To see how tenants are rushing to get their hands on as much industrial space as possible in South Florida, take a look at how tire distributor Tire Rack got what it needed to grow in the region. In the process, it ended up with one of the biggest industrial leases in Florida's Broward County in 2021.
The company originally looked at taking a 170,000-square-foot space in the Bridge Point 595 industrial park in Davie, near Fort Lauderdale, in a roughly 290,000-square-foot industrial building recently completed by Bridge Development Partners. But it needed more space, and to its dismay, another tenant had taken the rest of the building.
Within a matter of weeks after agreeing to take the 170,000 square feet, however, the other tenant decided to relocate to a different part of the industrial park, opening up the entire building for Tire Rack, which leased the full space.
Why it matters: The deal gave Tire Rack, which said in December 2021 it was being acquired by Discount Tire, a stronger presence in the South Florida market needed for further growth.
It also reflects the demand for industrial space in fast-growing U.S. markets such as Florida, where tenants are trying to get as much space as they can get their hands on in a competitive leasing environment.
Brokers: Fort Lauderdale-based Berger Commercial Realty's Joseph Byrnes and Keith Graves represented the landlord in the deal.
What they're saying: "I guess if the building was bigger, they would have taken all of that," said Joseph Byrnes, senior vice president of Berger Commercial Realty, who was involved in the deal.
After the deal was reached, NASCAR driver Austin Cindric, sponsored by Discount Tire, won the Daytona 500, capping off another victory for the tire company. "It has been a nice, clean sweep," Byrnes said.
CoStar's Impact Awards highlight the commercial real estate transactions and projects that have transformed their markets over the past year. The winners are chosen by independent panels of industry professionals who work in the markets they judge. A list of judges can be found here and the criteria for selecting winners can be found here.