent national average.

In December, INDUS Realty Trust acquired a majority stake in a 21-building industrial portfolio with assets in Charlotte and Charleston, N.C. Dubbed The Carolinas Portfolio, the 4.3 million-square-foot collection is valued at $575 million. Earlier last year, LM Real Estate Partners paid $97 million for an approximately 1.4 million-square-foot industrial property in the area, in a deal brokered by Avison Young.

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Moreover, the market had 8.2 million square feet under development during the same period, significantly surpassing the 3.3 million square feet recorded in December 2023.

Despite this growth, the metro’s vacancy rate increased 310 basis points year-over-year, as the influx in new supply put a dent in the metro-level average. Throughout the year, 9.3 million square feet of industrial space was delivered.

However, recent major projects underscore the market’s resilience and robustness. In January, Hines and Aubrey Corp. announced plans for a 10 million-square-foot mixed-use development, encompassing more than 2,390 acres. The industrial segment of this project will occupy more than 1,200 acres across two campuses, with the rest of the space being used for data center, retail, hotel and residential purposes.

Development pipeline grows, still below national average

At the end of December, Atlanta’s industrial sector had 8.2 million square feet under construction, more than double the 3.3 million square feet registered in December 2023. The 26 projects in the pipeline are expected to account for 1.4 percent of the metro’s total inventory.

The market’s development index was below the 1.7 percent national average, but above peer markets such as Chicago (0.5 percent), Indianapolis (1.2 percent) and New Jersey (1.0 percent). Phoenix (4.5 percent) continued to lead nationally.

At the end of the year, The Broe Group acquired a 14-acre site in Georgia’s Fulton County Industrial District for the construction of a 225,000-square-foot build-to-suit facility. The building will have rail service, with pad-ready construction expected this February.

Additionally, 18 projects totaling almost 4.9 million square feet broke ground last year. One of them is Stonemont Financial Group’s Stonemont Park 75 South, a 903,701-square-foot industrial development in Locust Grove, Ga. In June, the firm obtained a $42.5 million construction loan for the three-facility campus.

Industrial completions remain steady

Last year, Atlanta’s industrial market saw 26 properties coming online, totaling almost 9.3 million square feet—about 1.6 percent of the metro’s total inventory. This figure was slightly lower than the 9.7 million square feet completed in 2023.

Compared to peer markets, only Indianapolis (6.1 million square feet) and Kansas City (4.5 million square feet) saw less space delivered. Phoenix (32.7 million square feet) saw the most completions, followed by Dallas (29.1 million square feet) and Chicago (14.9 million square feet).

Last year, Panattoni Development completed the almost 1.4 million-square-foot Building 6 within Speedway Commerce Center, a 546-acre industrial campus in Hampton, Ga. Target agreed to prelease the distribution center in October 2023.

Assets trade for less, investment volume grows

Atlanta’s industrial investment volume reached roughly $2 billion last year, about $100 million higher than in 2023. However, assets traded on average for $108 per square foot, a slight year-over-year decrease from $116.

Among peer markets, New Jersey ($213 per square foot) and Phoenix ($162 per square foot) remained in the spotlight, while Chicago ($92 per square foot) and Indianapolis ($73 per square foot) were at the opposite end of the spectrum.

In one of the largest deals in the metro from last year, ATCAP Partners purchased Gwinnett Park, a 12-building, 753,700-square-foot light industrial park. Dogwood Industrial Properties, an investment platform of TPG Real Estate, sold the campus completed between 1973 and 1986.

Atlanta’s vacancy rate among the lowest nationally

At the end of December, Atlanta’s industrial vacancy rate clocked in at 6.8 percent, 310 basis points higher year-over-year. However, the figure is still 1.2 percent below the national average. Among peer markets, the metro had one of the lowest vacancy rates, while Indianapolis (9.8 percent) and Chicago (9.7 percent) had the most available space.

In November, Samaritan’s Purse signed a 172,000-square-foot, full-building lease at a warehouse at 1347 Highway 92 in Acworth, Ga. The charitable organization will use the space to process Christmas gifts for children. Prologis acquired the facility in 2023 from Link Logistics.

Other notable leases in the area include Souto Foods’ commitment to 200,000 square feet at Sugarloaf Logistics Hub, a 2.2 million-square-foot master-planned industrial development in Lawrenceville, Ga. Foxfield and AEW Capital Management are the owners of the property that also includes a cold storage element.

The post Atlanta’s Industrial Sector Among the Busiest in 2024 appeared first on Commercial Property Executive.

Ben E. Keith Foods has started construction on a 707,000-square-foot distribution center in Alachua, Fla. The project is expected to reach completion by fall 2026.

The warehouse is taking shape on a 148-acre lot on Technology Avenue within Interstate 10 Industrial Park, according to Milton Post. The firm acquired the site in June for $13.5 million, Alachua County records show.

This will be Ben E. Keith Foods’ second Florida location. The first one is a 83,500-square-foot warehouse in Gainesville that became one of the company’s holdings after it acquired Florida Food Services Inc. in 2022.

READ ALSO: Industrial Real Estate’s Future Depends on Adaptability

The firm has 10 divisions, shipping to 20 U.S. states. The upcoming facility will house its Florida Division headquarters and help expand its reach in the Southeast region.

When complete, the property will have 105 dock doors and parking for 120 tractor trailers. It will feature advanced logistics systems and 24/7 intake and outtake operations for better serving customers.

Industrial development in Greater Jacksonville

Industrial projects under construction in Greater Jacksonville, Fla., totaled 6.9 million square feet in the last quarter of 2024, a recent Colliers report shows. However, the pipeline is expected to shrink as construction starts were less often when compared to the last seven years. The majority of underway developments were warehouse or distribution facilities, while cold storage projects amounted to nearly 900,000 square feet.

In August, VanTrust Real Estate received approvals for a 547,000-square-foot warehouse within Imeson Park South in North Jacksonville. The speculative facility will be the developer’s fifth project to be constructed at the 3 million-square-foot master-planned campus.

The post Ben E. Keith Expands in Florida With 707 KSF Facility appeared first on Commercial Property Executive.

The location is at the intersection of interstates 65 and 840. The town is about 25 miles south of Nashville.

Simon will develop the mixed-use center in collaboration with Nashville-based Adventurous Journeys Capital Partners. That company works in the hospitality, mixed-use and residential sectors; its brands include Graduate Hotels, Marine & Lawn Hotels & Resorts and Field & Stream Lodge Co.

Preliminary project plans call for about 75 retailers, as well as restaurants and a hotel. Residential options and big-box retailers could be added at a later time.

A Simon spokesperson told Commercial Property Executive that the project is in such an early stage that a site plan and renderings are not yet available.

READ ALSO: Retail Development Is Bouncing Back, but the Game Has Changed

Simon already has some noteworthy retail assets in the Nashville area. These include the super-regional  Opry Mills, the metro’s largest shopping destination, featuring more than 200 stores and 20 restaurants. Another is The Mall at Green Hills, which Simon owns through a joint venture with Taubman Realty Group.

Last September, Simon Property Group LP amended, restated and extended its $3.5 billion credit facility. The move was intended to give Simon more financial flexibility as it expands experiential options at many of its malls.

Good neighborhood

Demand for retail space in Nashville rose steadily in 2024, according to a fourth-quarter report from Matthews Real Estate Investment Services. Available space was tight, however, despite the 1.3 million square feet delivered throughout the year. About 760,000 square feet was under construction as of December, a pipeline still below the metro area’s average for the past 10 years.

Based on Nashville’s strong population growth, Matthews predicted that retail vacancy will likely remain below 3.5 percent through the next five years, below the national average.

The post Simon Eyes Nashville Mixed-Use Center appeared first on Commercial Property Executive.

Hines and Aubrey Corp. have teamed up to develop Aubrey Village, a mixed-use project spanning more than 2,390 acres in Bartow County, Ga., within Greater Atlanta. The multi-phase development’s timeline will stretch up to 12 years.

The industrial component will take up more than 1,200 acres across two separate campuses that are located on the project’s opposite ends. Another 600 acres are entitled for a mixture of retail and residential uses.

Upon completion, Aubrey Village will encompass up to 10 million square feet of manufacturing, data center, logistics, retail, restaurant and hotel spaces, as well as residential properties. The housing component will feature single-family homes, townhomes and apartments for 2,800 families.

READ ALSO: Why Mixed-Use Developments Are All About the Right Synergies

During Phase One, which is scheduled to kick off later this year or early 2026, Hines will work on the site’s infrastructure. Aubrey Parkway, the mixed-use development’s primary roadway, will connect all sections of the project.

Aubrey Village will take shape roughly 52 miles northwest of downtown Atlanta within Pine Log, a 14,000-acre former wildlife management area that The State Department of Natural Resources leased for almost 50 years. That changed in May 2023 when Aubrey Corp. opted not to renew the agreement.

Lee & Associates Executive Vice President Jim Ramseur and Research Coordinator Samantha Wheeler represented Aubrey Corp. in creating the joint venture with Hines. Ramseur Real Estate Advisors will provide counsel on the commercial and residential parcels.

Close to several employment centers

Situated alongside U.S. Route 411 at the Interstate 75 interchange, the site is also close to several current and future large employers operating in Bartow County.

Hyundai Motor Group, together with SK On, invested up to $5 billion in a new electric vehicle battery manufacturing facility at Bartow Centre, a zoned manufacturing and industrial site located on Highway 411. That factory is set to become operational this year.

Qcells, a solar industry operator, also invested $2.5 billion in a manufacturing facility within the county’s borders. Upon delivery, the property will produce 3.3 gigawatts of solar ingots, wafers, cells and finished panels. Construction work began in 2023.

And, earlier this month, county officials approved the rezoning of another 500 acres at Pine Log. The site, to be transformed into a granite mining quarry, is about 9 miles from the future Aubrey Village.

The post Hines JV Eyes 10 MSF Atlanta Mixed-Use Project appeared first on Commercial Property Executive.

In the largest office lease ever recorded in Miami’s Wynwood submarket, Amazon agreed to occupy 50,333 square feet at Wynwood Plaza, a 1 million-square-foot mixed-use development.

L&L Holding Co. and Oak Row Equities are the owners. Shorenstein Investment Advisers is the project partner, while Claure Group serves as co-investor.

Cushman & Wakefield assisted the landlord in the deal, alongside with in-house representation, while Savills worked on behalf of the tenant.

Located at 95 NW 29th St., Wynwood Plaza is taking shape 6 miles from downtown Miami and will have access to interstates 95 and 195. Miami International Airport is some 8 miles west.

READ ALSO: What’s Defining Office in 2025?

Miami’s office vacancy rate at the end of December clocked in at 15.2 percent, posting the lowest rate among the top U.S. markets, the latest CommercialEdge office report shows. Despite a 110-basis-point increase, the metro’s figure was lower than the 19.8 percent national average.

A mixed-use campus in Miami’s Art District

The mixed-use campus broke ground in March 2023, after the developer secured a $215 million construction loan from Bank OZK. The project is scheduled for completion in the following months.

Wynwood Plaza will comprise a 12-story Class A, 266,000-square-foot office building and a residential component that will feature 509 luxury rental apartments. The property will also include 25,000 square feet of retail and a 26,000-square-foot outdoor public plaza.

The office component will have various amenities such as a fitness center, a cafe and bar lounge, rooftop private seating areas and conference spaces. Floorplates will range from 23,756 to 25,205 square feet.

L&L Holding Co. Vice President Bryan Lapidus, together with Cushman & Wakefield Managing Director Andrew Trench, Senior Director Edward Quinon and Vice Chairman Brian Gale, worked on behalf of the landlord. Savills Executive Managing Director Tom Capocefalo and Vice Chairman Mike Catalano represented the tenant.

The post Amazon to Open Miami Office appeared first on Commercial Property Executive.

This marks the second acquisition for the $300 million joined venture focused on acquiring open-air, grocery-anchored shopping centers. The REIT holds an 80 percent stake, while PECO owns the remaining 20 percent in the partnership.

Kitson & Partners previously owned the asset, according to CommercialEdge data. The company had acquired Oak Grove Shoppes for $9 million back in 2019.

Built in 1983 and redeveloped in 2023, Oak Grove Shoppes encompasses 11 buildings on some 20 acres. Ameris Bank provided a $27.2 million construction loan for the redevelopment of the open-air shopping center, the same source shows.

READ ALSO: What’s in Store for Retail in 2025?

Anchored by Marshalls and a 48,000-square-foot Publix store, Oak Grove Shoppes also features a diverse mix of regional and national tenants such as Subway, BurgerFi, Metro Diner and O2B Kids, among others. At the time of the sale, the retail center was 91 percent leased.

Located at 995 N. State Road 434, the shopping center is within Orlando’s Altamonte Springs submarket. The property is near Interstate 4, which provides access to downtown Orlando.

At the end of last year, the Cohen & Steers REIT owned four grocery-anchored and community shopping centers across the U.S. One of the properties is Marketplace at Highland Village, an approximately 451,000-square-foot open-air retail asset in Dallas that the investment trust acquired through a joint venture with Sterling Organization.

Orlando’s thriving retail market

Orlando’s retail market has been thriving due to its rapidly growing population and robust economy. Last year, the transaction volume amounted to nearly $1.1 billion, a 14.7 percent increase from the previous year, according to a recent Cushman & Wakefield report.

Meanwhile, more than 855,000 square feet of new retail space was delivered throughout 2024, with an additional 1 million square feet under construction by the end of the fourth quarter.

Demand remained strong, with leases totaling 492,000 square feet in the last quarter alone. The average asking rate for retail space in the metro rose to $29.89 per square foot by the end of the fourth quarter, reflecting a 4.4 percent year-over-year increase.

The post Cohen & Steers, Phillips Edison Buy Orlando Shopping Center appeared first on Commercial Property Executive.

JLL Capital Markets worked on behalf of the borrowers to arrange the loan from New York Life Real Estate Investors. Managing Director Chip Sykes and Vice President Kelsey Bawcombe led JLL’s debt advisory team.

“The region is consistently ranked as one of the top places in the nation to live, work, raise a family or start a business,” Sykes told Commercial Property Executive.

“Cary’s advantageous location near one of the fastest-growing metro areas in the nation and several premier research universities has propelled the city’s economic and population growth. This dynamic growth in the region has led Cary to become a preferred residential corridor in the Raleigh MSA.”

Fenton, created in 2021, includes 246,000 square feet of retail space, 357 multifamily units as part of The Allison and 183,000 square feet of office space, creating a vibrant live-work-play environment.

Near Cary Town Boulevard, Fenton provides easy access to the Raleigh-Durham-Chapel Hill area and I-40. It is 15 minutes from downtown Raleigh and has robust employment hubs, such as the Research Triangle Park. The region has a population of 2 million.

READ ALSO: Why the Metroburb Model Works: An NJ Success Story

This region has become a hotspot for the health-care, technology and biotech industries. The University of North Carolina at Chapel Hill, North Carolina State University and Duke University are nearby.

The trendy retail section welcomes chef-driven restaurant concepts and nearly all merchandising categories and their national brands.

Rising demand for mixed-use developments

“The macroeconomic success of the Research Triangle, particularly in Cary, has been a driving force behind the region’s mixed-use development performance,” Marcus Jackson, principal with Avison Young’s Capital Markets team, told CPE.

“For many years, Cary was considered a traditional single-family suburban market. Still, following the pandemic-induced population boom, which attracted younger residents used to the ‘live-work-play’ lifestyle, mixed-use development increased to meet the evolving demands of the city’s population,” he said.

Cary’s retail sales and multifamily occupancy benefit from remote workers who retained their high-paying salaries in major gateway cities, as well as the Research Triangle’s highly educated workforce in the health-care, technology and biotech industries.

In October, the debt for another mixed-use property, Smoky Hollow, in nearby Raleigh, was refinanced through a $134 million loan provided by Barings. Kane Realty Corp., Williams Realty & Building Co. and Lionstone Investments are the project’s developers.

In June, Hines completed North Loop Green, a 1 million-square-foot mixed-use development in Minneapolis. The developer teamed up with AFL-CIO Building Investment Trust and Marquee Development to deliver the property, which comprises 10,000 square feet of retail space, a 1-acre public park, 350 residential units, 100 short-term rental residences and 350,000 square feet of office space.

The post Hines JV Obtains $191M for Research Triangle Development appeared first on Commercial Property Executive.

Coworking and flexible office provider Venture X has signed a 30,262-square-foot lease at Cousins Properties’ Harborview Plaza in Tampa, Fla. The company will occupy the entire sixth floor at the property and is expected to move to Harborview Plaza in January 2026.

The present lease is Venture X’s ninth coworking location in Florida and the first in the Tampa Bay area.

JLL Executive Vice President Jim Moler and Senior Vice President Deana Beer worked on behalf of the ownership, while CBRE Senior Vice President K.C. Tenukas represented Venture X.

Harborview Plaza

Atlanta-based Cousins Properties owns and manages Harborview Plaza since its acquisition in October 2015 from Highwoods Properties. The office mid-rise traded for $49 million, according to CommercialEdge information.

Completed in 2002, Harborview Plaza is a Class A, 205,049-square-foot property covering a 6.7-acre site. The tenant roster includes Milner Inc., Mercer, HCA West Florida Division Office and First American Title Insurance Co., the same data provider shows.

The office building is at 3031 N. Rocky Point Drive West in the Westshore submarket, just off Florida State Road 60 and near Tampa International Airport. Downtown Tampa is some 8 miles east. Major thoroughfares in the area include interstates 275, 4 and 75.

Amenities at the property feature an on-site café, a fitness center, a conference facility, multi-level parking and free shuttle service to Tampa International Airport.

To address the demands of today’s hybrid workforce, coworking spaces are evolving. Operators are increasingly adopting business models similar to those in the hospitality industry, incorporating a diverse range of workspace types under consolidated networks.

The post Cousins Properties Secures Coworking Tenant in Tampa appeared first on Commercial Property Executive.

Robinson Weeks Partners has acquired two industrial buildings spanning 831,974 square feet in Olive Branch, Miss., a Memphis, Tenn., submarket. Hillwood previously owned the asset duo, according to CommercialEdge data. Cushman & Wakefield represented the seller.

This purchase marked Robinson Weeks’ first purchase under its Industrial Acquisition Fund. The investment vehicle, together with the Robinson Weeks Industrial Opportunity Fund IV, garnered commitments of roughly $152 million in 2024.

The two facilities are part of the 10-building Legacy Park, a 6.8 million-square-foot industrial campus developed by Hillwood. The property is roughly 3 miles from the Olive Branch Airport, while the Memphis International Airport is about 16 miles northeast. A BNSF railway station operates some 10 miles away.

READ ALSO: Industrial Sales Prices Inched Up in 2024

Encompassing 448,942 square feet, the cross-dock property at 11363 Progress Way features 36-foot clear heights while the 383,032-square-foot rear-load building at 11384 Progress Way includes 32-foot clear heights. The duo comprises a combined total of 138 dock doors, 514 auto parking spots and 182 trailer spaces.    

Both assets were fully leased at the time of sale. The tenant roster includes Wheeler Fleet Solutions, which operates an e-commerce fulfillment and distribution center, and Buske Logistics, a warehousing and 3PL company.

Cushman & Wakefield Vice Chairman Stewart Calhoun and Executive Director Casey Masters represented Hillwood.

Robinson Weeks’ growing industrial footprint

Since Robinson Weeks closed its first real estate fund in 2010, the company has acquired and developed 22.2 million square feet of Class A industrial warehouse space valued at $2 billion.

One of its developments is in North Charleston, S.C. The firm broke ground on the 635,328-square-foot industrial project dubbed Charleston Global Crossing early last year. At the time, it was considered the largest speculative industrial project in the city.

Memphis industrial assets sell for less as pipeline ramps up

Metro Memphis’ industrial investment volume amounted to $362 million during the first 11 months of 2024, according to a CommercialEdge report. Assets traded for $57 per square foot—significantly below the national average of $128 per square foot. The market posted the lowest prices across the Southeast, below Charlotte, S.C., ($79 per square foot) and Atlanta ($115 per square foot).

Meanwhile, the metro’s industrial pipeline totaled 10.5 million square feet. That represented 3.5 percent of total stock, an index which ranked third nationally. Only Phoenix (5.7 percent) and Kansas City, Mo., (3.9 percent) surpassed the Home of the Blues.

As the market’s construction activity ramped up, the industrial vacancy rate stood at 8.6 percent in November, 110 basis points higher than the national average, the report reveals. Industrial rents grew by 4.6 percent year-over-year through November, below the national average growth of 6.9 percent during the same period.

One of the market’s significant industrial deals of last year was also a portfolio transaction. Faropoint purchased a 1.7 million-square-foot, 16-building industrial portfolio in Memphis and Jacksonville, Fla., in August 2024. The collection, which included 12 assets in Memphis, sold for $105 million in an off-market transaction.

The post Hillwood Sells 2 Memphis Industrial Assets appeared first on Commercial Property Executive.

To facilitate the development, PowerHouse and Poe have secured access to an initial power capacity of 335 megawatts for the campus, which will be expandable to 402 megawatts. A new switch station will be built by regional utility LG&E, which is slated to be completed by September 2026, along with a dedicated on-site substation. 

Water is equally important for the development. The campus will benefit from Louisville Water Co.’s excess capacity within its water treatment system, as well as the nearby Ohio River, with an average of 75 billion gallons flowing by Louisville daily.

READ ALSO: Data Center Demand Keeps Surging, Despite Challenges

In the data center industry, Kentucky and southern Indiana have been relatively minor players, but there are indications that that is beginning to change. In 2024, Facebook parent Meta unveiled plans for a $800 million data center project in Jeffersonville, Ind., which is in metro Louisville.

Also last year, the Kentucky legislature enacted a 50-year tax-exempt program for a wide range of activities involving data centers: the sale, purchase, use, storage, consumption, installation, repair and replacement of data center equipment in large population centers in the Commonwealth, effectively Jefferson County. The Poe-PowerHouse project is taking advantage of the new tax exemption.

PowerHouse has 87 data centers underway or completed, representing more than 5.9 gigawatts of power, in six U.S. markets. Recent deals include receiving a $600 million loan for a 50 megawatt build-to-suit data center development in Northern Virginia along with partners Blue Owl Real Estate and Chirisa, and the purchase of 122 acres in Charlotte, N.C., to build a 300 megawatt data center campus in partnership with real estate investment management firm Town Lane.

Louisville-based Poe Cos. specializes in multifamily, industrial and hospitality development. The company’s partnership with PowerHouse represents its first foray into data centers.

Data center boom unrelenting and power hungry

Power is now key to the growth of the industry. Data centers use between 100 to 200 kWh per hour, or 72,000 to 144,000 kWh per month, according to IT infrastructure specialist PivIT. By contrast, the average American home consumes 10,500 kWh per year.

The U.S. has the most hyperscale data centers—north of 5,300 such facilities, PivIT notes. In 2019, the nation’s data center load was 19 gigawatts, a total that could reach 35 gigawatts by the end of the decade. 

Data centers also contribute to climate change through their energy consumption, though they don’t do so directly by producing carbon dioxide; the electricity they consume does, PivIT explains. Data centers are responsible for about 1 percent of global energy-related emissions.

The post PowerHouse JV Eyes Kentucky’s 1st Hyperscale Data Center appeared first on Commercial Property Executive.

Atlanta’s office sector headed toward 2024’s end with mixed performance, but continued to show more resilience than other Sun Belt markets, CommercialEdge data shows. Office buildings in Atlanta still traded at below-average rates, while the market’s overall vacancy managed to remain at relatively healthy levels, considering the sector’s woes.

A new coworking provider entered the market in 2024, while overall investment volume remained muted. Development was active in some areas, notably with big life science projects taking shape, along with some mixed-use.

Supply expansion stays on track

Atlanta had 1.7 million square feet of office space under construction as of November, which was 0.8 percent of existing inventory—on par with the national figure. Adding planned and prospective developments to the mix brings the share to 2.3 percent of stock.

Compared to other Sun Belt metros, Atlanta was severely behind Austin, Texas (3.7 percent of stock underway), but slightly ahead of Charlotte (0.7 percent) and Houston (0.7 percent).

READ ALSO: Office Report: Coworking Spaces Evolve for Post-Pandemic Needs

Portman Holdings’ office building within the mixed-use Spring Quarter project had been the largest under construction as of November—it was completed last month. The asset has 530,000 square feet of office, 15,000 square feet of private terraces and 20,000 square feet of amenity space. The larger mixed-use development is also slated to eventually include 40,000 square feet of retail, 370 luxury rental units and 600 market-rate units.

Developers completed 11 office buildings encompassing 1.6 million square feet across metro Atlanta year-to-date through November. This was 0.7 percent of existing inventory, 10 basis points above the U.S. and 20 basis points ahead of Houston (0.5 percent).

Georgetown Co., Beacon Capital Partners and RocaPoint Partners completed the first building of Campus 244, an adaptive reuse of a 1970s building, in the Perimeter North submarket. The asset has 377,775 square feet of rentable office space and is part of a larger mixed-use project, which is set to also include restaurants, retail and a hotel.

Another significant completion earlier in 2024 was Trammell Crow Co.’s first phase of Science Square, developed in partnership with Georgia Advanced Technology. The 368,258-square-foot building includes lab and clean room space, base-building systems, a 38,000-square-foot solar array and an energy recovery system.

Conversion potential grows

As office utilization continues to evolve and demand is nowhere near pre-pandemic levels, many owners are looking toward alternative solutions. Conversions to residential use continue to rise in popularity and Atlanta’s office sector is no exception. CommercialEdge created the Conversion Feasibility Index, a score calculated from various building characteristics aimed to help developers and investors identify office assets that have a high potential for conversion.

Atlanta had 16 office buildings—encompassing 2.6 million square feet—in the Tier I category for office-to-residential conversion, which have a CFI ranging from 90 to 100. It also had 74 properties—11.7 million square feet—in Tier II, which have a CFI between 75 and 89.

Invest Atlanta partnered with several companies—including The Integral Group, The Atlantic Cos., T. Dallas Smith & Co. and Lalani Ventures—to redevelop three office assets in the metro’s CBD, Atlanta Business Chronicle reported. The buildings at 1, 2 Peachtree St. and 14 Marietta St. total nearly 2 million square feet and are estimated to yield roughly 600 multifamily units, but plans are not final yet. Originally an office tower, 2 Peachtree St. NW dates back to 1966 and rises 44 stories. Holding a CFI score of 75, the property is slated to include 200 affordable units upon conversion.

Atlanta office sector’s vacancy below nation’s average

Office vacancy across metro Atlanta stood at 17.8 percent as of November, up 80 basis points year-over-year. Meanwhile, the national average increased 120 basis points, to 19.4 percent. Compared to its Sun Belt peers, Atlanta’s vacancy fared better than Austin (27.7 percent) and Houston (24.3 percent), but lagged Charlotte (16.4 percent).

Significant lease deals this year included a mix of renewals and new agreements. In September, T-Mobile renewed its 100,000-square-foot lease at CP Group and Farallon Capital Management’s One Ravinia.

In November, Jamestown signed a new tenant at its Ponce City Market. CONA Services agreed to occupy 49,000 square feet at the mixed-use property. The IT company will relocate from its 10 10th St. NE office, where it occupies 32,600 square feet.

Some larger deals took shape earlier this year, such as Building and Land Technology’s 180,000-square-foot agreement at Concourse Office Park in Sandy Springs, Ga. Newell Brands is the new tenant, set to move in by mid-2025.

New coworking firm enters Atlanta

In November, Atlanta had around 4.4 million square feet of shared office space, which was 2.1 percent of the market’s total rentable inventory. The coworking segment continued to steadily grow across the metro, with the share of coworking space being 20 basis points above the national figure. Compared to other Sun Belt markets, Atlanta outperformed Charlotte (1.9 percent), Houston (1.8 percent) and Austin (1.7 percent).

Last month, coworking provider e|spaces entered the Atlanta market. The company leased a 32,030-square-foot, full-floor space at Adventus Realty’s 1600 Parkwood Circle asset. Most of Atlanta’s flexible office is in suburban areas, and e|spaces’ first location is no exception, being in the Cumberland/Galleria submarket.

The post Atlanta Office Sector Shows Resilience appeared first on Commercial Property Executive.

Accesso Partners has acquired Sawgrass Lake Center, a 240,000-square-foot office building in Sunrise, Fla., a Fort Lauderdale submarket. American Realty Advisors sold the asset, according to CommercialEdge information, in a deal arranged by CBRE.

The property previously traded in March 2018, when Foundry Commercial sold it for $57.4 million—or $195.66 per square foot—the same source shows. American Realty Advisors took out a $43.8 million loan from Regions Bank for the acquisition.

Located at 13450 W. Sunrise Blvd., the LEED-certified building is some 18 miles from downtown Fort Lauderdale and the Fort Lauderdale-Hollywood International Airport. The property is also adjacent to Sawgrass Mills Center, a 2.3 million-square-foot shopping and dining destination.

READ ALSO: RCLCO Market Index Points to Optimism for 2025

The six-story building came online in 2001 and went through cosmetic renovations in 2017. The mid-rise features 3,000 square feet of retail space and floorplates ranging between 46,904 and 48,896 square feet. Amenities include a fitness center, cafe, tenant lounge, conference center and outdoor seating area. The almost 7-acre property also has a five-story parking garage.

Tenants at the Class A building include AT&T, GoVine Insurance, Watches of Switzerland and StevenDouglas.

CBRE Vice Chairman Christian Lee and Vice President Sean Kelly, along with Financial Analysts Tom Rappa and Matthew Lee, brokered the deal on behalf of the seller.

Office sector shows signs of improvement

The office sector is still undergoing transformation, due to the hybrid work model which demands flexibility and adaptability. Companies are expected to prioritize creating engaging, experience-rich environments that inspire creativity and foster connections among employees. This shift reflects the changing dynamics of the workforce and tenant expectations, emphasizing the importance of spaces that cater to diverse employee needs.

The forecast for 2025 also highlights a potential increase in office demand, particularly in sectors like law and finance. According to a Savills report, the legal sector leasing volume between the first and third quarter of last year increased by 29.9 percent compared to the same period of 2023.

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Glenstar Logistics has completed the first of five buildings at the $415 million, 290-acre Cherokee Commerce Center 85 in Gaffney, S.C. The speculative, cross-docked 550,520-square-foot building can be expanded to 1.3 million square feet.

Upon full buildout, the industrial park adjacent to Interstate 85 in upstate South Carolina’s Cherokee County industrial corridor will total up to 3.6 million square feet. Potential uses include warehousing and distribution, advanced manufacturing, food processing, assembly/light manufacturing and refrigeration/cold storage.

Glenstar Logistics, the industrial arm of Chicago-based Glenstar, is developing CCC-85 in partnership with Creek Lane Capital. The project was announced in the fall of 2022. In July 2023, the developers received the final approval for a tax incentive package from the Cherokee County Council.

READ ALSO: Industrial Settles After Supply Surge

The developer began vertical construction of the first building in August. CrossHarbor Capital Partners provided a $38.2 million construction loan in September 2023 for the first phase of the project.

The development team includes general contactor The Conlan Co., architecture firm Ware Malcomb and SeamonWhiteside as civil engineer.

A large South Carolina industrial park

The first building features 40-foot clear heights, 56-by-50-feet column spacing, 60-foot speed bays, up to 232 dock doors, four drive-in doors and flexible parking. The asset will be able to accommodate up to 200MW of power within three years.

The other four warehouses that will complete CCC-85 will range between 211,640 square feet and 1.7 million square feet, and will also feature 40-foot clear heights, 56-by-50-feet column spacing and 60-foot speed bays.

Located at the four-way Interstate 85/Highway 105 interchange, CCC-85 sits across I-85 from Boysen’s manufacturing plant, which supplies BMW’s manufacturing facility 31 miles away in Spartanburg, S.C. The park is also 35 miles from Inland Port Greer and some 50 miles from metro Charlotte, S.C. From CCC-85, tenants can reach more than 135 million consumers within a day’s drive, according to the developer.

Industrial momentum in Cherokee County

Vacancy in Cherokee County had decreased to 6.1 percent by the end of the third quarter of 2024, according to a Colliers industrial report. Colliers also noted that in-market tenants are beginning to trade older Class B and C buildings for Class A space.

There was an uptick in distribution and manufacturing users interested in leasing space in the new building, according to Brian Netzky, Glenstar Logistics managing principal. That came especially because of the propertyțs heavy power profile and water and sewer capacity. Netzky also said in prepared remarks that tenants have begun to make leasing commitments at a faster pace than earlier in 2024, and he expects that momentum to continue in 2025.

Recent Glenstar Logistics sale

In October, a joint venture between Glenstar Logistics and Columnar Investments sold Tri-County 75, an 818,000-square-foot industrial park in Fort Myers, Fla., to an affiliate of Walton Street Capital in a deal arranged by CBRE.

The developers had secured $97.5 million in financing from Square Mile Capital Management in 2022 for the four-building speculative park campus. At the time of the sale, the park was 95 percent leased.

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This is the REIT’s first purchase under its Structured Investment Program. Initially, the company had extended $15 million in mezzanine financing for the asset, which was fully repaid following the latest transaction.

The open-air shopping center came online in 2008 on some 41 acres, and was 97 percent leased at the time of the sale. Encompassing nine buildings, it is anchored by a Sprouts Farmers Market and shadow-anchored by a Costco Wholesale. The Markets at Town Center also features a mix of regional and national retailers such as Ulta Beauty, CVS Pharmacy, Five Below, REI, J.Crew, Ballard Designs, Sugar Factory, Nordstrom Rack, DXL Big & Tall, Gen Korean BBQ, Panda Express and Chipotle, among others.

READ ALSO: Unlocking the Sun Belt’s Retail Potential

Located at 4868 Town Center Parkway, the property is within Jacksonville’s Intracoastal West submarket. The Markets at Town Center serves approximately 192,000 individuals within a 5-mile radius, with the average household income of $95,000, according to Kimko. The property clocks in at more than four million annual visits, according to Placer.ai data quoted by the buyer.

Kimko’s extensive Jacksonville portfolio

Kimco owned six properties in the Jacksonville area, spanning around 1.5 million square feet, at the end of 2024.

In October, in another large move, Kimco purchased Waterford Lakes Town Center, a 976,000-square-foot grocery-anchored lifestyle center in Orlando, Fla., for $322 million. The company took on the responsibility of a $164 million mortgage.

Early last year, Kimco completed the acquisition of New York-based RPT Realty, in an all-stock transaction valued at $2 billion. The transaction encompassed 56 open-air centers, with 43 being wholly owned, amounting to 13.3 million square feet. A little later, Kimco also sold eight retail properties from this extensive portfolio to KPR Centers, totaling 1.5 million square feet, for $180 million.

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Provident Data Centers has entered into a joint venture with PowerHouse Data Centers for the development of a hyperscale campus in Grand Prairie, Texas. When complete, it will be one of the largest data center campuses in Texas and the U.S.

The multi-phase development will be designed as a shell campus with ample power sourcing that will meet the growing demand for data centers from industry operators in the Metroplex.

The partners intend to break ground on the 768-acre project in the second quarter of this year, according to the Dallas Business Journal. Phase One is set to generate some 500 megawatts of power, while the entire campus is expected to generate 1.8 gigawatts at full build-out.

READ ALSO: Are Data Centers Immune to CRE Market Forces?

This will be the second Metroplex data center development for PowerHouse. The company entered the market in May with a project developed in partnership with Harrison Street. The upcoming data center in Irving, Texas, will total approximately 1 million square feet and generate 200 megawatts.

Owned and operated by American Real Estate Partners, PowerHouse has 25.5 million square feet of data center space in various stages of development across six key markets. The portfolio totals more than 5.9 gigawatts.

Dallas-based Provident Data Centers has developed north of 50 projects in six states since its inception. Their campuses generate more than 3.8 gigawatts of power.

A hotspot for data centers

In the first half of 2024, the Metroplex had 637.5 megawatts in underway projects and 848 megawatts in operation, according to a Cushman & Wakefield data center report. The metro is one of the top five data center markets in the country, but more affordable than Northern Virginia or Silicon Valley.

One of the current developments is DataBank’s project in Red Oak, Texas. Coming online on 292 acres, the data center campus will total 480 megawatts across eight buildings at full build-out.

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Armada Hoffler has sold Nexton Square in Summerville, S.C., and Market at The Mill Creek in Mount Pleasant, S.C., both retail assets in the Charleston area, for $82 million.

The blended cap rate was in the low 6 percent range, for a profit margin of more than 20 percent above the initial development costs, according to the company. The dispositions enabled Armada to repay the Nexton Square mortgage and gain nearly $60 million in cash.

Armada had purchased Nexton Square from RealtyLink for $18.5 million back in 2020, according to CommercialEdge data.

READ ALSO: Unlocking the Sun Belt’s Retail Potential

Armada owns and manages a diverse portfolio of multifamily, office and retail assets across the Mid-Atlantic and Southeastern U.S. In one of its larger moves, in March 2023, the company paid $215 million for the office and retail components of The Interlock’s Phase One, a 9-acre, mixed-use development in Atlanta’s West Midtown submarket. 

A closer look

Completed in 2020, the 133,608-square-foot Nexton Square encompasses 13 buildings on some 16 acres. The open-air lifestyle center includes a mix of regional and national retailers including Fuji Sushi, Wok N Roll, Wild Birds Unlimited, Summerhouse Furniture, Sportsbook, Bold Fitness and Brighton Animal Hospital, among others.

Located at 101 Nexton Square Drive, the property is within Charleston’s Berkeley County submarket. Nexton Square serves more than 10,000 single-family and multifamily units, according to Armada, due to its location near a 4,500-acre master-planned community.

Anchored by a 50,000-square-foot Lowes Foods, the nearly 80,000-square-foot Market at Mill Creek came online in 2018. The tenant roster at the property also includes Starbucks, Fuji Sushi, Marco’s Pizza, Supercuts, Sea Island Urgent Care and Agaves Cantina.

The three-building property on some 12 acres is at 2100 Highway 41, in Mount Pleasant’s north area. According to InvenTrust Properties, Market at Mill Creek serves a population of more than 57,000 within a 5-mile radius, with the average household income at almost $180,000.

The post Armada Hoffler Sells 2 Retail Centers for $82M appeared first on Commercial Property Executive.

A $104 million loan for Phase One of Centro City’s 350,000-square-foot retail component was issued by Hudson Bay Capital. It is part of Miami-based developer Terra’s overall $291 million in permanent financing secured for the 38-acre mixed-use development.

The new financing will pay off the development’s existing construction loan, provided by Apollo Global Management and Mack Real Estate Credit Strategies in 2022.

Centro City includes 1,200 market-rate residential apartments, green space for residents, a newly reimagined shopping center with lifestyle-oriented retail and restaurants, a Class A office building and a Mater Academy K-8 Charter School.

Connected to the community

“At Terra, we prioritize creating spaces that offer not just accessibility but real connectivity to the vibrant heart of their communities,” David Martin, CEO of Terra, told Commercial Property Executive.

“Centro City exemplifies this vision, strategically located in the heart of West Little Havana, where residents and businesses can tap into Miami’s key employment centers, cultural landmarks and transportation corridors,” he added.

“This is part of a broader strategy we’ve applied across South Florida, from Coconut Grove’s Grove Central to our upcoming Upland Park development, which will redefine mobility and living in West Miami-Dade. Our commitment is to build more than just developments; we create dynamic, sustainable ecosystems that enhance communities and drive economic growth.”

READ ALSO: Retail Construction Starts Surged in H1 2024

Target, Ross Dress for Less, DD’s, Fresco y Mas, Walgreens and Bank of America are among the tenants for the 95 percent-leased property in the center of Miami-Dade County, just west of Little Havana.

Walker & Dunlop’s Keith Kurland and Gangemi Law Group represented Terra in the transactions. Holland & Knight Partners Joe Dewey, Brett Holland, Shawn Amuial and Shaina Kamen, together with Associate Brian Piper, represented Hudson Bay Capital.

“Mixed-use multifamily developments featuring retail in Miami continue to garner interest from residents, investors, and lenders,” said Michael J. Romer, co-founder & managing partner of Romer Debbas LLP. “This most recent financing is a positive sign as lenders begin to awake from a relatively dormant market cautiously. The combination of multifamily, retail and warm weather is the magic formula entering 2025.”

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Garden Commercial has acquired the 83,800-square-foot Plaza Del Mar, an upscale grocery-anchored retail property located in Manalapan, Fla. for an unspecified price. The shopping center is at 250 S. Ocean Blvd. in Palm Beach County, directly across from Eau Palm Beach Resort & Spa.

The deal represents a further expansion in Florida for New Jersey-based Garden Commercial, which has many properties in its home state. The company currently owns and manages more than 25 million square feet of retail and office space.

The seller was a joint venture between Kitson & Partners and Evergreen Investment Advisors. Locally based Kitson, which owns about 1.5 million square feet of retail space as well as residential and other commercial properties, developed the shopping center. The company is also known for its sustainable developments in the state.

Plaza Del Mar features a Publix grocery store and eateries such as Art Basil Modern Italian Cuisine, John G’s, Thaikyo Asian Cuisine and The Ice Cream Club. Apparel store tenants include Chico’s, Evelyn & Arthur and J. McLaughlin, among others. Addicted Chic is set to open later this year.

READ ALSO: Retail Space in Focus: What’s Driving the Sector’s Growth?

Service providers at the property include a dermatologist, bank, hair salon, nail salon, residential real estate specialist Illustrated Properties and Chabad of South Palm Beach, which holds social, educational, and holiday programs and activities. About 8,000 square feet of the property is vacant.

Scott Loventhal and Michael Gartenberg served as Garden Commercial’s in-house representatives for the acquisition. CBRE’s National Retail Partners team in Florida, led by Executive Vice Presidents Casey Rosen and Dennis Carson, as well as Associate Vice Presidents Sriram Rajan and Michael Etemad, represented the seller.

Palm Beach retail slightly weaker in Q3

Palm Beach County experienced a modest rise in retail vacancy during the third quarter of 2024, rising to 3.9 percent vacant, a 30-basis-point increase quarter-over-quarter, according to Colliers. A year earlier, the vacancy rate was 3.4 percent. The uptick was spurred by negative net absorption of 156,600 square feet during the same period.

Even so, the market is expected to remain supply-constrained, Colliers reports, as few tenants move out and little new retail space is completed in the county. Only 32,400 square feet of new retail space came online in Palm Beach County during Q3 2024, compared with 39,600 square feet during the same quarter a year earlier.

However, development activity in South Florida (including retail) might be stimulated in 2025 by the coming rate-cutting cycle. The Colliers report states that investors could be more keen on the property type as well, especially grocery-anchored assets, which have proven resilient, with stable rents and occupancy rates, because of the essential nature of the goods they sell.

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Wicker Park acquired the shopping center for $53.5 million back in 2019, according to CommercialEdge data. The property became subject to a $40 million loan originated by Goldman Sachs.

Completed in 1986, the super-regional shopping center comprises two buildings situated on a 31-acre property. The property’s tenants have an average tenure that exceeds 17 years.

Ashley HomeStore, American Signature Furniture, DSW, World Market, Hobby Town, Bassett Furniture, Natuzzi and BrandsMart anchor the property. Cobb Place also features a diverse mix of retailers including Petland, Korean BBQ, Metro PCs, Weight Watchers and Wing Factory, among others.

READ ALSO: Unwrapping Holiday Retail Trends

Located at 840 Ernest W. Barrett Parkway, the shopping center is within Atlanta’s Marietta – Kennesaw submarket. Cobb Place is situated along Interstate 75, one of Georgia’s busiest corridors, and is the state’s second most visited retail area. It is near Kennesaw State University, Cobb County International Airport and Dobbins Air Force Base.

Senior Managing Director Jim Hamilton, Managing Director Brad Buchanan, Director Andrew Kahn and Analyst Anton Serafini led JLL’s Investment and Sales Advisory team working on behalf of the seller.

The same JLL team has recently brokered the sale of Northlake Square, a 82,578-square-foot retail center in Tucker, Ga. Barnhart Guess sold the ALDI-anchored property to Greenberg Gibbons for $17.3 million.

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The seven-story waterfront project at 9551 E. Bay Harbor Drive reportedly will be both the only trophy office building on Bay Harbor Islands and Miami’s only Class A office building offering private boat access. It will feature 75,000 square feet of “ultra-luxury office space” and a ground-floor waterfront restaurant, in a location across from the Bal Harbor Shops.

3650 Capital provided the financing. Construction will start at the end of this month and is scheduled for completion in late 2026. Leasing will be handled by Cushman & Wakefield.

The developers could not be reached for further information.

The project is driven by an influx of high-net-worth residents to Bay Harbor Islands and the resulting need for luxury office space for companies supporting this migration, Irwin Tauber, co-founder & CEO of Taubco, said in a company statement.

READ ALSO: When Office Meets Hospitality

The ground-floor restaurant reportedly will offer in-suite dining service for building tenants, while the building will feature private boat slip access and dockage, along with a rooftop venue.

The building has been designed by Miami-based architect Luis Revuelta, known for multiple luxury buildings in Miami.

Cushman & Wakefield Vice Chair Brian Gale, with Executive Managing Directors Andrew Trench and Ryan Holtzman, and Senior Director Edward Quinon, will oversee office leasing efforts.

Scanty preleasing

Overall vacancy in the Miami-Dade office market has risen by 80 basis points year-over-year, driven by the recent delivery of 830 Brickell, according to a third-quarter report from Cushman & Wakefield. The 556,000-square-foot building was 93 percent preleased, but the new tenants are still building out their respective spaces.

Adjusted for that blip, the overall vacancy would be about 15.1 percent, although a total of seven office projects with a combined 837,000 square feet are underway, with only 14 percent preleased. Net absorption nonetheless remains positive, Cushman & Wakefield reported.

In July, CMC Group nailed down a $69.9 million refinance for its 4000 Ponce, a 190,000-square-foot office building in the Miami suburb of Coral Gables, Fla. The floating-rate, five-year loan was provided by City National Bank of Florida and arranged by a JLL team.

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COFE Properties has paid $48.3 million for a two-asset industrial portfolio totaling 307,492 square feet in Charleston, S.C. Citimark previously owned the properties, according to CommercialEdge data.

Nuveen issued a five-year, fixed-rate, interest-only acquisition note of $29 million. CBRE arranged the financing on behalf of COFE.

Citimark purchased the duo in 2021 for $25 million, and according to CommercialEdge, First Financial Bank originated a $19 million acquisition loan set to mature in 2028. Simmons Realty was the seller then.

The two properties are less than 1 mile from Interstate 26 and about 2 miles from one another. Charleston International Airport and the Port of Charleston are roughly 5 and 11 miles away, respectively.

READ ALSO: You’ve Survived Till 2025. Now What?

The facility at 4750-4760 Goer Drive, which was completed in 1979, is 246,852 square feet and features 24-foot clear heights and truck courts with a depth of 90 to 128 feet. The College of Charleston, Beers Millwork and American Freight are among the 11 tenants leasing the asset.

Built in 1995, the 60,640-square-foot property at 4275 Arco Lane has 16-foot clear heights and 75- to 110-foot truck court depths, as well as a 20 percent office finish. Seven tenants, including Carrier Enterprises, Perfect 10 Distribution and United Refrigeration, lease the building.

CBRE Vice Chairmen Brian Linnihan and Mike Ryan, as well as Senior Vice President Richard Henry and Director JP Cordeiro, represented COFE Properties in the financing proceedings.

Industrial sales decelerate in Charleston

The industrial investment volume in metro Charleston clocked in at roughly $285 million during the first 11 months of the year, according to CommercialEdge data. Last year’s figure for the same interval was substantially higher, landing at nearly $500 million.

Assets traded at an average of about $80 per square foot year-to-date through November, data from the same source shows. That was below the national average of $128 per square foot.

Just last month, another industrial asset changed hands in Greater Charleston. Stockbridge purchased Building D at Camp Hall Commerce Center Capus 4 from Portman Industrial and Rockpoint. The property in Ridgeville, S.C., spans 1.2 million square feet.

The post COFE Properties Buys Charleston Portfolio for $48M appeared first on Commercial Property Executive.

Shoppes of Wilton Manors, located at 2200-2292 Wilton Drive, was built in 1958 and expanded in 1985. This is the second time Stiles has owned Shoppes of Wilton Manors. The company purchased it back in 2004 and sold it in 2007 after making improvements.

This time around, Stiles is planning to renovate the property starting early next year, focusing on improvements to the façade, walkways, landscaping and parking areas. The company will use several of its integrated real estate services, including development, property management and tenant project management services, to execute the transformation.

READ ALSO: Unwrapping Holiday Retail Trends

The property was 84 percent occupied before the sale, according to CommercialEdge data. There are currently 12 tenants, none of whose leases expire over the next 12 months. The tenant mix includes restaurants, fashion and other retailers. Average annual household income for the surrounding Zip code (33305) is above $138,000.

The deal fits into Stiles’ acquisition strategy, which seeks mid- to large-sized retail centers in infill Florida locations as value-add and repositioning plays, according to a company statement.

JLL’s Jorge Portela, Maurice Habif and Danny Finkle represented the seller in the transaction. Financing for the acquisition and redevelopment plan came from Synovus Bank.

Besides hunting retail deals, Stiles has been an active developer recently as well. Earlier this year, a joint venture between Stiles and Shorenstein Properties completed 110 East, a 23-story, 370,000-square-foot office building in Charlotte, N.C.

Fort Lauderdale Retail Market Still Tight

Fort Lauderdale has experienced a slowdown in retail leasing activity over the past 12 months, according to Matthews Real Estate Investment Service, putting the local retail vacancy rate at a still-tight 3.7 percent. Natural population growth, along with the post-pandemic return of tourism to the area, have combined to boost retail expenditure.

The upshot of recent economic trends has translated into significant rent increases for retail space in the area, with annual growth of 2.5 percent in mid-2024, although this has decreased from a peak of a 10.9 percent rate at the end of 2022, Matthews noted.

During the period from 2020 to 2023, around 1 million square feet of retail was delivered to the Fort Lauderdale market, Matthews reported. Only a little over 190,000 square feet is now in the development pipeline.

The post Stiles Buys Metro Miami Retail Center appeared first on Commercial Property Executive.

Greenberg Gibbons has purchased Northlake Square, a 82,578-square-foot retail center in Tucker, Ga., for $17.3 million. Barnhart Guess sold the asset, in a transaction brokered by JLL. Mutual of Omaha Insurance Co. provided a $10.8 million loan for the acquisition, according to CommercialEdge data.

Completed in 1988 at 4135 Lavista Road, Northlake Square encompasses two one-story buildings on some 6 acres. The grocery-anchored retail center has an average tenure of nearly 20 years.

Anchored by ALDI, Best Buy and Mellow Mushroom, the property has a diverse mix of retailers such as Great Clips, The Georgia Clinic, Wings 101, Fast Signs, My Beauty Unlimited and Lucky Key, among others. The retail center was 98 percent leased at the time of sale.

READ ALSO: What’s Ahead for Retail Investment?

Located some 13 miles from downtown Atlanta, Northlake Square is near Interstate 285, in an area where the daily traffic count reaches approximately 200,000 vehicles, according to JLL. The shopping center serves more than 300,000 individuals within a 5-mile radius.

JLL Senior Managing Director Jim Hamilton, Managing Director Brad Buchanan and Director Andrew Kahn led the Capital Markets Investment and Sales Advisory team which worked on behalf of the seller.

Strong investment across Atlanta’s retail market

Greater Atlanta’s retail market saw strong investment activity this year. More than 8 million square feet of retail space changed hands in the metro for approximately $1.55 billion, according to CommercialEdge data.

The largest deal closed in February, when 5Rivers CRE acquired Fayette Pavilion, Georgia’s largest open-air retail center, for $134 million. Nuveen Real Estate sold the 1.1 million-square-foot asset.

In June, Big V Property Group and Equity Street Capital purchased Johns Creek Town Center, a 303,297-square-foot community shopping center in Suwanee, Ga., from SITE Centers. The transaction marked Big V’s fifth and its largest acquisition in the state.

The post Greenberg Gibbons Buys Atlanta Shopping Center appeared first on Commercial Property Executive.

Located on 89 acres at 315 S. Rutherford Blvd., the first phase of MTIC will consist of a rear-load, 234,588-square-foot building and a front-load 149,150-square-foot building. Both will feature 36-foot clear heights. Building 1 will also have up to 56 dock doors and 188 parking spaces, while Building 4 will include up to 40 dock doors and 177 parking spaces.

A timetable for construction of the final two assets is not available but Building 2 is expected to be a 216,405-square-foot rear-load building and Building 3 is planned as a 103,777-square-foot rear-load building.

The buildings can be used by single or multiple tenants. The developers anticipate receiving inquiries from a wide variety of potential tenants, from local warehousing users to larger, more regional distribution users. Major companies in the area include Lineage Logistics, FedEx, Americold Logistics and Amazon.

Close to Nashville and highway

MTIC will be situated within Nashville’s primary core Interstate 24 submarket and about 36 miles southeast of downtown Nashville. The property is strategically positioned to serve both downtown Nashville and the broader regional area due to its proximity to I-24.

Ryan Dodge, a partner and managing director at New York-based real estate finance and management firm PCCP, said in prepared remarks the I-24 corridor has been experiencing high user demand and limited supply due to high barriers to entry. Noting the Greater Nashville area is projected to continue seeing an in-migration of population and wealth, Dodge said they expect the industrial sector in the region to remain robust.

READ ALSO: Automation and AI Shape Future Industrial Demand

The Nashville industrial market had 224 million square feet of inventory and a 3.7 percent vacancy rate at the end of the third quarter, according to the developers. JLL reported in its third-quarter 2024 market report the Nashville market had 4.7 million square feet of speculative development under construction, with tenant demand at nearly 6 million square feet. That should lead to rising rents. With positive macroeconomic conditions in the Southeast region, JLL expects Nashville to continue to be viewed as a highly desirable market for tenants and investors.

William Sisk, Brett Wallach and John Zeffrey of Lee & Associates in Nashville are handling leasing for the property owners.

Earlier Nashville JV

PCCP and DRG have worked together in Tennessee in the past. In October 2022, they announced the formation of a joint venture to build Beechcroft Industrial Park, a speculative three-building, 815,530-square-foot project in Spring Hill, Tenn., near a major General Motors manufacturing plant. Beechcroft Industrial Park includes a 228,580-square-foot rear-loading building, a 244,950-square-foot rear-loading building and a 342,000-square-foot cross-docked building. The 63-acre site is 38 miles south of downtown Nashville.

More PCCP industrial projects

In November, PCCP formed a joint venture with CRG to develop The Cubes at Alpha, a 575,900-square-foot industrial park on a 37-acre site in Alpha, N.J. Delivery is expected by the third quarter of 2025. The project will be aimed at e-commerce, distribution, 3PL and manufacturing uses. The Cubes at Alpha will have two buildings measuring 270,900 square feet and 305,000 square feet. Located near Interstate 78, the property is about 24 miles southwest of Allentown, Pa., and about 60 miles east of The Port Authority of New York & New Jersey.

In June, PCCP teamed with another joint venture partner, BBX Logistics Properties, for The Park at Delray, a 40-acre industrial campus in Delray Beach, Fla. Phase one of the project includes the development of a 200,000-square-foot building. Upon completion, it will feature three buildings totaling more than 670,000 square feet.

The post PCCP, Distribution Realty Group Launch Nashville Project appeared first on Commercial Property Executive.

CBRE’s John Schlesinger represented the tenant, and his colleagues Jeff Keppen and Nicole Goldsmith represented the landlord.

This makes for 170,000 square feet leased at the building in the past six months, including four new tenants, one renewal and two expansions. Bank of America Plaza is renowned for being the tallest building in the Southeast, with nearly 1.4 million square feet of Class A workspace.

This deal extends the sector’s overall momentum this year after last year’s leasing activity met pre-pandemic levels, according to Savills.

So far this year in Atlanta, Avison Young reported that only 12 percent of law firms that have signed deals are downsizing their space, 23 percent are expanding and 26 percent are maintaining their original square footage when renewing their lease. The remaining 39 percent comprises new deals, which include new tenants and locations.

This trend is anticipated to continue since law firms are a heavy office-using industry—the third-busiest sector according to Avison Young’s Office Busyness Index.

While a couple of tenants announced major downsizes within Atlanta, this breakdown and comparison shows that law firms, whether they have an Atlanta presence or are new to the area, are currently active in the market and making moves on committing to office space, according to Avison Young’s analysts.

“Atlanta has seen an influx of new-to-market and existing law firms expanding their presence as the city continues to capitalize on its pandemic-induced population boom,” Rick Nash, principal, consulting & advisory tenant representation occupier services, Avison Young, Atlanta, told Commercial Property Executive.

The region benefits from a strong talent pipeline with many universities and law schools, Nash added. “Peachtree Street in Midtown has become a hotbed for office leasing activity, including law firms, given the multitude of residential, entertainment and dining options as employers look to recruit talent and encourage employees to return to the office.”

Atlanta’s strong office leasing activity

Cushman & Wakefield reiterated Atlanta’s stellar second half, reporting that the market saw 226,500 square feet of leasing activity in the third quarter, higher than the first two quarters combined.

Atlanta’s legal leasing levels in the first half of 2024 were 41 percent lower year-over-year compared to 2023. However, strong leasing activity from firms in the market, along with Morris, Manning & Martin’s 104,000 sf relocation—the largest lease nationally in the third quarter of 2024—has tipped the scales, placing Atlanta’s legal leasing activity 29 percent higher year-over-year than it was through the third quarter of 2023.

Despite the shift toward flexible work arrangements, prestigious law firms continue to commit to substantial office spaces in prime locations, recognizing the importance of in-person collaboration and the need for secure environments to handle sensitive information.

READ ALSO: How Neurodivergent-Friendly Office Design Can Benefit Everyone

There is also a growing emphasis on workplace amenities and experience in the legal sector, with features like state-of-the-art fitness clubs, food halls and modern conference centers becoming increasingly essential in attracting and retaining top talent, according to Edith Gonzalez, managing director, professional services, JLL Work Dynamics.

She told CPE that the choice of location in Midtown Atlanta, near Georgia Tech and numerous Fortune 500 companies, reflects another key trend: law firms are gravitating toward mixed-use, amenity-rich areas that offer easy access to clients, talent pools and innovation hubs.

“This strategic positioning is crucial for firms aiming to stay competitive in the legal services market,” Gonzalez said. “The deal [emphasizes] the ongoing importance of prime office space for law firms while showcasing the evolving expectations around workplace amenities and location—a trend likely to continue in major legal markets across the country.”

Key renewal at Citigroup Center

Also this month, Kluger, Kaplan, Silverman, Katzen, Levine, P.L. announced it has renewed its commitment to Citigroup Center in downtown Miami, relocating to a new premier 17,757-square-foot office space within the 34-story, Class A office tower.

Colliers Vice Chair Stephen Rutchik represented the long-term tenant in the lease renewal. JLL’s Steven Hurwitz, Doug Okun and Madeline Fine represented the landlords, Monarch Alternative Capital, Tourmaline Capital Partners and CP Group, in the transaction.

“Kluger Kaplan’s strategic relocation within Citigroup Center reflects a broader trend of law firms prioritizing workspace quality and employee experience,” Rutchik told CPE.

Their move to a new office allows them to create a state-of-the-art workspace with a modern layout that can accommodate their growing team and enhance collaboration, Rutchik explained. “The firm’s choice to stay in the recently renovated Class A office tower with stunning bay views and premier amenities demonstrates how top-tier law firms use their physical space as a competitive recruitment and client engagement tool.”

Opting for relocation

Many law firms are opting for relocation, according to Peter Billmeyer, SIOR, co-founder & CEO of Bespoke Commercial Real Estate and president of the SIOR Chicago Chapter.

Law firms, like most companies, have had to adapt to a post-COVID world, and what was an acceptable workplace no longer is and likely will never be again, according to Billmeyer.

“We are seeing a major flight to quality, with some old-school ‘White-Shoe’ firms downsizing and settling into their hybrid work strategies. At the same time, some upstarts are growing dramatically.”

It is refreshing to see law firm leaders putting their cultures and teams before their P&L, Billmeyer observed. “Old and new firms deserve great credit for evolving, doing more with less and being committed to a people-focused work environment. We can only hope that leads to a higher quality of life and more reasonable hourly rates.”

The post CP Group Signs Major Law Firm to Atlanta’s Tallest Tower appeared first on Commercial Property Executive.

RCG Ventures has acquired Pinnacle Nord du Lac, a 215,058-square-foot retail center in Covington, La., for $27 million. Cypress Equities sold the property after eight years of ownership, according to CommercialEdge data. JLL represented the former owner and procured the buyer.

The transaction came on the heels of another RCG purchase. A few days ago, the firm paid nearly $26 million for a 167,000-square-foot shopping center in Troy, Mich.

Completed in 2010 on a 47-acre site, Pinnacle Nord du Lac was 96 percent leased at the time of sale. The tenant roster includes Hobby Lobby, Academy Sports & Outdoors and Petco.

A year after purchasing the property, Cypress Equities began a 94,500-square-foot expansion project, adding three more buildings on its west side. The shopping center serves a community with average household incomes of $140,000.

Pinnacle Nord du Lac is at 6102 Pinnacle Parkway, just off Interstate 12, in an area transited by 55,000 cars daily. Across the street, a newly constructed Costco and a Kohl’s shadow-anchor the property. Downtown New Orleans is some 40 miles south.

Senior Managing Directors Jim Hamilton and Ryan West, together with Managing Director Bran Buchanan and Vice President Andrew Michols, led the JLL Capital Markets Investment and Sales Advisory team that arranged the deal.

The post RCG Ventures Continues Buying Spree appeared first on Commercial Property Executive.

Terry Commercial Realty intends to develop The Gateway, a 40,000-square-foot restaurant and retail property in the exurban Atlanta town of Jasper, Ga. Plans are still in the early stages, with permitting still ahead.

The property will be part of a master-planned community with about 400 residential units within walking distance of its commercial buildings. All residences are slated for completion before the opening of The Gateway.

Initial renderings focus on a common area and green space that will be flanked by an anchor restaurant on one side and a food hall on the other. Designed to have a town-square vibe, the common area could house a wide variety of events, from morning yoga and cornhole tournaments to live music, Dave Terry, president & founder of TCR, said in prepared remarks.

READ ALSO: Retail’s Big Space Race

Evan Lockwood at Wilson Hutchison Realty, the project’s leasing agent, envisions such tenants as coffee shops, pizzerias, boutique retail and coworking spaces. The locally based TCR itself dates from late 2022, with a focus on development and redevelopment efforts in Pickens County.

The property will be off the main road through the area, Georgia State Route 515, which connects northern Georgia’s mountainous region with the outer suburbs of Atlanta. Jasper, seat of Pickens County, is in the northern reaches of the Atlanta MSA.

Atlanta retail in demand

The greater Atlanta retail market is tight, with a vacancy rate of 3.7 percent in the third quarter of this year, according to a Colliers report. The rate witnessed was up 30 basis points over the year, but still remained below the market’s five-year average by 50 basis points.

Though demand is there, supply continued to grow at a relatively slow pace. The market’s new deliveries totaled 230,000 square feet in Q3, barely above half of the square footage that came online same time last year.

Meanwhile, Atlanta’s retail development pipeline reached an all-time low at 800,000 square feet. During the third quarter of 2023, 1.9 million square feet were underway.

The post Terry Commercial Eyes Greater Atlanta Retail Development appeared first on Commercial Property Executive.

TA Realty has purchased Ironwood Commerce Center, a four-building industrial park totaling 505,436 square feet in Opa-Locka, Fla., outside Miami. Link Logistics previously owned the asset, according to CommercialEdge data. CBRE brokered the deal on behalf of the seller.

Completed in 2022, Ironwood Commerce Center includes facilities with 32-foot clear heights, building depths ranging from 125 to 195 feet and 54-foot column spacing.

The property also features single and shared truck courts measuring between 120 and 180 feet and a combined 492 parking spaces. The industrial campus was 65 percent leased at closing.

READ ALSO: Florida Industrial Still Hasn’t Run Out of Gas

Located at 12700 NW LeJeune Road, the 28-acre park is less than 2 miles from the Miami-Opa Locka Executive Airport, while the Miami International Airport is about 8 miles south. The Golden Glades Interchange project—which is set to construct 32 new bridges to bolster regional mobility—is roughly 5 miles away.

The property is also across the road from Ironwood Commerce Center Phase Two, a $90 million, six-facility industrial development encompassing 740,000 square feet. Link Logistics broke ground on the project rising on the site of the former Opa-Locka Hialeah Flea Market last year.

The CBRE crew that represented the seller included Vice Chairmen Jose Antonio Lobón, Frank Fallon and Trey Barry, as well as Vice President Royce Rose, among others.

Miami’s resilient industrial scene

Miami’s industrial investment volume witnessed increased activity during the first three quarters of the year, according to a Transwestern report. Sales totaled $342.1 million, topping the figure registered during the same period of 2023 by $62 million.

The market’s industrial vacancy rate stood at 5.0 percent in September, marking a 250-basis-point increase year-over-year, the same source shows. The index still remained 120 basis points below the U.S. average.

In one of the more significant transactions of the nine-month interval, Tishman Speyer made its first acquisition in the South Florida industrial market. The firm purchased a two-building campus encompassing 256,000 square feet in Pompano Beach.

Another important deal for the market closed last month, when Blackstone sold a 1.4 million-square-foot portfolio to Longpoint Partners for $331.3 million. The collection included 26 facilities, of which more than a third were in Miami-Dade County.

The post TA Realty Buys Metro Miami Industrial Park appeared first on Commercial Property Executive.

SouthState Bank has signed a long-term, 87,000-square-foot lease at Prominence Tower in Atlanta. New York Life Real Estate Investors owns the 433,000-square-foot office building.

Part of the deal involves SouthState Bank receiving top-of-building naming rights, as the company is now the largest tenant at the property.

Partners Real Estate’s Aileen Almassy and Andy Sumlin represented the owner, while JLL’s Josh Hirsh and Patrick Baughman worked on behalf of the tenant.

The Atlanta office market had a 17.8 percent vacancy rate in October, according to a recent CommercialEdge report. While 160 basis points lower than the national rate, the index was up by 80 basis points over the year.

LEED Gold-certified office tower

NYL Real Estate Investors acquired Prominence Tower in December 2018 from Crocker Partners—now CP Group—for $166 million, according to CommercialEdge data. A five-year, $86.6 million loan originated by Equitable financed the transaction.

Located at 3475 Piedmont Road NE in the Buckhead district, the Class A property rising 19 stories has average floorplates of 24,000 square feet. During the pandemic, the ownership invested $8 million in renovations and, in 2020, Prominence Tower received the LEED Gold and Wired Platinum certifications.

Property amenities currently feature a conference facility, lobby coffee bar, fitness center and bike storage room, as well as a seven-level parking garage attached to the main building. The tenant roster includes GE Digital, Jones & Kolb, Waypoint Residential, Prophet and NetRoadshow Inc.

The office building is some 9 miles from downtown Atlanta, within walking distance of many restaurants, shops and hotels. Buckhead MARTA station is less than 1 mile away; Georgia State Routes 141 and 400 are also nearby.

The post Bank Leases 87 KSF at Atlanta Office Tower appeared first on Commercial Property Executive.

Regus has fully leased 429 Lenox, a 45,789-square-foot Class A flex office building in Miami Beach, Fla. The lease covers more than 10 years, according to the Commercial Observer. 

Colliers Vice Chair Stephen Rutchik and Vice President Ana Paula worked on behalf of the landlords, Azora Exan, while JLL Executive Vice President Adam Bernstein represented Regus in the transaction. 

Azora Exan acquired the property at 429 Lenox Ave. in 2022 from Goddard Investment Group for $37 million, with the help of a 10-year $19 million permanent loan originated by Abanca Corporacion Bancaria, according to CommercialEdge data. 

WeWork, the building’s previous tenant, closed its flex office location in May. 

Originally designed by Kobi Karp, 429 Lenox was built in 1949 and underwent cosmetic renovations in 2000. The property features a fitness center and a rooftop deck. The five-story office building is divided into three floors of shared workspaces and private offices and two levels of parking. The new coworking location will function under Regus’ SPACES brand. 

Located in Miami’s South Beach neighborhood, the property is just off Florida State Road 907, which connects the office building to downtown Miami, some 6 miles west. Major thoroughfares in the area also include interstates 395, 95 and 195. The flex office is across the street from the Fifth & Alton shopping center, anchored by Target and T.J. Maxx.

Demand for flexible workspaces in Miami Beach continues to rise. The office market remains competitive, with an overall vacancy rate of 8.7 percent in the third quarter, and 340,298 square feet of new construction underway.

The post Regus Inks Full-Building Lease in Miami Beach appeared first on Commercial Property Executive.

Foxfield has acquired a 169,252-square-foot industrial building in Duluth, Ga., within Atlanta’s Northeast submarket.

The property changed hands for $19 million from seller Barco, according to CommercialEdge. The same source shows that the new ownership also secured a $8.6 million acquisition loan from Aegon Insurance Co., with a maturity date set for 2031.

JLL and Hailey Realty Co. worked on behalf of the seller. The deal was a sale-leaseback agreement, with Barco continuing to fully occupy the space under a six-year, triple-net lease.

Foxfield expanded in the Southeast region with this deal and also marked the 14th acquisition made through its Foxfield Open-End Fund, that opened in 2020 and has been targeting fully leased Class A and B industrial and flex/R&D assets.

The industrial facility came online in 1998 and is at 3059 Premiere Parkway. The property includes 24-foot clear heights, front-load configuration, seven dock-high doors, two drive-in doors and ample parking space.

The 12-acre asset is close to Interstate 85 and U.S. Route 23, allowing easy access to major transportation routs in the Atlanta region. DeKalb-Peachtree Airport is 19 miles from the facility, while Atlanta is 28 miles away and Hartsfield-Jackson Atlanta International Airport is within 40 miles.

Senior Managing Directors Dennis Mitchell, Matt Wirth and Britton Burdette, together with Director Jim Freeman with JLL’s Investment Sales and Advisory team negotiated on behalf of the seller. Hailey Realty Co.’s Executive Vice President Howard Boyd and Vice President John Crawford also provided assistance.

Atlanta industrial metro among the best in the U.S.

The industrial real estate investment volume in metro Atlanta reached nearly $2 billion as of October, according to a recent CommercialEdge report. The volume put Atlanta among the top 10 best-performing industrial markets in the U.S. Industrial properties traded at an average sale price of $116 per square foot, below the national average of $129 per square foot, while in-place rents reached $6.06 per square foot, marking a 9 percent year-over-year increase.

In October, Faropoint purchased two light-industrial properties in Doraville, Ga. and Morrow, Ga. The assets are totaling some 253,500 square feet of space and traded from Ivanhoé Cambridge, with the assistance of the same JLL team.

Another notable deal in Atlanta was Adler Real Estate’s $49.6 million acquisition of a four-building industrial campus that was 97 percent leased at the time of the sale. JLL represented the seller and helped in securing the acquisition financing.

The post Foxfield Expands in Atlanta With $19M Purchase appeared first on Commercial Property Executive.

Amgen will invest $1 billion to expand its drug manufacturing operation in Holly Springs, N.C., adding a second multi-drug substance plant at the site.

The company initially invested $550 million to build a 350,000-square-foot facility in 2021. Construction began in March 2022 and, according to a recent article in the Triangle Business Journal, that plant will be operational in 2026.

Amgen aims to bolster its global manufacturing efforts, maximizing output, and the Holly Springs plant will play a central part in that strategy, CFO Peter Griffith told analysts at Citi’s 2024 Global Healthcare Conference in Miami, as reported by WRAL News. The company focuses its research on inflammation, oncology, rare diseases and general medicine.

READ ALSO: Why the Life Sciences Boom Is Not Likely to Bust

North Carolina’s Economic Investment Committee approved a Job Development Investment Grant that will reimburse Amgen up to $4.9 million yearly across the grant’s 12-year duration. The project is expected to grow the state’s economy by $3.6 billion throughout that period. When fully operational, more than 720 jobs will be generated across both facilities.

The firm owns nearly 109 acres at 4130 Friendship Road, according to Wake County records, and the two plants are slated for delivery at that site. The property is part of the 650-acre CaMP Helix, a master-planned manufacturing and life science park located some 25 miles southwest of downtown Raleigh, N.C.

Life science development in Raleigh-Durham

More than 650 life science companies operate in the Research Triangle Region, and within the past three years, firms have invested some $4 billion in life science projects throughout Wake County.

One such project is Trinity Capital Advisors and Starwood Capital Group’s Spark LS, which is set to comprise 1.5 million square feet of life science and retail upon delivery. Phase one, encompassing 525,000 square feet, debuted last year.  

And, this summer, Japan-based Kyowa Kirin earmarked $530 million for a 171,700-square-foot facility in Sanford, N.C., that broke ground in September. When operational in 2027, the plant will aid Kirin’s development and production of biological therapies for patients with rare illnesses.

The post Amgen Eyes $1B North Carolina Expansion appeared first on Commercial Property Executive.

INDUS Realty Trust has purchased a majority interest in a 4.3 million-square-foot industrial portfolio, comprising 21 buildings in Charlotte, N.C., and Charleston, S.C. Childress Klein owns The Carolinas Portfolio, now valued at $575 million.

The acquisition recapitalizes about one third of CK’s 13.2 million-square-foot logistics inventory. The firm retained a minority ownership stake and will continue to manage and lease the facilities.

Eastdil Secured worked on behalf of Childress Klein in arranging the transaction.

READ ALSO: ‘Big D’ Industrial Stays on Top

The Carolinas Portfolio comprises 16 buildings in Charlotte and five in Charleston and includes last-mile, regional and bulk logistics properties. The buildings and individual tenant suites average 205,000 and 78,000 square feet, respectively, and were 94 percent leased at the time of the deal. The assets carry a weighted average age of 13 years.

One of the properties in the portfolio is Nevada Business Park, a three-building campus totaling 319,500 square feet. It features rear- front-loading configurations. The almost 32-acre park came online last year and is at 2011, 2101 and 2121 Nevada Blvd.

INDUS’ recent industrial expansion

INDUS currently owns or has majority ownership in industrial properties and developments totaling 13.6 million square feet. The company’s assets are in North Carolina, South Carolina, Connecticut, Pennsylvania, Florida, Georgia, Arizona and Tennessee.

Last month, INDUS entered the Phoenix market with the acquisition of Phoenix Airport Logistics, a 393,484-square-foot warehouse for $72.4 million. The building came online in 2016 and, at the time of sale, was leased to five tenants.

Earlier this year, the firm also acquired Primark at Imeson Park, a 550,243-square-foot facility in Jacksonville, Fla., from VanTrust Real Estate. Primark uses the facility as its second distribution center in the U.S. and the first in the state.

The post INDUS Acquires Stake in 4.3 MSF Industrial Portfolio appeared first on Commercial Property Executive.

Collectively, the property is known as Crossroads Corporate Park, including Building I (79,100 square feet), Building II (98,400 square feet) and Building III (121,500 square feet). The properties, all of 1990s vintage, are 97 percent leased, with the Wake County Public School System taking a vast majority of the space.

The school system first occupied the buildings in 2011 under a lease that does not expire until 2034, and which includes annual rent escalations. About a third of Building III is leased to Jacobs Engineering, and a small percentage of that building is vacant (the other two are fully occupied by the school system).

The buildings’ occupancy is thus much higher than the average of office buildings in the area. Occupancy in the area averages 77.9 percent, and new leases coming within six months of expiring leases in the area pull in 1.5 percent less rent, according to CommercialEdge data.

READ ALSO: When Office Meets Hospitality

Menlo Equities acquired the three buildings in 2018, the same source indicates. Loans for each building, all held by PNC Bank, reached their maturity around the time of the most recent sale.

The buildings are low-rise, two stories each. Amenities include tenant in-suite restrooms and redundant power. The school district uses them both as operational headquarters and public-facing service centers with roughly 1,200 parking spaces.

Easterly in acquisition mode

Washington, D.C.-based Easterly has been an active buyer of government-leased assets this year, inking such deals in the third quarter as the August acquisition of a 193,100-square-foot outpatient facility leased to the Department of Veterans Affairs in Jacksonville, Fla. It was the final property to be acquired in a 10-property portfolio, all of which are fully leased to the VA.

In September, the company acquired Northrop Grumman-Dayton, a facility that has been occupied by Northrop Grumman Systems Corp. since 2012 and which incorporates robust security enhancements, such as secure design standards, access control systems and security cameras. The property is adjacent to Wright Patterson Air Force Base in Ohio and its Air Force Research Laboratory headquarters, as well as the Air Force Institute of Technology.

By the end of the third quarter, the REIT solely, or as part of a joint venture, owned 95 properties in the U.S. encompassing about 9.3 million square feet, according to SEC filings. Easterly maintains a proprietary database that tracks about 8,500 leases totaling roughly 200 million square feet and includes substantially every major U.S. government-leased property that meets the company’s investment criteria. The database also includes information about the ownership of such properties.

In October, the company acquired a 104,136-square-foot facility, also leased to Northrop Grumman, in Aurora, Colo., immediately west of Buckley Space Force Base. About 70 percent of the three-floor buildout is under secure design standards. Buckley SFB provides strategic and theater missile warning to the U.S. and its allies.

Easterly’s holdings feature a long list of tenants, including the aforementioned VA and Northrop Grumman, but also the FBI, IRS, EPA, FEMA, FDA, DEA, Department of Transportation, Department of Justice, Social Security Administration, U.S. Citizenship and Immigration Services, as well as Immigration and Customs Enforcement, among others.

The post Easterly Government Acquires Raleigh-Area Office Campus appeared first on Commercial Property Executive.

The property will have rail service from Fulton County Railroad. It is one of four OmniTRAX railroads in Georgia that connect customers to the North American rail network, providing rail, port and market access to the Southeast. Pad-ready construction is expected in February 2025.

The area provides a rare infill redevelopment opportunity within Atlanta’s I-20W submarket, home of industry giants such as UPS, Amazon, Lowes, Google and Walmart. Also nearby are the world’s busiest airport (Hartsfield-Jackson) and immediate access to Atlanta’s three converging interstate systems.

A strong industrial market

“Atlanta’s industrial market remains one of the most sought-after in the Southeast, driven by its connectivity, skilled workforce and growing population,” Marc Civitillo, managing director of acquisitions, SkyREM, told Commercial Property Executive.

SkyREM is expanding its portfolio nationally and across the Southeast, including recent acquisitions of a nearly 650,000-square-foot facility in Savannah, Ga. and a 1 million-square-foot facility in Macon, Ga.

READ ALSO: Top 10 Markets for Cold Storage Development

“We are continuously seeking new acquisition opportunities in Atlanta and other key markets, focusing on properties that offer modern facilities with strategic access to distribution networks, ports and rail infrastructure to meet the rising demand for industrial space,” Civitillo said.

The rail connectivity advantage

In June, OmniTRAX, was named the exclusive railroad operator for Ports of Indiana – Mount Vernon. OmniTRAX operates 27 railroads, serving ports and industrial parks nationwide. The new rail agreement serving the 1,200-acre port began in August and is the fourth domestic port in the OmniTRAX network.

Ports of Indiana-Mount Vernon has an estimated budget of $1.6 billion and handles more cargo than any other port in the state.

A year ago, South Korea-based automotive part supplier Kyungshin America Corp. selected Savannah Gateway Industrial Hub, a 2,700-acre industrial park sited 12 miles outside the Port of Savannah in Rincon, Ga., to locate its new distribution center.

The master-planned development is owned by a public-private partnership including The Broe Group, its transportation affiliate OmniTRAX and the Effingham County Industrial Development Authority. Construction began in 2019 with the development of a 1 million-square-foot building. Upon completion, the master-planned project is set to comprise 18 million square feet.

The post The Broe Group Plans Build-to-Suit Atlanta Project appeared first on Commercial Property Executive.

Meta, the parent company of Facebook and Instagram, will build a $10 billion, 4 million-square-foot AI-optimized data center campus in Northeast Louisiana’s Richland Parish. Site work will begin later this month, with construction continuing through 2030.

The facility reportedly will be the largest of more than 20 Meta data centers around the world. It’s also one of the largest private capital investments in the state’s history.

Louisiana Economic Development did not reply to Commercial Property Executive’s request for additional information.

Meta’s largest data center campus in the world

The data center’s location is on a 2,250-acre megasite formerly known as Franklin Farms, between Rayville and Delhi, La., about 30 miles east of Monroe, La.

Roughly 20 years ago, local landowner George Franklin persuaded the state of Louisiana to purchase the land, essentially banking it for a large future economic development project, at that time envisioned to be an automobile plant, according to a report in Shreveport Times.

READ ALSO: The Dizzying Pace of Data Center Investment

Access to infrastructure and a reliable grid were among the reasons for Meta’s selection of the Richland Parish site, Director of Data Center Strategy Kevin Janda said in prepared remarks.

In that vein, regional electric utility Entergy plans to expand its generation capacity in the area, and Meta has committed to match its electricity use with 100 percent clean, renewable energy, up to a total of at least 1,500 MW.

In addition, the company has pledged to invest more than $200 million in local infrastructure improvements, including roads and water systems, and to invest in water restoration projects in Louisiana, with the goal of restoring more water than it consumes at the data center.

Big data plus big money

An in-depth CPE article examines, among other topics, the extent to which AI might be supplanting cloud computing as the main driver of data center development nationwide. The central role of access to electrical power is also highlighted.

No wonder, then, that the sector is seeing deals like the one in October, when Equinix launched a joint venture with partners GIC and the Canada Pension Plan Investment Board to raise in excess of $15 billion to develop hyperscale data centers across the U.S.

The post Meta Eyes $10B AI-Optimized Data Center Campus appeared first on Commercial Property Executive.

Advanced therapy initiation and patient solutions provider AssistRx signed a 54,664-square-foot lease at Maitland Promenade II, a 230,366-square-foot office building in Maitland, Fla., an Orlando submarket. KBS Realty Advisors owns the building, according to CommercialEdge.

HLI Partners arranged the long-term deal on behalf of the tenant, while CBRE represented the landlord. AssistRx is expected to move in starting in the second quarter of 2025.

KBS Realty Advisors acquired the asset in December 2013 for $31.2 million from Flagler, CommercialEdge shows. The property traded for some 40 percent less than in 2008.

READ ALSO: Why AI Firms Are Taking a Measured Approach to Office Leasing

Orlando’s vacancy rate at the end of October decreased 40 basis point year-over-year, reaching 16.1 percent, according to the latest CommercialEdge office report. The metro’s listing rate during the same month was $28.16, slightly below the $32.79 national figure.

CBRE Senior Vice President Jay Dixon and First Vice President Colin Morrison represented the landlord. HLI Partners Principal Joe Hills worked on behalf of the tenant.

A two-building Orlando office campus

The five-story, Class A building came online in 2001 and features a cafe, a three-story parking garage, a fitness center, a conference center and about 1,140 parking spaces. Additionally, the facility has 2,000 square feet of retail space and is part of a two-building campus. The other property measures 241,659 square feet and was completed two years earlier.

Located at 495 N. Keller Road on more than 9 acres, Maitland Promenade II has access to Interstate 4. Downtown Orlando is 9 miles away, while Orlando Executive Airport is some 10 miles southeast.

In another Orlando lease this year, Travel + Leisure signed a 15-year, 182,000-square-foot deal at the 501 West Church building. Piedmont Office Realty Trust owns the five-story property that came online in 2003.

The post KBS Realty Lands 55 KSF Tenant Near Orlando appeared first on Commercial Property Executive.

Once known primarily for its role as a financial hub, Charlotte is now a more diverse, dynamic market. To accommodate this ongoing change and the shifts in work patterns, office landlords and developers are rethinking the role of office buildings.

Tenants are favoring spaces that elevate the employee experience by offering premium amenities and flexible layouts tailored to evolving workstyles. Newer or recently upgraded properties are consistently outperforming older office stock, much like in other parts of the country.

Crescent Communities, a real estate investor, developer and operator of mixed-use communities, has several large projects underway in the Charlotte area and Managing Director Sagar Rathie anticipates steady demand for office space in the coming years. We asked Rathie to talk about Crescent’s flagship projects and to share his perspective on the city’s competitive office market at large.

READ ALSO: Charlotte Office Investment Off to Stronger Start in 2024

How would you describe office space demand in Charlotte?

Rathie: Office space demand in Charlotte has shown interesting dynamics as the workforce adjusts to a new era defined by hybrid work. Our experience and recent data indicate that demand is on the rise. Over the past several quarters, we’ve observed steady increases in both tour activity and new lease deals, pointing to sustained interest from companies seeking modern, well-located office spaces.

A notable trend we’re seeing is the flight to quality, with occupancy rates 85 percent higher in newer or recently renovated buildings compared to older spaces. This aligns with what we hear from employers: Hybrid and remote work trends are likely permanent fixtures, but high-quality office spaces with meaningful amenities are still valued. Employers want to give their employees spaces that make coming into work worthwhile. Offices that offer engaging environments, premium amenities and thoughtful designs that enhance collaboration and productivity.

What’s your competitive advantage in Charlotte’s office market?

Rathie: Crescent Communities’ established assets offer a significant competitive advantage. Our office communities have been strategically designed to not only serve as places of work but also as hubs of activity and convenience for employees.

Take, for example, One Independence Center in Uptown. It recently underwent a massive renovation to meet the diverse needs of today’s workforce—and one of its most salient renovations was the addition of ground-floor retail options that bring vibrancy and convenience to the workday.

For example, the building offers North Carolina’s first Sweetgreen location, New York-style Portofino’s pizza, Coco and the Director coffee shop, and Starbucks, alongside MD Boutique, a wellness-focused med spa that caters to employees looking for quick and accessible self-care options. Our retail offerings are anchored by Monarch Market, Uptown Charlotte’s only experiential dining hall, which opened in late 2023. Monarch Market is designed to be a true lifestyle destination that enhances the entire Uptown streetscape, giving employees an immersive dining experience just steps from their office.

Additionally, the locations of our properties within walking distance or a short drive to major transportation hubs, dining spots, retail and wellness centers give us a competitive edge. This accessibility is a key draw for companies who want to provide employees with a seamless blend of work and lifestyle amenities.

Do Charlotte tenants tend to favor any specific amenities or building features?

Rathie: Connectivity is a top priority for employers, not only in terms of technology but also in creating “third spaces,” which are inviting communal areas outside of traditional workspaces where people can socialize, collaborate or simply recharge. These spaces are becoming essential for companies aiming to foster an engaged workplace culture, and we’ve been intentional about integrating them into the design of our office spaces, like One Independence Center or our recently delivered four-story mixed-use building, Elizabeth on Seventh. Gone are the days of traditional workspaces with cubicles and closed-off offices—employers now seek environments that promote interaction among employees that feel more like home.

Another key feature in demand is natural light. Employers increasingly want work environments that feel open, bright and connected to the outdoors. The benefits extend beyond aesthetics—natural light positively impacts well-being, which is why we design our spaces with ample windows, thoughtful layouts and seamless outdoor access to bring the outside in.

Flexibility is also crucial as employers look to adapt their office layouts to suit evolving work patterns. This could mean multi-use areas that can transition between collaborative hubs and private workspaces or conference rooms that can be easily reconfigured for remote meetings. We design workspaces with this flexibility in mind, creating spaces that can evolve alongside changing needs.

Your Carson & Tryon project seems to be one of the only new office buildings opening in the Charlotte region in the next few years. Tell us more about the particular advantages you see in launching during a time with limited new office supply.

Rathie: What’s been truly driving interest is Carson & Tryon’s prime location bridging Uptown and South End—two of the most desirable office submarkets not just in Charlotte, but across the Southeast. This strategic position will give employees direct access to Charlotte’s vibrant business core while being minutes from South End’s dynamic retail, dining and cultural scenes, providing the best of both worlds.

Potential lessees have also been motivated by Carson & Tryon’s employee-centric design. For example, the building design features 10,000 square feet of activated food and beverage retail, including thoughtfully curated dining options that cater to the needs and tastes of today’s workforce.

In an era when employees prioritize flexibility and experiences that enhance the workday, Carson & Tryon’s combination of premium amenities and unbeatable location has positioned it as a top choice for companies looking to elevate their office presence.

Another project you have in the works is The River District mass timber office development. What impact do you expect it to have on Charlotte’s office landscape? 

Rathie: As the only North American subsidiary of Sumitomo Forestry, Crescent Communities has a unique leg-up in mass timber construction, allowing us to leverage cutting-edge techniques and materials that align with global sustainability goals.

Mass timber offers several distinct benefits that make it an ideal choice. From a construction perspective, it’s faster to build, generates significantly less waste and offers more design flexibility compared to traditional materials. This approach reduces CO2 emissions by 66 percent compared to steel equivalents, which is a huge step in our mission to minimize the carbon footprint of our developments. At the same time, the natural aesthetic and warmth of timber promote a healthier, more inviting environment, supporting the well-being and productivity of occupants. Mass timber construction is not only an investment in a more sustainable future but also a way to create spaces that remain relevant over time, designed to support environmental health and the overall wellness of employees.

What specific employee-centric amenities are planned for these office projects to support wellness, productivity and a positive work-life balance?

Rathie: We recognize that supporting employee well-being is essential to attracting and engaging top talent. Our office projects are designed with employee-centric amenities at their core, with highlights including Carson & Tryon’s 5,000-square-foot dedicated indoor and outdoor fitness studio space, its 8,000-square-foot sky terrace and its bespoke indoor and outdoor lounge designed to accommodate everything from collaborative meetings to quiet reflection or after-work events. One Independence Center’s transformation of the ground floor into a lifestyle and entertainment destination for Uptown workers creates a vibrant space for employees to unwind and enjoy high-quality food options during or after the workday.

Future workspaces at The River District features expansive windows for natural light, surrounded by trails, green spaces and views along the Catawba River, encouraging employees to take breaks, exercise and connect with nature for mental and physical wellness.

Located in Charlotte’s historic Elizabeth neighborhood, Elizabeth on Seventh recognizes that art and aesthetics play a crucial role in supporting wellness and a positive work-life experience. We curated public art throughout the property to transform walls, entrances and other spaces into vibrant, uplifting creations.

How are all these projects designed to accommodate evolving tenant needs over time?

Rathie: Our office projects are designed with a forward-thinking employee-centric approach to accommodate needs well into the future. Recognizing that flexibility is key, we focus on adaptable layouts that allow employers to reshape spaces as their workstyles and team structures change. Open, modular spaces support everything from collaborative gatherings to private work areas, ensuring that the workspaces can evolve as operational needs shift.

To further future-proof our buildings, we emphasize high-quality wellness amenities that cater to the growing demand for work-life balance and employee well-being …

Also, sustainability is a core priority in our developments. As of last year, nearly all our multifamily and office communities feature electric vehicle charging stations. Our office communities are also 43 percent more energy-efficient and 51 percent more water-efficient compared to industry standards. Additionally, we consistently pursue LEED certifications across our commercial and industrial properties, underscoring our commitment to high-performance, sustainable spaces.

How do you expect office demand to evolve in the metro?

Rathie: We anticipate steady demand for office space in Charlotte in the coming years, particularly as companies continue to seek locations that offer a mix of quality and flexibility. While hybrid work is here to stay, newer buildings and properties with updated amenities will continue to capture the lion’s share of employer interest. Charlotte is well-positioned to meet this demand with its growing infrastructure, thriving business ecosystem and appeal as a relocation destination for both companies and individual employees.

The post Crescent Exec Weighs In on Charlotte’s Evolving Office Market appeared first on Commercial Property Executive.

The funding reportedly will enable the ongoing leasing of the property, whose tenants already include Puttery, Velvet Taco, Sea Saw/Shinso, Chama De Fogo, Midtown Boba and Collectors Club.

Wynwood Walk is at 230 N.W. 29th St. in Miami, was completed in 1978 and is about 77 percent occupied, according to information provided by CommercialEdge.

Thor Equities has secured more than $100 million in financing with ACRES in the past 30 days. Earlier in November, Thor closed a $68.5 million construction loan for 377 Carlls Path in Deer Park, N.Y. This financing will be used to develop a 310,500-square-foot Class A industrial facility.

READ ALSO: Retail’s Post-Pandemic Recovery

Thor has also recently acquired a 270-acre industrial property in metro Atlanta, improved with a 506,220-square-foot facility with a dedicated 100 MVA substation and 50 MW power output. Thor describes the site as having the infrastructure needed for the development of data center or advanced manufacturing space.

Staying strong

Another recent deal, too, evidences the breadth of Thor Equities’ activities. In June the company acquired a 250,000-square-foot industrial facility in Laredo, Texas. The building was completed in 2023 and is occupied by a customs broker under a five-year lease.

Miami-Dade County’s retail market continues to absorb new construction faster than the admittedly limited quantity of deliveries, according to a third-quarter report from Colliers. Leasing in the latest quarter total 314,000 square feet, versus new supply of just 28,000 square feet.

It’s thus unsurprising that rents are up by 6.3 percent year-over-year, to $46.00 per square foot, triple net. Colliers predicts that current conditions will lead to metro Miami retail property values outperforming the national average.

The Wynwood submarket has a total vacancy of 6.5 percent on an inventory of 2.9 million square feet.

The post Thor Equities Secures Loan for Miami Retail Center appeared first on Commercial Property Executive.

Clarion Partners has acquired Jedburg Logistics Park Building 2, a 158,340-square-foot Class A distribution facility in Summerville, S.C., within the Charleston, S.C. market. The company paid approximately $25.3 million for the asset, according to CommercialEdge data.

The seller is a joint venture between Trinity Capital Advisors and Hartford Investment Management Co. JLL negotiated on behalf of the partnership.

Recently completed, the facility at 237 Jedburg Road includes 32-foot clear heights, 25 dock doors, two drive-in doors, ESFR sprinkler system, 170 vehicle parking spots and 19 trailer parking spots. The industrial property is fully leased by Amazon, that uses it as a warehouse and distribution center, CommercialEdge data shows.

Trinity Capital Advisors developed Jedburg Logistics Center, marking its second industrial speculative project in the region. The campus also includes the 621,920-square-foot Building 1 at 241 Jedburg Road.

Jedburg Logistics Park is on a 115-acre lot, close to Interstate 26 and to U.S. Route 78. Charleston International Airport is 22 miles southwest, Port of Charleston is 30 miles away, while downtown Charleston within 34 miles of the site.

Charleston’s industrial vacancy rate decreased

Charleston ended the third quarter of 2024 with an industrial vacancy rate of 11.9 percent, according to a Cushman & Wakefield report. For the first time in six quarters the rate inched down, falling 50-basis-points from the second quarter. New leasing activity totaled more than 1.4 million square feet in the third quarter, the highest amount in more than six quarters.

A notable industrial acquisition that closed recently is Stockbridge’s purchase of a 1.2 million-square-foot industrial property in Ridgeville, S.C. The company picked up Building D at Cam Hall Commerce Center from a joint venture, represented by JLL.

The post Clarion Partners Pays $25M for Charleston Asset appeared first on Commercial Property Executive.

SL Industrial Partners, an affiliate of The Silverman Group, has sold a 402,390-square-foot, fully occupied industrial facility in Concord, N.C. The buyer is Stonelake Capital Partners, which paid $51 million for the asset, Cabarrus County public records show.

The deal marks the buyer’s first purchase in the Charlotte metro. Avison Young worked on behalf of the seller, while Stonelake Capital Partners was represented in-house.

The Class A facility is at 7040 Northwinds Drive NW, within the Concord Airport Business Park. The seven-building industrial campus was developed by The Silverman Group and totals approximately 2.1 million square feet.

The property came online in 2014 as the first building on the campus and includes 36-foot clear heights, four grade-level doors and 84 dock-high doors. Amazon is fully using the property as a fulfillment center.

The one-story building is on nearly 39 acres, close to Concord Padgett Regional Airport and to Interstate 485, that allows easy connection in the area. The property is 17 miles from Charlotte, 23 miles from Charlotte Douglas International Airport and within 64 miles of Winston-Salem, N.C. Vice President Abby Rights and Principals Chris Skibinski and Henry Lobb with Avison Young worked on behalf of the seller. Director Mark Hedrick, together with Investment Associate Jack Harvey and Partner William Jenkins represented Stonelake Capital Partner in-house.

Industrial deals in Charlotte

Charlotte’s industrial sales volume reached $683 million as of October, a recent CommercialEdge report shows. The metro outperformed Baltimore, with $458 million, and Memphis, with $294 million, in the South region. The metro’s industrial vacancy rate clocked in at 4.3 percent, keeping its position as the tightest market in the South, significantly below the national figure of 7.2 percent.

Significant industrial deals closed this year includes LM Real Estate’s $97 million purchase of a 1.4 million-square-foot property. The company picked up the asset from a joint venture between Somerset Properties and Waterfall Asset Management.

In March, Equus Capital expanded its footprint in North Carolina with the acquisition of a nine-building industrial portfolio near Charlotte and Greensboro. The 1.4 million-square-foot portfolio changed hands for $124 million through a sponsored value-add fund called Equus Investment Partnership XII LP.

The post Stonelake Capital Enters Charlotte With $51M Buy appeared first on Commercial Property Executive.

Sterling Organization has sold regional shopping center Windsor Square for $70.1 million to Hackney Real Estate Partners. The 658,000-square-foot asset in suburban Charlotte, N.C., previously traded for $38.4 million.

The seven-building property occupies nearly 64 acres at 1814 Windsor Square Drive, off U.S. Route 74 in Matthews, N.C. Downtown Charlotte is about 9 miles away, and closer at hand, the shopping center is about 1.5 miles north of Interstate 485.

READ ALSO: Retail’s Post-Pandemic Recovery

At the time of the sale, Windsor Square was 97 percent leased. Tenants include Sam’s Club, Kohl’s, Ross Dress for Less, PetSmart, Office Depot, Beall’s and At Home. More than 58,000 people live within a 3-mile radius of the property, with an average household income of about $114,000.

Sterling now owns about 13 million square feet among 73 properties. In September, the company acquired a 994,000-square-foot portfolio of open-air shopping centers in the Atlanta, San Antonio and Washington, D.C., metros for $180.5 million.

In June, the firm closed its Sterling Value Add Partners IV LP. The fund obtained total capital commitments of $600 million, exceeding the $500 million target, and pursues the acquisition of value-add grocery-anchored shopping centers, neighborhood centers and power centers.

Charlotte retail tight

The Charlotte retail market is a tight one, coming in at 3.1 percent vacancy at the beginning of the fourth quarter, according to a Marcus & Millichap report. Some 820,000 square feet is currently under construction.

Companies leased nearly 2 million square feet of Charlotte retail space in 2023, the report shows, with less than a 1 million square feet completed that year. Leasing is down so far in 2024, to less than 1 million square feet. However, asking rents edged up by more than 4 percent this year to about $20 per square foot.

The post Sterling Organization Sells Shopping Center for $70M appeared first on Commercial Property Executive.

Rockpoint and Oppidan Investment Co. have sold the 233,818-square-foot Building I at their $100 million Apex Commerce Center, a four-building industrial property in Apex, N.C. LaSalle Investment Management acquired the Class A asset, while JLL represented Rockpoint.

The duo broke ground on the 847,171-square-foot park in 2022. Building I came online one year later. Apex Commerce Center’s other three facilities are slated for occupancy between July and September 2025.

The rear-load Building I features 32-foot clear heights, 60-foot speed bays and 180-foot truck courts. Two drive-in doors are available, as well as 12 dock-high doors with the option of adding an extra 37.

READ ALSO: Industrial Demand Slips, But Avoids a Slump

Located at 1251 Burma Drive, the facility is about 6 miles from North Carolina Route 540, which is currently undergoing an expansion meant to extend the thoroughfare, looping around the Greater Raleigh area. The Research Triangle Park and the Raleigh-Durham International Airport are roughly 21 miles north.

JLL Senior Director Dave Andrews and Senior Managing Director Pete Pittroff led the team that represented Rockpoint in the transaction.

Rockpoint’s industrial strategy

Earlier this month, Rockpoint and Portman Industrial disposed of Camp Hall Commerce Center’s Campus 4, a 1.2 million-square-foot facility in Ridgeville, S.C. Stockbridge acquired the asset, which was fully leased to Volvo at the time.

Last month, Rockpoint sold its interest in a two-asset industrial park totaling 243,000 square feet in Otay Mesa, Calif., next to the Mexico border. The firm developed the campus in partnership with Badiee Development—which subsequently purchased it.

Raleigh-Durham’s steady industrial investment

Greater Raleigh-Durham witnessed a spike in industrial transactions during the third quarter, a CBRE report shows. Prologis was active in the market with the $80.2 million acquisition of the Alexander Commerce Park in September. Trinity Capital Advisors and Nuveen Real Estate sold the 441,072-square-foot campus.

Stoltz Real Estate Partners—as part of a 25-asset portfolio deal spanning Tennessee, Georgia and North Carolina—purchased two properties in Raleigh-Durham from Dogwood Industrial Partners. Spanning 820,000 square feet, the duo traded for $97 million.

The metro’s industrial vacancy rate dropped 20 basis points quarter-over-quarter—the first tightening since June 2023—landing at 5.9 percent in September, the report goes on to show. The decrease may be attributed to Raleigh-Durham’s industrial pipeline, which prior to the third quarter reached its lowest level since the first half of 2021.

The post LaSalle Buys Raleigh-Durham Industrial Asset appeared first on Commercial Property Executive.

Goldman Sachs Alternatives has paid $100.6 million for Rockingham Farms Building 9, a 942,210-square-foot, Class A distribution center in Savannah, Ga., Scannell Properties sold the asset with the assistance of JLL.

Completed in 2023, the building is at 125 Feldspar Drive in the Rockingham Farms Logistics Park, a new 10 million-square-foot industrial park located 8.3 miles from the Port of Savannah’s Garden City Terminal. The property is also close to Interstates 95 and 16, having direct access to Veterans Parkway along with other major Savannah corridors.

READ ALSO: Industrial Demand Slips, But Avoids a Slump

Fully leased to four tenants, the cross-dock building features a 40-foot clear height, 185-foot truck court depth, 183 dock-high doors and 7,500 square feet of office space. The property has ample trailer and auto parking.

JLL Senior Managing Directors Britton Burdette, Matt Wirth and Dennis Mitchell along with Senior Director Jim Freeman led the Investment Sales and Advisory team representing the seller.

In May, Scannell sold another property in the industrial park with assistance from the same JLL team. DWS acquired Rockingham Farms Building 10, a 413,230-square-foot bulk-distribution center for $50.8 million. That facility was also completed last year.

Earlier in the year, Scannell partnered with INDUS Realty Trust Inc. for the development of Rockingham Farms Commerce Center, a 1 million-square-foot campus within the same park. The first phase of the development will include two 284,580-square-foot buildings.

Growing industrial market

Savannah continues to experience growth, driven by the record cargo volumes at the Port of Savannah as well as multimillion-dollar expansion projects in the area and extensive logistical connectivity, Burdette said in prepared remarks.

The metro’s industrial market continues to have positive absorption. Savannah ended the third quarter with an overall vacancy rate of 9.0 percent despite more than 2.4 million square feet of new construction deliveries during that three-month interval, according to a Cushman & Wakefield report. Leasing activity outpaced 2023 with 8.3 million square feet year-to-date compared to 7.8 million square feet in same quarter a year ago.

There was a total of 25.1 million square feet of development underway at the end of September, with more than 15 million square feet attributed to the new $5.5 billion Hyundai EV plant or its suppliers and the remainder representing speculative warehouse space. Cushman & Wakefield noted nearly 30 percent of the spec space was already preleased.

The post Goldman Sachs Pays $101M for Savannah Industrial Property appeared first on Commercial Property Executive.

Most recently, Bayview Asset Management renewed its 55,071-square-foot lease at the Office at Merrick Park, a Class A office space located at 4425 Ponce de Leon Blvd. Colliers Vice Chair Stephen Rutchik and Vice President Tom Farmer represented landlord Brookfield Properties, while Matthew Cheezem of Cushman & Wakefield worked on behalf of the tenant.

This lease renewal—one of South Florida’s largest office deals this year—highlights Coral Gables’ competitive edge against other markets in the region. Commercial Property Executive asked Farmer to talk about trends shaping Coral Gables’ growth as a premier business destination in South Florida.

READ ALSO: Growth in Office Tenant Costs Moderates

How has Coral Gables grown into such a sought-after submarket? What has led to its competitive standing?

Farmer: Coral Gables has historically been a premier suburban office market, due to its location within easy reach of all of Miami-Dade County and defined by Mediterranean architecture, and its stellar demographics. In recent years, rent appreciation and constrained supply in the Miami CBD has caused office tenants to look further afield, and Coral Gables has reaped the benefits—maturing into a strong, stable market. 

Is there a particular sector or tenant type showing increased interest in the area?

Farmer: Tenants are looking for exciting spaces in office buildings that reflect their image to clients and help them to attract and retain talent. Coral Gables has delivered that in recent years. Many sectors, including financial service firms, law firms, coworking operators, biomedical research, travel and tourism, and tech firms have established new locations in Coral Gables. 

After securing a lease renewal for almost half of the space at Merrick Park, Brookfield Properties now intends to begin capital improvements at the building. What impact do you expect these renovations to have?

Farmer: Brookfield Properties, who have owned Merrick Park since 2018, decided it was time to invest in the asset, with the focus on overall tenant experience, after analyzing the competing properties and feedback from prospects and existing tenants. The capital improvements are focused on visitor sense of arrival which begins in the parking garage, extend through the ground-floor lobby, and to the office elevators. The renovations are set to begin in November and should be completed by the third quarter of 2025. 

Besides the building’s fresh look after the renovation, what else will be making it stand out among competitors in the market?

Farmer: The Offices at Merrick Park offers unique advantages, relative to the competitive set in Coral Gables. As traffic around Alhambra Circle becomes more congested, Offices at Merrick Park offers a much easier commute for tenants and visitors from Coral Gables, Pinecrest or South Miami neighborhoods. Additionally, it has an above-market parking ratio of 4:1,000 square feet, and it’s connected to the adjacent Shops at Merrick Park Mall, offering access to all the amenities and food and beverage options the mall offers. 

To what extent do such improvements matter in attracting high-profile tenants considering the ongoing trend toward hybrid and remote work?

Farmer: Ownership groups, such as Brookfield Property Group, have made deliberate efforts to improve their assets to make them more attractive to office users which, in turn, has made it easier for employers to not only bring employees back to the office but also attract new talent. Several have made the decision to update lobbies and common areas.

Other capital improvements such as the addition of fitness centers and conference facilities, which are generally free of charge for tenant usage, have also been very impactful. Many landlords have also made the decision to take existing vacancies and create move-in-ready spec office spaces with upgraded finishes to meet tenant demands. The Offices at Merrick Park offers shorter commute times to and from many Miami suburbs, which supports hybrid work particularly well. 

Speaking of Miami suburbs, what attributes set Coral Gables apart from other high-demand business areas in South Florida?

Farmer: Coral Gables is centrally located within the county and offers an outstanding quality of life, with some of the best schools in the nation, cultural amenities, upscale retail and dining options that support tenants’ decisions to office away from the CBD, with the added advantage of lower office rental rates.

Home to the University of Miami—a private research university and academic health system—Coral Gables offers a highly skilled workforce, in which more than half of residents are fluent in another language and nearly 70 percent hold a bachelor’s degree and 25 percent have graduate or professional degrees—about three times the Miami-Dade County average. 

How do you see office space offerings in this submarket evolving over the next few years?

Farmer: Our expectation is that ownership groups will continue to invest in their assets, improving them aesthetically as well as adding amenities to capture activity from both relocating and new-to-market tenant users. We also expect landlords to continue the trend of having robust spec suite programs.

Landlords will continue to engage with architectural design firms to stay ahead of emerging trends to create move-in ready office spaces that meet the demands of the market. The introduction of Agave Holdings’ The Plaza Coral Gables as well as the 4225 Ponce from Constellation Group and The Boschetti Group—currently under construction—have raised the bar in Coral Gables in terms of office product quality and tenant experience. Existing office landlords have taken note and are making the necessary improvements to stay attractive and relevant.

The post How Coral Gables Is Cementing Its Status as a Top Office Market appeared first on Commercial Property Executive.

Longpoint Partners has acquired a 26-building, 1.4 million-square-foot industrial portfolio in South Florida for $331.3 million. Blackstone sold the assets, according to the Commercial Observer.

The infill, last-mile facilities had an average occupancy rate of 97 percent upon closing. Delivered between 1964 and 2003, the light industrial properties feature an average clear height of 21 feet, as well as 50- to 200-foot truck court depth. Notably, nearly a quarter of the portfolio’s expanse comprises office space.

The investor will implement a value-add strategy, according to Longpoint. The investor’s approach involves physical repositioning, adaptive reuse and development.

READ ALSO: Shallow Bay Industrial’s Deep Potential

More than a third of the facilities are in Miami-Dade County, with the remainder in Broward and Palm Beach counties. The last-mile properties will benefit from the Golden Glades Interchange Enhancement, which is set to add 32 new bridges to augment regional mobility between seaports and airports.

The CBRE team that represented the seller included National Partners Vice Chairmen Jose Lobón, Frank Fallon and Trey Barry, as well as Vice President Royce Rose, to name a few.

Longpoint’s latest purchase isn’t its sole portfolio investment in South Florida. Just last year, the investor paid $260 million for a 25-building deal in Greater Miami and Fort Lauderdale, Fla. Seagis Property Group sold the 1.4 million-square-foot asset collection.

The investor is active outside of Florida as well. This summer, Longpoint made its entrance in the Bay Area industrial market by acquiring a three-building, light industrial portfolio in Fremont, Calif., for $31.5 million.

Investors bullish on last-mile assets

Over the past several years, investment in last-mile distribution facilities has increased significantly, Moody’s Senior Economist Ermengarde Jabir previously told Commercial Property Executive.

The niche took off as investors preferred such facilities over assets in traditional locations, according to a 2022 Wealth Management Real Estate survey. Additionally, the survey also found that the price per square foot for last-mile facilities grew at a compound annual rate of 17.2 percent between 2017 and 2022.

Metro Miami’s bulk of industrial sales comprises small-scale facilities

Metro Miami’s industrial investment reflected the study’s findings. A large share of the facilities that changed hands during the first half of the year were under 50,000 square feet—in tune with the characteristics of last-mile properties—and posted a below-average vacancy rate year-over-year, according to a report by Marcus & Millichap.

The bulk of transactions closed below the $10 million mark, while the average price per square foot clocked in at $297 during the same period, Marcus & Millichap shows. Although the industrial deal flow softened compared to previous years, it remained on par with the activity recorded between 2015 and 2019.

The post Blackstone Portfolio Trades for $331M appeared first on Commercial Property Executive.

Samaritan’s Purse has signed a lease to occupy the entire 172,000-square-foot warehouse at 1347 Highway 92 in Acworth, Ga. Prologis owns the facility, according to Cherokee County records. Lee & Associates negotiated on behalf of the tenant while the owner had in-house representation.

The nondenominational evangelical Christian organization plans to use the space as a processing center for Operation Christmas Child, a charitable effort involving the shipping of gifts to children worldwide. Including this new space, Samaritan’s Purse will use eight warehouses across the U.S. to process the gifts.

READ ALSO: SIOR Special Report: Q&A With the President

Prologis paid $24.6 million for the asset in 2023, acquiring it from Link Logistics, public records show. The 2016-completed building has 32-foot clear heights, 43 dock doors and two drive-in doors, as well as 149 auto parking spaces. It also includes 8,249 square feet of office.

Samaritan’s new warehouse is less than 1 mile from Georgia State Route 92 and Interstate 75, as well as roughly 30 miles northwest of downtown Atlanta and about 41 miles from the Hartsfield-Jackson Atlanta International Airport.

Lee & Associates Partner Brett Chambless, SIOR, represented Samaritan’s Purse. Prologis Senior Vice President Kent Mason led the negotiations on behalf of the owner.

Metro Atlanta industrial vacancy rate below historical average

Atlanta’s industrial vacancy rate grew 50 basis points quarter-over-quarter, to 7.4 percent in September, according to a report by Cushman & Wakefield. Despite the increase, the percentage was still under the 20-year historical average of 7.9 percent. New industrial leasing activity hit 7.3 million square feet in the third quarter, the highest it’s been since 2022’s fourth quarter.

As industrial deliveries softened—just 4.9 million square feet in the same period, the lowest since 2021’s second quarter—and the 10.1 million-square-foot pipeline registered in September tapered off, metro Atlanta’s vacancy rate is slated to stabilize in 2025, Cushman & Wakefield forecasted.

Last month, Souto Foods agreed to occupy 200,000 square feet at Foxfield and AEW Capital Management’s upcoming 2.2 million-square-foot master-planned industrial development in Lawrenceville, Ga.

The post Prologis Secures 172 KSF Industrial Lease in Metro Atlanta appeared first on Commercial Property Executive.

Portman Holdings and CapitaLand Ascendas REIT have broken ground on Summerville Logistics Center, a two-building industrial campus in Charleston, S.C, 25 miles from the Port of Charleston.

Construction of the 549,000-square-foot complex along U.S. Route 78 in Dorchester County should be completed in the fourth quarter of 2025.

Truist Bank provided construction financing for the development that is expected to cost $70.5 million. Frampton Construction serves as general contractor and McMillan Pazdan Smith is the architect.

READ ALSO: Why Things Are Looking Up for Ports, Supply Chains

Upon delivery, the campus will include two rear-load facilities with a shared truck court. The first building will be 313,000 square feet, while the second one will measure 236,000 square feet. The center will have two access points, allowing better connections to Interstate 26 and other transportation networks. Lee & Associates leads the leasing at the property targeting a LEED Silver certification.

Summerville Logistics Center is being developed 9 miles from Portman’s 188-acre Camp Hall Commerce Park campus. Portman has delivered four Class A buildings totaling more than 2.1 million square feet in the past two years.

One of those buildings, the 1.1 million-square-foot Building D, was fully leased and sold to an institutional investor earlier this month.

Charleston, an attractive industrial market

Since launching its industrial business line in 2021, Portman’s Charleston industrial portfolio has grown to 228 acres and 2.7 million square feet of space delivered, under construction or designed.

“South Carolina has long been attractive to the manufacturing industry due to generous state and county-level incentives and as a right-to-work state,” Alex Irwin, senior vice president of Industrial & Investment Services at Avison Young, told Commercial Property Executive.

According to Irwin, Charleston’s industrial market specifically has benefitted from the Port of Charleston’s growth over the past few years. The pandemic-fueled online shopping boom further contributed to the metro’s development.

“While we’ve seen a slowdown in leasing activity over the past year due to the macroeconomic headwinds, overall activity sits above pre-COVID levels and is poised to even out as the market corrects from record-high levels,” he concluded.

The post Portman, CLAR Embark on Logistics Center in Charleston appeared first on Commercial Property Executive.

AW Property Co. has obtained $55.2 million in acquisition financing for a North Carolina medical office portfolio totaling 297,500 square feet. The nine properties are in Burlington, Durham and Greensboro.

JLL worked on behalf of the borrower and placed the 10-year, fixed-rate loan. The Guardian Life Insurance Co. provided the note, according to public records show.

The firm acquired the portfolio with an average vintage of 2006 from Healthcare Realty in July. The seven Guilford County assets changed hands for a combined $79.4 million, public records also show.

The medical facilities were 99 percent leased at the time of sale to healthcare systems and independent physician practices, with credit tenants representing 73 percent of in-place income. Some of the companies occupying space within the portfolio include Cone Health, Duke Health and UNC Health.

READ ALSO: Why the Medical Outpatient Sector Is Poised for Growth in 2025

Located on or adjacent to hospital campuses, the traded properties include:

• Cone Health Neurology Clinic, a one-story building in Greensboro
• Church Street Medical Park, a three-building campus in Greensboro
• A two-story facility at 2001 N. Church St. in Greensboro
• Wesley Long MOB, a three-story building also in Greensboro
• Alamance Eye Center, a 2007-completed property in Burlington
• UNC Family Medicine Center, a medical facility in Durham
• Duke Medical Center in Durham

JLL Senior Managing Director Travis Anderson and Senior Director Anthony Sardo led the Capital Markets Debt Advisory team representing the borrower.

MOB investment activity set to grow

The medical office real estate sector remains strong, with outpatient demand projected to rise by 26 percent over the next decade, according to a Savills report. Additionally, economic conditions, such as interest rate cuts, are likely to stimulate further investing in medical office buildings.

Earlier this week, Onicx Group acquired Trinity Oaks Medical Arts Building, a two-story, 31,000-square-foot asset in Trinity, Fla. Part of a three-building BayCare Health System campus, the property came online in 2008.

The post AW Property Lands $55M for MOB Portfolio appeared first on Commercial Property Executive.

Global law firm Paul Hastings LLP has signed a 37,000-square-foot long-term lease at Knox Street, a mixed-use development in Dallas. A joint venture of BDT & MSD Partners, Trammell Crow Co., The Retail Connection and Highland Park Village Associates is behind the large-scale project. CBRE worked on behalf of both parties.

The 1 million-square-foot mixed-use development broke ground in late 2023. The project’s 150,000-square-foot office component is now fully preleased two years before its completion.

Upon delivery, the building will comprise seven stories of boutique office space with amenities such as a fitness center with high-end locker rooms, a tenant lounge and a café. The first two floors will include retail and dining options.

Paul Hastings joins anchor tenant ISN Software Corp. at the property that is scheduled to be completed by late 2026. BDT and MSD will also occupy space in the office tower.

READ ALSO: Growth in Office Tenant Costs Moderates

Knox Street will also include The Knox Hotel & Residences, managed by Auberge Resorts Collection, more than 100,000 square feet of retail and restaurants, as well as a 0.5-acre park with a direct connection to the Katy Trail.

The area has been a bright spot for landlords and tenants as the district promotes walkability, cultivates green space and has a highly social atmosphere. It is also a gateway to Highland Park.

CBRE’s Executive Vice President Trey Smith, alongside Senior Vice Presidents Alexandra Cullins and Ben Davis, negotiated the lease on behalf of the ownership. Paul Hastings was represented by Vice Chairmen Clay Hammerstein, Phil Puckett and Ken Rapp, together with Executive Vice President Harlan Davis and Transaction Manager Morgan Griffith, also with CBRE.

Recent office leases in Dallas

Nearby, law firm Walters, Balido & Crain has signed a seven-year lease renewal and expansion at Meadow Park Tower. The firm has been a constant presence in the 262,776-square-foot office building for the past 11 years.

Additionally, law firm Gray Reed signed a long-term commitment at 1845 Woodall Rodgers in Dallas, occupying two floors at the nearly 50,000-square-foot building. The tenant will beginning construction of its new office space next year.

The Dallas office market witnessed a 22.9 percent vacancy rate in September, up 390 basis points over the year, according to a recent CommercialEdge report. The rate was also 3.4 percent higher than the national average.

The post Law Firm Commits to 37 KSF in Dallas appeared first on Commercial Property Executive.

Lincoln Property Co. has received $68.2 million in refinancing for Royal Palm I and II, two Class A office buildings totaling 465,592 square feet in Plantation, Fla. Barclays provided the fixed-rate loan, in a deal arranged by JLL Capital Markets.

Lincoln Property purchased the office campus in August 2014 for $128 million from Duke Realty, with the help of a $66.5 million acquisition loan originated by Metropolitan Life Insurance Co., according to CommercialEdge information.

Built between 2001 and 2007, Royal Palm I and II rise eight, respectively nine stories on a 25.4-acre site. The property also includes a four-level parking garage with 1,927 car spots. Amenities feature conference rooms, a fitness center and a wellness room. Royal Palm I also incorporates 22,908 square feet of retail.

READ ALSO: Sizing Up the Prime Office Building Landscape

The tenant roster at the two towers includes Regus, Tobias Financial Advisors, American Global, Pediatric Associates, Upchurch Watson White & Max and Fort Lauderdale Eye Institute, among others, CommercialEdge shows.

Located at 850, 900, 950 and 1000 S. Pine Island Road, the office campus is some 9 miles from downtown Fort Lauderdale and has access to Interstate 595. Downtown Miami is 30 miles south.

Senior Managing Director Paul Stasaitis and Associate Maddy McMillen led the JLL Debt Advisory team that represented the borrower.

Miami—an expensive office market

Miami emerged as one of the most expensive office metros among gateway markets, with an average price of $354 per square foot year-to-date through August, according to CommercialEdge research. Its vacancy rate clocked in at 14.1 percent, well below the 19.4 percent national average.

In one of the largest financing deals this year so far, OKO Group and Cain International received a $565 million permanent loan from TYKO Capital for 830 Brickell, a 57-story, 638,355-square-foot building in Miami’s financial district. The high-rise is the second-tallest office tower in the city.

The post Lincoln Property Lands $68M Refi in South Florida appeared first on Commercial Property Executive.

Ryan Cos. has completed Ryan Tower, a 409,000-square-foot Class AA office building in Plano, Texas.

The Minneapolis-based company served as developer, design builder and equity partner, while Gensler designed the building. Lincoln Property Co. will manage the property.

Koch Real Estate Investments was also partner on the project, while Acore Capital provided at least $125 million in construction financing.

Ryan LLC—not affiliated with the developer—will be the property’s anchor tenant. The global tax and services and software provider will occupy approximately 50 percent of the building. Koch will also lease some 29,000 square feet at the tower.

READ ALSO: How AI Firms Are Reviving Office Space Demand

Located on 3.6 acres at 8101 Windrose Ave., the 23-story Ryan Tower is in Dallas-Fort Worth’s Platinum Corridor North submarket. As part of the $3 billion mixed-use development Legacy West, the property is surrounded by retail, restaurants and other office and residential components.

Meeting the needs of a modern workforce

Ryan Cos. first announced plans for the project back in 2021, breaking ground almost one year later. The tower was designed to meet the needs of the modern workforce, according to the company’s Director of Development Hank Biddle.

Gensler and Ryan designed the office tower to offer flexible workplace environments and floorplates, shared workspaces, adaptable tenant areas and individual offices. Ryan Tower features a fitness center, a conference center, a tenant lounge, a coffee bar, an outdoor terrace, a yoga lawn, bike storage, greenspaces, covered parking and approximately 1,600 parking spaces.

The developer aims to achieve Fitwel certification, which involves adding amenities to enhance the health and wellness of building occupants.

The post Ryan Cos. Completes DFW Office Tower appeared first on Commercial Property Executive.

Onicx Group has acquired Trinity Oaks Medical Arts Building, a two-story, 31,000-square-foot medical office building in Trinity, Fla., in the Tampa Bay area. The Graham Group sold the asset, according to Pasco County public records.

First American Bank provided the buyer with a $4.8 million note that matures in 2027, the same source shows. Fairfield Asset Advisors represented the seller.

This acquisition represents Onicx’s second investment through its Healthcare Real Estate Fund launched in August. The first closed in September, when the firm purchased Lafayette Medical Building, a 25,000-square-foot Class A facility in Lafayette, Ind.

READ ALSO: Healthy Medical Office Spaces

Trinity Oaks Medical Arts Building came online in 2008 and was more than 91 percent leased at the time of sale. Its tenants include the Orthopaedic Associates of West Florida, a subsidiary of the Florida Orthopaedic Institute, Women’s Care and Academic Alliance in Dermatology.

The facility is part of a three-building BayCare Health System complex totaling about 99,000 square feet. The property is at 2044 Trinity Oaks Blvd., some 34 miles from downtown Tampa, Fla. Medical providers in the surrounding area include Orange Blossom Women’s Group, East Lake Pediatrics. HCA Florida Trinity Hospital is less than 3 miles away.

MOB investment stays strong

The medical office real estate sector continues to remain robust, with outpatient volumes expected to increase by 26 percent in the following 10 years, according to a Savills white paper. Additionally, favorable economic factors such as the interest rate cuts are expected to lead to a rise in MOB investments.

In October, MedCraft Investment Partners acquired Sisters Grove Pavilion, a 108,204-square-foot medical office building in Colorado Springs, Colo., for $31.2 million. CommonSpirit Health sold the 2008-completed asset.

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Avison Young’s Chris Godfrey, Kirk Rich and Monica Speak with the firm’s Atlanta office leasing team represented the landlord. Patrick Braswell of Record Real Estate Partners LLC represented e|spaces.

Atlanta’s Class A properties are steadily seeing more people returning to the office, up 10 percent from 2023, according to Avison Young’s Office Busyness Index.

Return to office is trending, with less than 20 percent of workers choosing fully remote positions, according to an August survey by Lincoln Property.

“Atlanta is booming with growth and opportunity across all types of businesses, which makes this an ideal market for e|spaces,” Jon Pirtle, president & CEO of e|spaces, told Commercial Property Executive.

“The 1600 Parkwood Circle location is perfectly positioned in the Cumberland/Galleria area offering free parking and easy access to Buckhead, Midtown, Marietta and downtown.”

READ ALSO: Are Coworking Networks the Future of Office?

The property’s central location is surrounded by key corporate offices, retail, dining and entertainment options, making it convenient for professionals from all types of industries, Pirtle added. “Parkwood in particular provides a flexible, high-quality workspace that supports the diverse needs of Atlanta’s active business community.”

Coworking’s definition

Coworking means different things to anyone asked, Pirtle said.

“We are not a big, open space with a bunch of cubicles, tables or lounge furniture,” he explained. “Our spaces are designed for productivity, providing a true mix of professional, private offices and suites with great views, a variety of meeting rooms with the latest technology and capabilities, and collaborative workspace for those seeking a flexible option.”

Entrepreneurs, small business and corporate teams often have different needs, but seek a perfect mix, according to Pirtle. “Whether you are an individual needing a private office or a team of 20 to 50 needing a private suite with shared space, we have you covered with solutions that prioritize privacy, productivity, professionalism and premium amenities.”

e|spaces has locations in Nashville, Tenn., Chattanooga, Tenn., Knoxville, Tenn., and Orlando, Fla. Members in one market are able to use facilities in the others.

Pirtle said that all e|spaces locations are performing successfully because the company caters to its community. “What’s right for Orlando, for example, may not be right for Nashville or Atlanta—whether it’s the physical location within the market, or balancing office suites versus meeting rooms, or even prioritizing amenities like free parking and onsite fitness centers.”

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BGO Cold Chain has purchased Medley Cold Logistics, a 178,000-square-foot Class A cold storage facility in Miami. Truist Securities sold the asset for $60 million, according to Miami-Dade County public records. JLL brokered the deal on behalf of the seller.

BGO closed the deal as part of its Core Plus strategy. The property is fully occupied by Quirch Foods.

Medley Cold Logistics is a one-story warehouse at 7600 NW 82nd Place. It has 116,000 square feet of freezer space, more than 20,000 pallet positions, 32-foot clear heights, 29 loading docks and 236 vehicle parking spots. The property also includes a site available for further development or expansion options.

READ ALSO: Why Cold Storage Is Getting Hotter

The 15-acre property allows for access to U.S. Route 27, Florida State Road 826 and Interstate 75. Miami International Airport is 8 miles away, Port of Miami is 15 miles away and Fort Lauderdale-Hollywood International Airport is within 37 miles from the cold storage facility.

JLL Managing Director Luis Castillo, Senior Director Cody Brais and Associate Taylor Osborne led the Investment Sales and Advisory team that negotiated on behalf of the seller.

BGO ramps up cold storage investments

The Medley Cold Logistics purchase followed BGO’s acquisition of SkyChefs Cold Storage in 2023, a deal closed in joint venture with Iconic Equities that added to the company’s cold storage footprint in Florida.

BGO has three projects underway in the state—in Tampa and Jacksonville. The company’s portfolio includes more than 70 cold storage assets purchased or under construction.

This week, BGO Cold Chain started construction on Venture Park Cold at ISP in Long Island, N.Y., in partnership with Venture One. In September, it broke ground on a facility in Kansas City, Mo., which will be mostly occupied by Flora Food Group.

In late 2023, BGO served as equity partner in the recapitalization of a nearly 1.5 million-square-foot cold storage portfolio, together with Saxum Real Estate. The six facilities are in major distribution hubs in the country and are mostly occupied by Arcadia Cold Storage & Logistics.

The post BGO Pays $60M for Miami Cold Storage Facility appeared first on Commercial Property Executive.

Cousins Properties is under contract to purchase Vantage South End, a 639,000-square-foot office complex in Charlotte, N.C., for $328.5 million. The deal is expected to close next month and is subject to customary closing conditions.

A joint venture between Invesco Real Estate and The Spectrum Cos. currently owns the two-building property, according to CommercialEdge information.

The duo completed the campus in 2021 and 2022 with help from general contractor Rodgers Buildings and design firm LS3P Associates. Initial plans for the property also included an 11-story, 200-key boutique hotel.

Vantage South End comprises two 11-story, LEED-certified buildings with floorplates ranging from 21,400 to 31,400 square feet, according to CommercialEdge information.

READ ALSO: Office Vacancy on the Rise in Charlotte

The campus features 45,000 square feet of retail space, a 1-acre park, 18 outdoor terraces, several fitness and conference centers, as well as multiple on-site dining options. In addition, the property has a parking ratio of 3 spaces per 1,000 square feet.

The office complex is 97.4 percent leased with a weighted average lease term of more than nine years. Tenants include CBRE, LendingTree, Alston & Bird and Hartford Insurance.

Located at 1415 Vantage Park Drive and 1120 S. Tryon St., the property is in Charlotte’s South End neighborhood, 1 mile from the city’s downtown. The Charlotte Douglas International Airport is 6 miles northwest.

Charlotte’s office sector faces headwinds

Charlotte’s office investment volume year-to-date as of September amounted to $193 million, according to the latest CommercialEdge office report. Assets in the metro changed hands for $150 per square foot on average, below the $171 national figure. The market’s vacancy rate at the end of the same month was 18.3 percent, 220 basis points higher year-over-year.

In one of the metro’s largest sales through September, Vanguard acquired Centene’s former office complex in Charlotte for $117 million. The financial services company will use the 700,000-square-foot space as the new site for its regional/satellite office. The 91-acre campus is scheduled to open next year.

Other notable deals included KHP Capital Partners’ purchase of The Johnston Building. Spaulding & Slyle Investments sold the 172,382-square-foot asset for $19.3 million in May.

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Red Rock Development wrapped up construction on a Class A, 519,792-square-foot speculative distribution facility in Gaston, S.C. The building is expandable to some 1.2 million square feet. Colliers markets the property for sale or leasing and provides property management services.

Last year, UMB Bank issued a $31.8 million construction note set to mature in 2026, CommercialEdge shows. The construction team included general contractor Miller Valentine Construction and designer MCA Architecture, as well as engineers Alliance Consulting and S&ME.

The facility features 40-foot clear heights—the sole property with such specification in the entire central South Carolina market—and 52- by 56-foot column spacing, as well as a 65-foot speed bay, 92 dock-high doors, 26 dock packages with mechanical levelers and four drive-in doors.

READ ALSO: Will CRE Market Conditions Improve?

Its truck court measures a depth of 185 feet with a 60-foot concrete pad, while the parking arrangements include 210 car and 135 truck spaces.

Located on roughly 50 acres at 201 Integrity Way in Calhoun County, the building is roughly 2 miles from U.S. Route 176 and Interstate 26—one of the three major interstates running through South Carolina which also connects to Interstate 95, providing access to the Eastern corridor. The Columbia Metropolitan Airport is some 12 miles northwest.

Colliers Managing Director Chuck Salley together with Vice President Thomas Beard and Senior Associate John Peebles are handling the property’s marketing efforts. The trio is also part of the Society of Industrial and Office Realtors.

Bringing online industrial facilities inside a 760-acre park

The newly constructed facility is inside the larger 760-acre Sandy Run Industrial Park which features tenants such as Amazon, Nephron Pharmaceuticals, Zeus, Starbucks and Home Depot. Also owned by Red Rock Development, the park can accommodate roughly 6 million square feet of industrial development.

Red Rock’s property at 201 Integrity Way was its second development at the industrial campus. The developer’s first, 497,952-square-foot speculative facility, debuted last year. UMB Bank also financed its construction with a $31.7 million note due to mature next year, CommercialEdge data shows.

Smart Warehousing—a fulfillment company operating as an extension of its clients—preleased the entire facility in 2022. After landing the tenant, Red Rock sold the property to LBA Logistics.

Columbia industrial deliveries slow, vacancy tightens

As of September, Greater Columbia’s industrial pipeline comprised 1.7 million square feet of product underway, according to a report by Colliers. Developers brought online 141,000 square feet of space during the third quarter, a substantial quarter-over-quarter decrease in industrial deliveries measuring 421,100 square feet.

As fewer products came online, industrial net absorption was positive at 396,400 square feet during the three-month period ending in September, the Colliers report shows. Last quarter’s supply glut caused a negative net absorption of 79,800 square feet from April to June.

Metro Columbia’s vacancy rate tightened, decreasing 46 basis points quarter-over-quarter and clocking in at 4.05 percent in September, the same source shows. However, the figure is higher compared to last year’s 2.85 percent during the same period.

The post Red Rock Completes 520 KSF South Carolina Facility appeared first on Commercial Property Executive.

This is the first development venture between Rockpoint and Greystar, a Charleston, S.C.,-based global real estate company focused on rental housing, logistics and life science projects. The firm manages and operates more than $320 billion of real estate in approximately 250 markets around the world.

Located on a 17.5-acre infill site at the intersection of Interstate 275 and Gandy Boulevard, the 622,200-square-foot Gateway Logistics Center is the largest industrial development in Pinellas County in more than two decades. It’s part of Greystar’s broader 93-acre project that also includes a 412-unit garden-style community.

READ ALSO: Why Things Are Looking Up for Ports, Supply Chains

Building B will encompass about 93,000 square feet with a depth of 180 feet. Buildings C and D will each comprise about 119,500 square feet with 200-foot depth. All three rear-load facilities will have 32-foot clear heights, ESFR sprinklers and include spec office space.

Greystar broke ground on Gateway’s first phase, totaling some 290,000 square feet, in 2022. Phase One’s Buildings A and G have been completed and are fully leased. Building H, a facility of 147,000 square feet, is slated for completion in spring 2025.

Greystar industrial assets

Greystar currently has more than 13 million square feet of industrial space in various stages of development around the U.S.

In April, the developer completed the first phase of Gateway Grand, a 2.1 million-square-foot industrial development in Mesa, Ariz. Situated in a Foreign Trade Zone, the project is Greystar’s first industrial foray in the state.

In August 2023, Greystar broke ground on the second and last phase of a five-building industrial development in San Marcos, Texas. The campus is 30 miles from Tesla’s giga factory and within 10 miles of two Amazon distribution centers.

Rockpoint investment activities

Earlier this month, Rockpoint and Portman Industrial sold Building D at Camp Hill Commerce Center, Campus 4, a 1.2 million-square-foot industrial property in Ridgeville, S.C., to Stockbridge. The warehouse came online last year and is occupied by Volvo in support of the car manufacturer’s nearby factory, which opened in 2018.

In January, Rockpoint raised $5.1 billion in aggregate equity capital commitments in the current fundraising cycle, including the close of Rockpoint Real Estate Fund VII with $2.7 billion in total equity capital. Fund VII targets opportunities in the U.S. across a range of real estate classes, including industrial, multifamily, single-family rental, hospitality and select office investments.

The post Rockpoint, Greystar Partner on Tampa-Area Project appeared first on Commercial Property Executive.

This shipping market continues to see positive demographic trends and upgrades. The port is investing more than $1 billion over the next five years to improve access and utilization of this critical transport infrastructure, which lifts 1.3 million 20-foot equivalent units (TEUs) annually.

CSX, Norfolk Southern and the Florida East Coast Railway are key railroad infrastructure support systems for the port’s traffic.

Jacksonville’s population of 1.7 million has grown four times the national average since 2013 and is expected to grow twice the national average over the next decade, according to Stonepeak.

Simpson Thacher & Bartlett LLP served as legal counsel, and JLL served as Stonepeak’s financial advisor.

Jacksonville’s logistics market is growing

According to Alex Redfearn of Redfearn Capital, Jacksonville’s logistics and industrial market is experiencing significant growth and has quickly become one of Southeast’s most dynamic logistics hubs.

He told Commercial Property Executive that Jacksonville is strategically located near major transportation networks, has a pro-business climate and has an expanding workforce.

“It has become a critical entry point for goods coming into the U.S.,” said Redfearn, whose company now owns over 1.4 million square feet in Jacksonville.

“Recent investments in port infrastructure, including enhanced container handling capabilities, have increased Jacksonville’s capacity to support higher international trade volumes.”

READ ALSO: How Infrastructure Investment Drives Industrial Space Growth

In August, Redfearn Capital acquired a 363,000-square-foot warehouse, Gran Bay Parkway at 12751 Grand Bay Parkway in Jacksonville from Brookfield for $27 million. The property is fully leased to Saddle Creek Logistics, an omnichannel, integrated supply chain company. It also recently secured $18.7 million to finance the acquisition.

Stonepeak’s portfolio expansion

The company has been busy expanding its footprint this year.

In September, Stonepeak acquired two logistics assets totaling 1.1 million square feet in Fort Worth, Texas, from institutional investors advised by J.P. Morgan Asset Management, using a $57 million loan from PGIM Real Estate for the acquisition.

In April, Stonepeak acquired a three-building, 1.7 million-square-foot rail-served fully leased logistics portfolio at CenterPoint Intermodal Center–Joliet/Elwood—the largest inland port in North America—from CenterPoint Properties. The deal went for $125 million, according to IPE Real Assets. The properties are in Elwood, Ill., at 26318-26634 S. Walton Drive, 21561 Mississippi Ave., and 26634 Mississippi Ave.

The post Stonepeak Buys 1.8 MSF Logistics Portfolio appeared first on Commercial Property Executive.

Stockbridge has acquired Building D at Camp Hall Commerce Center Campus 4, a 1.2 million-square-foot industrial property in Ridgeville, S.C.

Portman Industrial and Rockpoint, a Boston-based real estate private equity firm, sold the asset with the assistance of JLL.

Completed only last year, Building D can accommodate high-volume distribution operations and features 40-foot clear height, a cross-dock loading configuration, 208 dock-high doors, four drive-in doors and 84 dock levelers. There are 847 auto parking spaces and 804 trailer storage spaces. Volvo occupies the entire warehouse supporting the car manufacturer’s nearby factory.

Located at 2274 Volvo Car Drive, Building D has access to Interstate 26 and is 36 miles northwest of Charleston, S.C. The facility is within the 6,800-acre Camp Hall, a master-planned industrial park in Berkeley County being developed by Santee Cooper, South Carolina’s state-owned electric and water utility.

READ ALSO: How Infrastructure Investment Drives Industrial Space Growth

Stockbridge has about $33.6 billion of assets under management across the major property types, with an emphasis on U.S. residential and industrial assets. This spring, the company purchased a two-property, 540,478-square-foot Class A industrial portfolio in Southern California’s Inland Empire from Principal Asset Management for $142.3 million.

The JLL Investment Sales and Advisory team represented Portman Industrial and Rockpoint in the sale to Stockbridge.

Big names at the master-planned industrial park

Camp Hall is home to Volvo Car USA’s first U.S. manufacturing plant, which opened in 2018. In 2022, EV battery recycler Redwood Materials announced a $3.5 billion project at Camp Hall, which broke ground in early 2024.

DC Blox, a specialist in Tier III data centers, connectivity services and dark fiber, acquired 27.5 acres at Camp Hall in July 2023. The company plans to develop a multi-tenant data center on the site.

Palmetto Railways is also building a nearly 23-mile line from the Camp Hall Commerce Park to a connection with a CSX line near a Santee Cooper power generating station in Cross, S.C. The $185 million rail project, which will improve the park’s connectivity, will be completed by 2026.

Charleston industrial still suffers hangover from boom

Charleston, a port industrial market, had a vacancy rate of 17 percent in the third quarter of 2024, according to a JLL report. This is a consequence of ballooning supply as developers in the early 2020s anticipated higher post-pandemic demand which didn’t pan out in the climate of rising interest rates and uncertain business conditions.

As recently as 2022, the market’s vacancy was around 2.0 percent, the same report shows. That year, about 6 million square feet of space came online, while there was demand for more than 7 million. In 2023 however, the situation reversed. Supply was more than 7 million square feet, but demand had shrunk to about 4 million.

On the other hand, JLL points out, the current vacancy is concentrated, with only 10 percent of buildings market-wide in greater Charleston representing 93 percent of the vacancy, driven by changes in tenant trends. Smaller buildings are attracting more users, significantly outpacing larger ones.

The post Stockbridge Buys 1.2 MSF Industrial Asset Near Charleston appeared first on Commercial Property Executive.

Jamestown has signed a 49,000-square-foot lease at its Ponce City Market, a mixed-use property in Atlanta. CONA Services—the IT company supporting the Coca-Cola’s North American bottling system—will occupy a portion of the building’s sixth floor.

CBRE represented Jamestown, while Savills worked on behalf of CONA Services.

The tenant will relocate from 10 10th St. NE in Midtown Atlanta, where it currently occupies 32,600 square feet, according to CommercialEdge data. The firm’s new office will house approximately 180 employees, with room for future growth.

Jamestown redeveloped a historic Sears, Roebuck & Co. store and distribution center into the five-building Ponce City Market, bringing it online in 2014. The 3 million-square-foot mixed-use asset includes 821 residential units, about 327,000 square feet of retail and restaurants and 638,000 square feet of Class A office space.

READ ALSO: Growth in Office Tenant Costs Moderates

The newest additions at Ponce City Market were the 700,000-square-foot Scout Living, a hospitality living concept with 400 units, and 619 Ponce, the state’s first locally sourced mass timber office building totaling 110,000 square feet.

Common-area amenities include 8,000 square feet of bookable conference rooms, breakout areas, lounge space, on-site daycare and medical facilities, multiple health and wellness options, as well as The Roof at PCM.

Office tenants within the mixed-use development include Airbus, FanDuel and Capital One. Additionally, global accounting company Sage is set to move at 619 Ponce early next year.

Located at 675 Ponce de Leon Ave. NE in Atlanta’s Old Fourth Ward neighborhood, Ponce City Market is some 3 miles from downtown Atlanta. Hartsfield-Jackson Atlanta International Airport is within 13 miles.

Atlanta’s office vacancy rate on the rise

Atlanta’s office vacancy rate clocked in at 20.5 percent in September, up 180 basis points year-over-year and 1 percent above the national average, according to the latest CommercialEdge office report. However, the metro’s listing rate rose 7.1 percent in the same period, to $33.63.

In June, Newell Brands Inc. decided to move its headquarters at Building and Land Technology’s Concourse Office Park in Sandy Springs, Ga., by mid-2025. The company signed a 180,000-square-foot leasing agreement, expanding its footprint by about 20 percent.

Earlier this year, Piedmont Healthcare Inc. committed to 164,221 square feet at 271 17th St., a more than 540,000-square-foot office building. Lionstone Investments is the owner of the LEED Gold-certified tower.

The post Jamestown Inks Lease at 3 MSF Atlanta Mixed-Use appeared first on Commercial Property Executive.

SHIFT will open its first location in Atlanta on Nov. 19, within the industrial asset at 575 Wharton Drive SW in the South Fulton neighborhood.

The co-warehousing provider aims to meet growing local demand for flexible and collaborative workspaces. SHIFT South Fulton will offer more than 100,000 square feet in total, with various warehousing options for entrepreneurial individuals and businesses of all sizes.

SHIFT South Fulton has 67 rentable warehouse units that range from 300 to 5,000 square feet and can be used for storage or workspaces. It also has 13 office spaces. Membership amenities include access to meeting rooms, loading docks, security services, 24/7 entry, along with mail and package handling.

Pattillo Industrial Real Estate owns the industrial building, according to CommercialEdge data. The property came online in 1978 and underwent a full renovation in 2013. Pattillo acquired it in 2018 for $4.2 million.

SHIFT South Fulton is within 10 miles of downtown Atlanta. Major nearby thoroughfares include U.S. routes 70 and 78, as well as interstates 20 and 285. Hartsfield-Jackson Atlanta International Airport is less than 20 miles southeast.

Co-warehousing grows amid Atlanta’s rising industrial vacancy

Co-warehousing solutions are a growing niche within the industrial sector, as the number of small businesses and users with short-term needs is rapidly growing. Large industrial providers and investors are opening their own co-warehousing brands as well to meet this demand—such as Capstone Equities’ Portal Warehousing or The Rosenblum Cos.’ Launchbox Flexible Warehouse Suites, which opened its first location earlier this year in Latham, N.Y.

Atlanta’s industrial tenants have begun searching for smaller spaces, mirroring a trend that is ongoing throughout the entire Southeast, a recent industrial report from Avison Young shows. More than 9.4 million square feet of industrial space was leased in the third quarter, 54 percent of which involved deals smaller than 50,000 square feet.

The market’s vacancy grew to 9 percent in the third quarter this year, but a cooldown in development is projected to improve this rate in the coming months, the same source reveals. New construction starts were down more than 80 percent since 2021, which was the peak of activity in recent years.

The post SHIFT Sets Up Shop in Atlanta appeared first on Commercial Property Executive.

W. P. Carey has acquired I-64 Commerce Center’s Building A, a 1 million-square-foot cross-dock industrial facility in Shelbyville, Ky., from Flint Development. The Class A asset traded for $102 million, according to Shelby County public records. Colliers represented the seller.

I-64 Commerce Center is a two-building, 1.5 million-square-foot industrial campus that came online last year. In September, Flint sold the park’s Building B, a 477,600-square-foot facility, to Ford Motor Co. for $42.3 million, the same information source shows.

Both facilities have identical 40-foot clear heights, 54- by 50-foot column spacing and truck courts with 185-foot depth. Between them, the two buildings feature 154 dock-high doors and eight drive-in doors, as well as 507 car and 346 trailer parking spaces. An additional 133 dock-high doors may be added in the future throughout the pair.  

READ ALSO: Will CRE Market Conditions Improve?

Located at 139 Logistics Drive, the park is roughly 28 miles east of downtown Louisville, Ky., and about 38 miles from the Louisville Riverport Authority, whose transfer terminal is designed to handle more than 4 million tons of commodities a year at a rate of 2,000 tons per hour.

The Colliers team negotiating on behalf of Flint Development included Principals & Vice Chairs Jeff Devine and Steven Disse, together with Vice Chair Alex Cantu and Executive Vice President Alex Davenport.

Fully leased to a leading solar energy firm

Canadian Solar—one of the world’s largest renewable and solar energy companies—fully leased the 1 million-square-foot facility and plans to invest up to $500 million to develop its battery assembly capabilities. The property currently serves as a critical distribution node for the firm’s $800 million manufacturing facility in Jeffersonville, Ind.

The River Ridge Commerce Center facility in Indiana is Canadian Solar’s main U.S. manufacturing property, which is slated to be operational by the end of 2025. The factory will produce an annual output of 5 GW, which is equivalent to roughly 20,000 high-power modules per day.   

Louisville’s industrial vacancy drops

During the third quarter, the total industrial investment volume clocked in at $104 million in Greater Louisville across four transactions, according to a report by CBRE. One of the deals was Guess? Inc’s 506,440-square-feet sale-leaseback to Exeter Property Group for $40 million.

In the three-month period ending in September, the metro witnessed 3.6 million square feet of industrial leasing activity, bringing its vacancy rate to 3.4 percent—down 90 basis points year-over-year.

Meanwhile, developers brought online 283,500 square feet of industrial space in the metro, the same source shows. The market still had more than 3.7 million square feet in the pipeline as of September.

One facility that debuted earlier this year in Greater Louisville is Arvato’s 970,000-square-foot warehouse in Shepherdsville, Ky. The new warehouse expanded the German-based firm’s network in the metro to more than 2.4 million square feet.

The post W. P. Carey Pays $102M for Louisville Industrial Asset appeared first on Commercial Property Executive.

MWD Logistics occupies the entire Personal Place property, while Currey & Co. fully leased the Best Friend Road location. Both companies are well-established in metro Atlanta and their respective sectors, according to JLL.

Both properties came online in the 1970s. The 90,000-square-foot Personal Place facility in Morrow, Ga., features a rear-load configuration, 22-foot clear heights and a 100-foot truck court. The larger Best Friend Road asset, at about 163,500 square feet in Doraville, Ga., sports a cross-dock load configuration, 30-foot clear heights, a 120-foot truck court with a 50-foot concrete apron and six rail doors.

READ ALSO: Will CRE Market Conditions Improve?

JLL Director Jim Freeman, together with Senior Managing Directors Matt Wirth, Dennis Mitchell and Britton Burdette, represented the seller.

“It’s a good time to sell these assets, and it’s a good time to buy these assets,” Wirth told Commercial Property Executive. “Demand for infill industrial properties remains very strong due to the high barriers to entry for new development to accommodate tenants of this size.”

That dynamic creates a larger buyer pool and a liquid market, Wirth added. The scenario is also favorable for the buyer, as it is able to anticipate a high likelihood of pushing rent at future rollover, while their downside risk is pretty well protected.

Faropoint’s portfolio growth

Faropoint has been adding to its portfolio with gusto recently, generally through off-market deals focused on acquiring infill assets in high-growth markets. In June, the company closed its Industrial Value Fund III with $915 million in commitments, well exceeding the $750 million target.

In fact, Faropoint is no stranger to Greater Atlanta. In May, the investor acquired 4600-4680 Lewis Road, a 220,380-square-foot, three-building campus in Stone Mountain, Ga. The company now has nearly 2.3 million square feet of industrial space in the market, according to CommercialEdge data.

Atlanta industrial market one of nation’s strongest

Industrial properties are very much in demand in Greater Atlanta, with net absorption for the first three quarters of 2024 totaling a positive 6.9 million square feet, according to a Colliers report. Scheduled move-ins will mean additional occupancy gains heading into 2025.

At the same time, industrial development, which has been heated in Atlanta in recent years, is finally slowing down, approaching the five-year pre-pandemic average of 19.7 million square feet, the same report shows. 

The under-construction square footage, totaling 19.3 million, has dropped below 20 million square feet for the first time since 2018. Meanwhile, completions for 2024 thus far amounted to 19.4 million square feet, down 17.8 percent year-over-year.

Industrial rental rates in the Atlanta market increased 5.8 percent over the year at the end of the third quarter. And they are expected to continue to grow as supply-side pressure eases and steady demand persists across the metro.

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A joint venture between Glenstar Logistics and Columnar Investments has sold Tri-County 75, an 818,000-square-foot industrial park in Fort Myers, Fla. CBRE arranged the sale.

In 2022 the duo secured $97.5 million in financing from Square Mile Capital Management for the campus’ development. Ware Malcomb was the architect, while DeLisi Fitzgerald acted as civil engineer. Last year, the four-building speculative park debuted in an area where zoning allows for e-commerce, logistics, distribution, as well as light-to-heavy manufacturing.

At the time of the transaction, the park was 95 percent leased. The tenant roster consisted of Fortune 500 3PL company J.B. Hunt, plumbing and HVAC supplies distributor Ferguson Enterprises, as well as repair and maintenance company Mechanical One, among others.

READ ALSO: Will CRE Market Conditions Improve?

“We developed Tri-County 75 to meet the market’s demand for modern warehouses in close proximity to the region’s transportation arteries,” Brian Netzky, principal of Glenstar Logistics, told Commercial Property Executive.

“The quick leasing to Fortune 500 as well as local companies is a testament to Glenstar’s expertise in all aspects of industrial development, from financial sourcing to construction delivery,” Netzky added.

Tri-County 75 encompasses a total of 217 dock-high doors, 16 drive-in doors, as well as 814 auto and 165 trailer parking spaces. Three of the facilities feature a rear-load configuration with sizes ranging between 76,210 and 215,884 square feet. The remaining building has a cross-dock layout and measures 404,050 square feet. Across the park, clear heights range from 32 to 36 feet, while the truck courts vary between 130 and 185 feet.

Located on 72 acres at 6115-6150 Tri County Commerce Way, the infill, last-mile industrial campus is less than 7 miles from downtown Fort Myers. The Southwest Florida International Airport is roughly 15 miles southeast and the Port of Fort Myers Beach operates about 24 miles southwest. Interstate 75, which runs near Bonita Springs, Port Charlotte and Sarasota, is less than 1 mile away.

The CBRE team that brokered the sale on behalf of the joint venture included Vice Chairmen Jose Antonio Lobón, Frank Fallon and Trey Barry, as well as Senior Vice President Kris Courier and Vice President Royce Rose, to name a few.

A move toward industrial development

Glenstar Logistics—the industrial arm of Glenstar, an office and multifamily developer—announced one of its first forays into the industrial sector in February 2023. The developer has another project in the works in South Carolina, where Cherokee Commerce Center 85’s first facility is approaching completion. Upon full buildout, the development will total 3.6 million square feet.

At that time, the company expanded its focus to include industrial development on the backdrop of the sector’s growth in the Southeast, Michael Klein, Glenstar Properties co-founder & managing principal, previously told CPE.

Southeast Florida Coast industrial sales

According to a report by Colliers, the Southeast Florida Coast’s industrial sale volume for 2024’s second quarter was less than $50 million—down nearly 66 percent compared to the figure of almost $150 million registered during the first quarter.

Since the start of 2022, the market’s vacancy rate jumped 530 basis points and landed at 6.4 percent in June, the report goes on to show. Industrial deliveries nearly doubled from 650,000 square feet in the first half of 2022 to 1.2 million square feet in 2024, driving the vacancy trend.

Industrial absorption in the second quarter was positive at 217,233 square feet, Colliers goes on to show. Tri-County 75’s leases accounted for 76 percent of all the positive absorption registered during 2024’s second quarter.

The post Glenstar JV Sells 818 KSF Florida Industrial Asset appeared first on Commercial Property Executive.

LG Electronics USA has signed a 348,740-square-foot lease for Building 400 at Stonemont Financial Group’s Lakeland Commerce Center in Lakeland, Fla., a Tampa submarket.

The campus consists of four rear-load facilities that broke ground in July 2022 and came online in the first quarter of this year. Partners on the development comprised architecture firm Ware Malcomb and general contractor Frampton Construction, as well as civil engineer Kimley Horn.

Building 400 has 36-foot clear heights, 95 dock-high loading doors, four drive-in doors and a 130- to 185-foot truck court. Additionally, the distribution center has more than 200 parking spaces and 68 trailer stalls.

READ ALSO: 3 Strategies for Net Lease Industrial Success

Following the deal, the 905,550-square-foot campus is 51 percent leased. The other facilities range from 148,100 to 258,000 square feet and have 32-foot clear heights, as well as a total of 173 dock-high loading doors.

Located at 5135 Drane Field Road, the facility is less than 3 miles from the Lakeland Linder International Airport. Downtown Lakeland is within 12 miles northeast.

LG’s recent U.S. expansion

LG has been expanding its U.S. footprint in the last months. In June, Geis Cos. completed the company’s LG Chem Ohio, a two-building, 248,000-square-foot campus in Ravenna, Ohio. The complex consists of a 100,000-square-foot office building and a 148,000 square foot manufacturing facility.

Earlier this year, the firm also announced plans for the construction of a $5.5 billion battery manufacturing campus in Queen Creek, Ariz. Representing the largest single investment for a stand-alone battery manufacturing facility in North America, the development will consist of a 1.4 million-square-foot plant that will produce cylindrical EV batteries.

The post LG Leases 349 KSF Facility Near Tampa appeared first on Commercial Property Executive.

The St. Joe Co. has completed the Tallahassee Memorial HealthCare Medical Office Building, an 80,000-square-foot facility in Panama City Beach, in the Florida Panhandle.

The developer broke ground on the project representing the first phase of the FSU Health-Tallahassee Memorial HealthCare Medical Campus in January last year. Development partners included Tallahassee Memorial HealthCare and Florida State University. Robins & Morton served as general contractor.

Designed by HuntonBrady Architects, the four-story medical building is home to TMH Physician Partners – Primary Care, TMH Urgent Care Center, Coastal Tides Surgical Center and TMH Physician Partners – Cardiology. Pulmonary and orthopedic services are also available on-site.

READ ALSO: Outpatient Facilities Step Into the Spotlight

Located at 1002 N. Arnold Road, the facility is some 8 miles from the city’s downtown and 12 miles from the Northwest Florida Beaches International Airport.

The Tallahassee Memorial HealthCare Medical Office Building is larger than most current medical office developments which are less than 50,000 square feet, according to a recent Marcus & Millichap report. Furthermore, new construction is hindered by material shortages and labor costs, so future projects could involve more traditional office conversions.

Part of a bigger campus

The FSU Health-Tallahassee Memorial HealthCare Medical Campus will include a hospital featuring an emergency center and other inpatient services, including surgery, cardiology procedures and imaging. Robins & Morton expects to break ground on that development in the following months and completion is expected by the end of 2027.

The 87-acre development will also feature the 140,000-square-foot FSU Health Tallahassee Center, a medical and research-related facility that was funded with a $125 million grant from the Florida Legislature. This project broke ground last September and is slated for delivery in 2026.

The post St. Joe JV Completes Florida Panhandle MOB appeared first on Commercial Property Executive.

Smoky Hollow is situated within Raleigh’s Glenwood South neighborhood and comprises The Line, a 283-unit Class A apartment community, and 421 N. Harrington, a highly amenitized 229,000-square-foot office building. The latter features approximately 40,000 square feet of ground-floor retail, including a mix of experiential restaurants and shops.

The financing from Barings has a five-year term. JLL’s Travis Anderson, Colby Mueck and Warren Johnson advised the sponsorship on the financing.

The asset includes 778 parking spaces and four elevators. According to CommercialEdge, the market has a population density of 3,450 people per square mile and a compound population growth rate of 1.2 percent.

Raleigh’s office market is transforming

“Today’s office tenants are gravitating toward energized and activated mixed-use destinations that prioritize connectivity, entertainment and hospitality, as well as offer the long-term appeal of having a curated mix of retail and restaurants right outside the office,” Kimarie Ankenbrand, managing director at JLL, told Commercial Property Executive.

“Raleigh’s office market is entering a transformative period, driven by the elongated pause of new development breaking ground and robust tenant demand for the newer and activated product,” Ankenbrand said. “Last quarter, we saw some of the strongest levels of leasing activity in highly amenitized, Class A office buildings. Looking ahead, we expect competition for existing Class A and trophy office space to increase as the market awaits the delivery of new product.”

According to Arnold Siegmund, landlord representative principal at Avison Young, mixed-use properties with Class A office space like Smoky Hollow continue to perform extremely well overall as tenants are looking to be in the center of the action with everything at their fingertips.

READ ALSO: Why the Office-to-Lab Conversion Trend Will Last

“The Raleigh office market has also benefited from North Carolina’s population boom, one of the five fastest-growing states in the country, with the Raleigh-Cary population increasing by 0.7 percent over the past year,” Siegmund said.

Siegmund added that the Class A office in the Raleigh-Durham market is taking center stage as trophy assets seek 65.1 percent more in rent than Class A assets for marginally better amenities and greater product quality.

“Smoky Hollow benefits from a high-quality local landlord, direct access to various retail and entertainment options to attract workers into the office, and a desirable location near Raleigh’s urban core and extensive workforce,” Siegmund said.

The transactions highlight the strength of the economy in the Raleigh market, according to Marc DeLuca, regional president & CEO, Eastern U.S., for KBS.

“Growing companies are gravitating toward high-quality office space with active retail, restaurant and entertainment to support their efforts to attract and retain the best employees,” DeLuca told CPE.

“Well-located, top-tier commercial office properties provide growing companies with a strategic advantage when meeting the workplace needs of both new and current employees.”

A busy year for office leasing

The deal continued a busy year of office leasing in Raleigh.

In late September, KBS Realty Advisors and Kane Realty Corp. inked two leasing agreements totaling 31,659 square feet at Bank of America Tower, a Class A office building.

Intelligent asset management solutions provider Brightly Software by Siemens signed a 28,658-square-foot agreement. The company will establish its new global headquarters on an entire building floor, also home to Siemens Industry Inc.

In late July, a joint venture between Edgewater Ventures and Northridge Capital purchased Landmark at North Hills, a two-building Class A office campus totaling 166,653 square feet.

JLL Capital Markets negotiated on behalf of the seller, BGO, which worked on behalf of an institutional investor. According to CommercialEdge, the office buildings changed hands for $21.3 million. The same source shows that Sun Life Financial originated a $14.8 million acquisition loan for the buyer.

Landmark at North Hills includes two five-story office properties at 4601 Six Forks Road, connected via a sky bridge. The office properties have four passenger elevators and 830 vehicle parking spots. Initially completed in 1984, the office property underwent significant renovations in 2014 and now features recently upgraded amenities and a technology-enabled central courtyard.

The post Kane Realty JV Lands $134M Refi for Mixed-Use Development appeared first on Commercial Property Executive.

Master-planned for an eventual total of about 1.3 million square feet, the park seeks to attract industrial, flex, logistics, GMP and life science tenants. It’s being developed on 160 acres on Old Hamlin Road near Oxford Road and the future North Durham Parkway, providing easy access to Highway 70 and I-85.

Phase 1 consists of four shallow-bay and warehouse buildings whose construction financing was provided by U.S. Bank.

Of the planned nine to 10 buildings, those in Phase 1 (Buildings D through G) are in the park’s southeastern portion and total about 394,800 square feet. They range widely in size, with spaces as small as 4,800 square feet available.

Building D is 103,200 square feet and Building E is 74,400 square feet; both have 40- by 40-foot bays and a 24-foot clear height. Building F is 192,000 square feet, with 50- by 60-foot bays and a 32-foot clear height. Building G is 25,200 square feet, with 30- by 40-foot bays and a 24-foot clear height.

READ ALSO: Lower Rates Signal Increase in Industrial Sales

Welcome Group’s collaborators in the project include RW2 Development Co., of Greensboro, N.C., which is handling entitlements, development and project management. Other local consultants involved in the project are Choate Construction, civil and environmental engineers Withers Ravenel, Maurer Architecture and general contractor Sullivan Eastern.

The campus will eventually feature extensive paved and mulched paths among its amenities. Colliers International is handling leasing.

Raleigh-Durham’s strong industrial demand

After a slow start to the year, activity in the Raleigh-Durham industrial market picked up substantially, as positive net absorption hit its 10th straight quarter, according to a second-quarter report from Colliers.

About two-thirds of the 758,000 square feet delivered in the second quarter was preleased, helping to pull the overall vacancy down to 4.6 percent. And even though the development pipeline has risen to 3.2 million square feet, most of it speculative, Colliers expects ongoing strong demand to tighten vacancy further.

One of those preleased buildings was Scannell Properties’ first building in its master-planned Durham 85 Industrial Park. On completion, the 249,000-square-foot asset was fully leased to Life Science Logistics.

The post Welcome Group Wraps 1st Phase of Durham Industrial Park appeared first on Commercial Property Executive.

Some notable office deals closed in the metro in the first eight months of the year, the high sale prices pushing Nashville above some significant southern markets. Additionally, despite the growing vacancy rates trend across gateway and high-volume secondary markets, Nashville’s has shown signs of improvement so far in 2024.

As office inventories struggle with rising vacancy, owners are looking to offload assets, residential conversion being an emerging trend across the U.S. While Nashville is not among the nation’s top markets for office adaptive reuse, there are some opportunities. The Conversion Feasibility Index, a new tool developed by CommercialEdge, shows which markets have strong office-to-residential repurposing fundamentals, based on property-level scores and building classifications.

Significant projects added to Nashville’s pipeline

As of August, Nashville’s office market had 2.1 million square feet of space underway across nine properties, accounting for 3.6 percent of existing stock. The rate was way above the national figure of 1.0 percent as well as those recorded in most similar markets, such as Phoenix (0.4 percent), Houston (0.7 percent), Atlanta, (0.9 percent), Charlotte (1.5 percent) and San Diego (3.1 percent). Only Austin outperformed Nashville, with 4.1 percent.

In terms of space underway, Nashville outperformed Philadelphia (2 million square feet), Atlanta (1.9 million square feet), Houston (1.7 million square feet) and Charlotte (1.1 million square feet.

The market’s largest office development is the Pinnacle Tower at Nashville Yards, a 650,000-square-foot project that will rise 34 stories at 500 Platform Way in downtown Nashville. The project, developed by Southwest Value Partners, broke ground in 2021 and is expected to come online in 2025.

In February, Equitable Property Co. purchased a 44-acre site for the development of a mixed-use project that will include two medical office buildings totaling 400,000 square feet, up to 250,000 square feet of retail space, a 240-key hotel and 75 townhomes. Phase I of the project dubbed Sewart’s Landing is taking shape in in Smyrna, Tenn., with delivery expected in the first quarter of 2025.

Year-to-date through August, developers broke ground on 352,000 square feet of office space, while only 202,000 square feet were delivered across two properties.

Completed properties included Educational Media Foundation’s new headquarters, a 170,000-square-foot, five-story office building at 2000 Reams Fleming Road in Franklin, Tenn., that came online in April, and The Office Lofts at Finery, a 49,000-square-foot, six-story development at 1 Merritt Ave., that opened in February. The latter is part of The Finery mixed-use project, developed by Hines Interests.

Growing office investments

A total of 951,316 square feet across nine office properties traded for $195 million in Nashville through the first eight months of the year. The amount marked a 31 percent year-over-year growth, putting Nashville ahead of similar metros such as Atlanta (29 percent) and Phoenix (26.7 percent), but behind Charlotte (32.9 percent).

In terms of sales volume, the market outperformed Orlando ($126 million) and Charlotte ($149 million). Dallas led with $812 million, followed by Austin ($644 million).

Notable office deals in Nashville included the $84.5 million acquisition of Truist Plaza, a 338,000-square-foot building at 401 Commerce St. Menlo Equities purchased the 13-story property from Eakin Partners in April.

Another significant transaction was Boyle Investment Co.’s $48.8 million purchase of The McEwen Building, a 175,262-square-foot, seven-story office asset in Franklin, Tenn. KBS sold the 2014-built property and the deal was part of the buyer’s expansion strategy in the Cool Springs submarket.

Nashville office assets traded at an average sale price of $205 per square foot, above the national average of $173 per square foot. Properties were pricier on average than those in Houston ($103 per square foot), Dallas ($125 per square foot), Charlotte ($133 per square foot) and Atlanta ($146 per square foot). Austin remained significantly more expensive, with prices at $376 per square foot.

Nashville’s office vacancy rates are dropping

Nashville’s office vacancy has been on a downward trajectory since the start of the year—from the 17.0 percent recorded in January to the 16.0 percent registered in July. As of August, the metro’s rate clocked in at 15.6 percent, down 60 basis points year-over-year.

The figure was below the national average of 19.4 percent. Meanwhile, similar metros such as Orlando (16.8 percent), Charlotte (18.6 percent), Atlanta (21.3 percent) and Dallas (22.9 percent) recorded higher values.

One of the most impactful announcements that stirred the Nashville office market involved software company Oracle. The Austin-based firm plans to move its world headquarters to the city, having already secured a 65-acre site in the East Bank section in 2021. While waiting for the completion of its $1.2 billion campus, Oracle will be leasing office space.

The coworking sector holds steady

Nashville’s coworking sector featured 1.8 million square feet of flexible office space in August, outpacing Charlotte (1.3 million square feet) and Orlando (1.1 million square feet). However, the volume was small when compared to Houston’s 4.3 million square feet.

The coworking space as percentage of all leasable office space reached 3.2 percent, one of the highest rates among similar markets and way above the national average of 1.8 percent. The metro outperformed Austin (1.6 percent), Charlotte (1.7 percent) and Denver (2.2 percent), but lagged Miami (3.7 percent).

The largest coworking operator in the metro was Spaces, with 218,000 square feet, followed by E|spaces (217,212 square feet) and Regus (202,940 square feet). Serendipity Labs (90,662 square feet) and Expansive (80,111 square feet) occupied the fourth and fifth position, respectively.

The post Nashville’s Office Vacancy Drops, Prices Remain High appeared first on Commercial Property Executive.

Carbon solutions manufacturer and supplier Birla Carbon has selected Orangeburg County to establish the company’s first South Carolina facility.

It will construct a 435,000-square-foot manufacturing building at the Tri-County industrial site in Orangeburg as part of a $1 billion investment that will create 124 jobs. The plant is expected to be online in 2026, and jobs will be posted in 2025.

The new operation will supply anode active materials enough to support more than 40 gigawatt hours battery plants.

READ ALSO: Why Light Industrial Properties Will Continue to Shine

Birla Carbon’s planned development will be a next-generation, continuous synthetic graphite production facility. Its products are designed to improve the performance of tires, specialty blacks and mechanical rubber goods.

The first phase will produce 25,000 tons of synthetic graphite annually to meet the anticipated demand in the electric vehicle, energy storage and defense sectors.

A leading auto manufacturing hub

“South Carolina’s manufacturing industry has blossomed over the past few years with heightened inbound migration from the automotive and transportation sector due to easy port access, favorable tax incentives and strong labor pools,” Alex Irwin, Avison Young’s senior vice president of industrial & investment services in Charleston, told Commercial Property Executive.

Birla Carbon currently operates 17 manufacturing facilities in 14 countries.

“Birla Carbon’s foray into the South Carolina market will allow them to provide product support for the 65+ automotive OEM companies with operations in the region, including Volvo, Mercedes-Benz, Bosch and Cummins.”

Avison Young reported in the second quarter that Charleston’s manufacturing labor pool has expanded by 30.8 percent during the past seven years, with approximately 34,600 employees. As a result, the industrial property subtype has thrived. It is notably one of the top-growing manufacturing markets in the U.S., with the automotive & transportation industry as the driving sector.

Since 2022, nearly 80 percent of the new inventory delivered has been big boxes, with sizes exceeding 250,000 square feet, and a mere 2 percent has been small bays, measuring between 20,000 and 99,000 square feet. These smaller spaces have a total vacancy rate of 3.4 percent, while the market’s overall vacancy rate is 13.8 percent, Avison Young reported.

The market continues to grow. In the second quarter of 2024, Charleston added the largest amount of new industrial deliveries since the fourth quarter of 2022. About 1.3 million of the 3.3 million square feet of newly delivered space consists of the largest speculative build in market history.

The post Carbon Products Firm Brings $1B Plant to South Carolina appeared first on Commercial Property Executive.

Nuveen Real Estate has sold 701 Brickell, a 685,279-square-foot trophy office tower in Miami. Morning Calm Management and its partner acquired the Class AA asset for $443 million in an all-cash deal. JLL represented the seller and procured the buyer.

The deal marks the second-largest office transaction in Florida’s history. The largest was Ponte Gadea’s $540 million purchase of the Southeast Financial Center, a 1.2 million-square-foot trophy tower in Miami’s Central Business District. JLL brokered that 2016 transaction as well.

READ ALSO: CRE Sentiment Index Hits All-Time High

According to Bloomberg, Nuveen tapped JLL for 701 Brickell’s sale in April. Back then, the brokerage firm expected the high-rise to fetch upward of $500 million. Just last month, the same source reported that Elliott Investment Management neared a deal to purchase the asset for $450 million.

A glimpse inside the trophy tower

Nuveen Real Estate—formerly TIAA Real Estate—acquired the 1986-built 701 Brickell in 2002. MetLife Real Estate Investment sold the asset for $172 million, CommercialEdge data shows. In 2016, the property became subject to a $184 million loan issued by Northwestern Mutual, set to mature in 2026.

In 2022, Nuveen wrapped up the office tower’s renovation efforts. The company earmarked $30 million in capital expenditures, while JLL and Origin Construction led the overhaul. As part of the revamp, the main lobby received a facelift and the crew installed a touchless entry system. Further additions included a new gym, tenant-only lounge and conference center, among other amenities.

The tower rises 33 stories and features floorplates of approximately 22,120 rentable square feet. In line with green building trends, 701 Brickell received LEED Gold, Wired Gold, Fitwel and Energy Star certifications. The tenant roster includes law firm Holland & Knight—which renewed its commitment to 121,032 square feet of office space last year—as well as Bank of America and BlackRock.

Located inside Miami’s financial district and neighboring the downtown area, the building is next to 801 Brickell, which Nuveen sold last year for $250 million to a joint venture between Monarch Alternative Capital and Tourmaline Capital Partners.

Nuveen Senior Director Charles Russo spearheaded the sale efforts. The JLL Capital Markets team representing the seller included Executive Managing Director Manny de Zarraga, Senior Director Matt McCormack, Managing Director Ike Ojala and Senior Managing Director Hermen Rodriguez. Senior Managing Director Mike McDonald provided the team with support at a national level.

Miami’s office assets outprice national averages

The office transaction volume in metro Miami clocked in at $543 million year-to-date as of August, according to a report by CommercialEdge. Assets changed hands at $348 per square foot, above the national average of $173 per square foot.

Meanwhile, the metro’s asking office rents grew by 11.1 percent over the year—overshadowing the national average of 2.7 percent—and landed at $32.78 per square foot, the same source shows. Magic City’s top listing was 701 Brickell at $140 per square foot.

Miami’s office vacancy rate increased by 80 basis points during the same period, climbing to 14.1 percent in August, However, the national rate spiked by 200 basis points year-over-year, settling at 19.4 percent that month.

The metro’s office inventory is slated to rise further as OKO Group and Cain International will bring online 830 Brickell, a 57-story, 638,355-square-foot Class A project in Miami’s financial district. In July, the duo secured a $565 million permanent loan originated by TYKO Capital to refinance previous debt. Completion is expected this quarter.

The post Nuveen Sells Miami Trophy Tower for $443M appeared first on Commercial Property Executive.

Foxfield and AEW Capital Management have signed a full-building, 200,000-square-foot lease at Sugarloaf Logistics Hub, a 2.2 million-square-foot master-planned industrial development in Lawrenceville, Ga., within metro Atlanta.

Souto Foods, a subsidiary of Alex Lee, committed to the space, which also includes a cold storage element. The food distributor plans to invest $28 million in the site and expects to create 70 new jobs.

JLL and OnPace Partners worked on behalf of the landlords, while NAI Brannen Goddard represented the tenant.

Developers broke ground on the first phase earlier this year. It is planned to total 1.1 million square feet of industrial space across three buildings. The owner is pursuing LEED certification through the usage of recycled concrete, energy-efficient frameworks and environmentally conscious practices.

READ ALSO: Why 2024 Is the Year to Invest in Industrial Real Estate

The three buildings will have a total of eight drive-in doors, 189 dock-high doors, as well as 569 and 225 car- and trailer-parking spaces. Clear heights will range between 36 and 40 feet, while the truck courts will measure 185 feet for each facility.

Located at 5030 Sugarloaf Parkway, Souto Foods’ upcoming building is roughly 27 miles northeast of downtown Atlanta, as well as about 4 miles from U.S. Route 29 and Interstate 85. The Gwinnett County Airport is some 6 miles east.

JLL Executive Managing Director Reed Davis alongside Stephen Bridges, partner at OnPace, led the broker team on behalf of the landlords. NAI Brannen Goddard Managing Director Bill Kee spearheaded the negotiations on behalf of the tenant.

Office-to-industrial redevelopment

Foxfield and AEW purchased the six-building, 740,000-square-foot office campus in 2022 with plans to reshape the site into a seven-building, 2.2 million-square-foot industrial park, set to include warehouse, industrial and logistics space. Prior to the sale, Cisco owned and occupied the campus.

Additionally, the 290-acre, master-planned development would include some 800 residential units and five retail pad sites. Concurrent with the lease, the developer duo also sold a 13-acre, multifamily-zoned parcel to Westplan Investors.

Atlanta industrial leasing improved in the second quarter

Industrial demand picked up steam in metro Atlanta during the second quarter. Leasing activity increased 11.6 percent compared to the first three months of the year, according to a report by Cushman & Wakefield.

Leasing activity totaled nearly 6.4 million square feet from April to June, the same source shows. Although most transactions encompassed small deals, the number of signed leases north of 300,000 square feet outshined the one registered during any of the past five quarters.

Metro Atlanta’s second quarter absorption clocked in at 3.4 million square feet—only six of the 83 markets tracked by Cushman & Wakefield broke the 3.0 million square feet mark. The delivery of Target’s build-to-suit, 1.4 million-square-foot facility aided the metro’s absorption figure.

The post Foxfield, AEW Land 200 KSF Industrial Tenant in Metro Atlanta appeared first on Commercial Property Executive.

The new owner will take on the responsibility of a $164 million mortgage. CommercialEdge data shows that back in 2019, WPG secured a $180 million CMBS loan originated by Bank of America through Wells Fargo Bank, with a 10-year term and a fixed interest rate of 4.86 percent.

Built in 1999, Waterford Lakes Town Center comprises nine buildings across 79 acres. The property has potential for increased revenue as current leases, which have below-market rates, expire. The growing demand for space from high-end retailers could also help the new owner improve the tenant mix and boost long-term rent growth.

At the time of the deal, Waterford Lakes Town Center was 99 percent leased. The retail center boasts a high-quality mix of national and regional retailers such as Super Target, TJ Maxx, Victoria’s Secret, Ross Dress for Less, Best Buy, Panera Bread, Bath & Body Works, Starbucks, Lululemon, Nike, Shake Shack, Barnes & Noble, Sephora and Ulta Beauty, among others.

Located at 331 North Alafaya Trail, Waterford Lakes Town Center is within Orlando’s West University submarket. The shopping center serves approximately 228,000 individuals within a 50-mile radius, with an average household income of $111,000, according to Kimco. Due to its location in one of the fastest-growing metro areas, the property recorded around 13.6 million annual visits.

READ ALSO: Unlocking the Sun Belt’s Retail Potential

 At the beginning of this year, Kimco acquired New York-based RPT Realty in an all-stock deal worth $2 billion. The acquisition added 56 open-air centers totaling 13.3 million square feet of leasable space, to Kimco’s existing portfolio.

Kimco’s acquisition of Waterford Lakes Town Center brings the company’s total investment for the year to over $560 million. This addition enhances Kimco’s stronghold in the Orlando market, expanding their portfolio to 18 centers with more than 4 million square feet of leasable space as of the end of the second quarter of 2024.

Orlando’s steady retail demand

Orlando’s retail demand has been strong due to its growing population and economy. In the second quarter of this year, around 8,784 square feet of new retail space was completed and approximately 913,594 square feet of retail space was under construction, according to a recent Cushman & Wakefield report.

Despite economic challenges and evolving retail trends, the vacancy rate clocked in at 3.4 percent. The average asking rent reached $28.92 per square foot, a 4.8 percent increase from the previous year, the same report shows. Tight market conditions have led to rental rate growth in Orlando that is double the national average.

The post Kimco Pays $322M for Orlando Lifestyle Center appeared first on Commercial Property Executive.

KBS Realty Advisors, together with Kane Realty Corp., has inked two leasing agreements totaling 31,659 square feet at Bank of America Tower, a Class A office building in Raleigh, N.C.

Intelligent asset management solutions provider Brightly Software by Siemens signed a 28,658-square-foot agreement. The company will occupy an entire floor at the building, where it will establish Siemens Industry Inc.’s new global headquarters.

The other deal involves Eva Garland Consulting’s expansion agreement for 3,000 square feet, resulting in a total footprint of approximately 15,000 square feet at the property.

Other notable tenants at the 300,322-square-foot tower include Spectrum Cos., Newmark, Merrill Lynch, Regus, Bank of America and KPMG.

READ ALSO: Innovative Solutions for Return-to-Office Challenges

KBS Realty Advisors developed the 18-story office building in joint venture with Kane Realty Corp. The project was funded by a $58.8 million construction loan provided in 2014 by Bank OZK, while the property is currently subject to a $79.5 million loan issued by New York Life Insurance Co., according to CommercialEdge information.

Completed in 2015, The LEED Gold certified property features a conference center, 28,647-square-foot floorplates, six passenger elevators, 10,000 square feet of first-floor retail space and 523 covered parking spots across six floors. Additionally, the building includes two restaurants on the ground-floor level, a coffee bar, a tenant lounge, motorcycle parking, bike storage and EV charging stations.

Located at 4242 Six Forks Road, Bank of America Tower is close to multiple bus stops and nearby dining and retail options. The property is within the city’s North Hills district, 5 miles from downtown Raleigh, 14 miles from Raleigh-Durham International Airport and 24 miles of Durham, N.C.

Large deals in the area

In April, IXL Learning expanded its headquarters by 22,309 square feet at 1600 Perimeter Park Drive in Morrisville, N.C. The deal brought the company’s entire commitment to 90,089 square feet, fully occupying the building. The property is part of a 3 million-square-foot master-planned development, owned by Mapletree US Income Commercial Trust.

That same month, Railinc leased 56,371 square feet at a Class A office campus in Cary, N.C. The company will relocate at 11000 Weston Parkway in the first quarter of 2025. The property is part of Lakeview at Weston office complex, owned by Highwoods Properties.

The post KBS JV Inks Office Deals at Raleigh Tower appeared first on Commercial Property Executive.

Benderson Development has purchased The Shops at Midtown Miami, a 347,740-square-foot, grocery-anchored retail center in Miami. SITE Centers sold the asset for $83.8 million in a transaction arranged by JLL.

It was only a few days prior to this transaction that Benderson acquired Cypress Trace, another grocery-anchored center, in Fort Myers, Fla., also from SITE Centers. The firm’s Sunshine State portfolio also includes Carillon Place in Naples, Glengary Shoppes in Sarasota and Linton Commons in Delray Beach, among others.

The Shops at Midtown Miami, up close

Built in 2006, The Shops at Midtown Miami was 98.3 percent leased at the time of sale. Tenants include national retailers such as Target, Ross Dress for Less, Dick’s Sporting Goods, Marshalls and HomeGoods.

The center occupies more than 18 acres at 3401 N. Miami Ave., features 2,860 structured garage parking spaces and attracts more than 3.4 million annual visitors. The location is proximate to interstates 95, 195 and 395, as well as Miami Beach, the city’s downtown, the Design District and Brickell.

JLL Senior Managing Director & Co-Lead Danny Finkle and Vice President Kim Flores, together with Senior Directors Eric Williams and Jorge Portela, led the Capital Markets Investment and Sales Advisory team that represented the seller.

Sunny climate

“The South Florida market remains high on the target list for investors across all asset classes, based on the high barriers to entry, the continued employment and population strength,” Finkle told Commercial Property Executive. “Retail has been a prime beneficiary as retail fundamentals in the region are exceptional and limited high-quality sale offerings come to market. In particular, South Florida’s most infill retail centers are highly coveted and are driving a material pricing premium,” he added.

In late July, the partnership of SJC Ventures and Nuveen Real Estate received a $69.4 million loan, arranged by CBRE Capital Markets, for the development of an 83,300-square-foot shopping center in Doral, Fla., that is already 69 preleased. Construction is scheduled to begin this fall.

The post Benderson Grows South Florida Footprint—Again appeared first on Commercial Property Executive.

The acquisition brought the West Palm Beach-based private equity firm’s portfolio to more than 13 million square feet across 75 properties.

The deal is the second of 2024 for this buyer and seller. In a $42 million deal that closed in January, Sterling acquired SITE’s Marketplace at Highland Village, a 205,926-square-foot retail center located in the Dallas suburb of Highland Village, Texas.

Sterling’s current purchase drew on funds from Sterling Value Add Partners IV LP, an investment vehicle that includes $600 million of equity. SVAP IV, which closed in June, was oversubscribed by $100 million. Investors range from family offices and endowments to pension plans.  

Sterling’s scoop-ups

The largest property in Sterling’s newly acquired portfolio is Village at Stone Oak, a 476,371-square-foot power center in San Antonio. The property is anchored by a mix of clothing and pet accessory retailers, including HomeGoods, Ross, Petco, DSW and ULTA Beauty. An adjacent Super Target is a shadow anchor. Fronting U.S. Route 281, the property is 16 miles north of downtown San Antonio and within a 5-mile radius of 170,000 residents.

READ ALSO: FTI Experts’ Hub: To Buy or to Lease? That Is the Question

The second-largest property is Presidential Commons, a 264,271-square-foot grocery-anchored center in Snellville, Ga., an eastern suburb of Atlanta. According to CommercialEdge information, SITE purchased it in 2007. Anchored by Kroger and located at 1630 Scenic Highway North, the property also has Burlington, Five Below and Aaron’s on its roster. A population of approximately 193,000 is within 5 miles of its location.

Fairfax Towne Center is the smallest of the bunch, a 253,392-square-foot property located roughly 18 miles outside of Washington D.C., in Fairfax, Va. CommercialEdge data shows that SITE bought the asset for $60.2 million in 2021. Safeway is the grocery anchor, and the retail center also features a T.J. Maxx and a Regal Cinemas.

SITE’s sales binge

The $180.5 million portfolio deal with Sterling is the latest in SITE’s dispositions of open-air retail properties. Since the beginning of the third quarter, the REIT has sold 13 properties for a combined $714.3 million, according to Yahoo Finance.

Just this week, SITE sold Cypress Trace, a 280,000-square-foot grocery-anchored asset in Fort Myers, Fla., for more than $40 million. And in August, the REIT made another seven-figure-square-foot disposition, when it sold a three-property portfolio to CTO Realty Growth for $137.5 million.

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