"Broker Helps Shipping
Firm Cut 30 percent Off Its Lease
While Moving Into A Larger Space"
Click photo for enlarged View:.
Use your browser's
BACK button to return to this page:
Daily
Business Review:
December 31, 2003
Volume 78, Number 142
Dealmaker:
Broker
Stephen DiGiacomo
The Deal: DiGiacomo represented NNR Aircargo Service (USA), a
logistics division of the Japanese transportation company, in the
consolidation and expansion of its Latin American headquarters in
Miami. NNR Aircargo leased an 85,992-square-foot building in the
Beacon Centre industrial park west of Miami International Airport.
Codina Realty Services represented the park's landlord, AMB Property
Corp., in the 64-month lease worth about $2.6 million.
The Details:
After a six-month search, NNR Aircargo was able
to upgrade the quality of its office and industrial space while
reducing its rent with the Beacon Centre lease.
In the deal announced Dec. 24, NNR Aircargo agreed to pay a starting
rent of $5.50 per square foot for industrial space at 8578 NW 23rd
St. The logistics company had paid about $8.00 per square foot for
its combined 69,000 square feet at two facilities in America's
Gateway Center. "They got bigger and better space," said
DiGiacomo,
who has represented two other Japanese companies with their Miami
real estate deals. "They got a 30 percent reduction in rent, and
they consolidated their two locations into one."
NNR Aircargo is the latest tenant to capitalize
on the soft industrial space rental market in Miami-Dade County's
Airport West, the hub for South Florida's international trade
industry. The industrial rental market has struggled for the past
three years because of the economic downturn in several Latin
American and Caribbean countries that are the key trade partners for
South Florida. As these countries have bought less from the United
States, the Miami exporters responsible for shipping the products to
Latin America have been forced to slash the size of their local
staff and facilities. The combination has dragged down rental rates
for landlords and prompted several existing tenants to revisit the
terms of their leases,
DiGiacomo said.
Background: DiGiacomo is president of
DiGiacomo Group, an eight-person commercial brokerage based in
Doral.
DiGiacomo has spent a majority of his 20-year real estate
career focusing on the Airport West industrial market.
Quote: "The savvy tenants are hiring
somebody to either renegotiate or find them a new lease,"
DiGiacomo
said. "But the bottom line is, reduce your costs now while the
rental market is soft. We know it won't last forever."
©Copyright Daily Business Review
Email Steve DiGiacomo,
SIOR
President, DiGiacomo Group Commercial Real Estate
back to top
