Granite REIT Invests $36M in Coral Springs Industrial Powerhouse

3850-3872 Northwest 126th Avenue, Coral Springs, Florida, USA - In a significant move for the South Florida industrial market, Granite REIT has acquired a substantial industrial campus in Coral Springs for $36.4 million. This deal marks the company’s first venture into the region, and it reflects the ongoing demand for industrial real estate spurred by population growth and limited supply. Notably, Granite REIT, a Toronto-based real estate investment trust, is led by CEO Kevin Gorrie, who oversees the management of approximately 63.3 million square feet of warehouse space across North America and Europe.

Located at 3850 and 3872 Northwest 126th Avenue, the Coral Springs Logistics Center spans 7 acres and consists of two rear-load buildings completed in 2021. Together, these structures offer 124,500 square feet of space and boast features such as 24-foot clear heights and 21 dock-high doors. Both buildings are currently fully leased to reputable tenants, Exclusive Trim and Marc Refrigeration. This property was sold by a joint venture of Barings Real Estate, led by CEO Mike Freno, and Arkadia Property Group, chaired by Richard Kilstock, who recognized the rising value of this industrial complex (Commercial Search).

Growing Demand in South Florida

The deal aligns perfectly with current trends in the South Florida industrial market. According to a recent report from Newmark, the region continues to experience a high demand for industrial spaces, with an average asking rent of $13.21 per square foot and a remarkably low vacancy rate of just 3.7%. In fact, the first quarter of 2023 saw net absorption reaching 1,374,475 square feet, reflecting a push for more space amid a tightening market (Newmark).

Interestingly, this specific site was sold for $5.3 million more than its previous sale price of $31 million in 2022, indicating that stakeholders have a good hand on the future value of such properties. The increasing rents in Miami—where they have risen by 9.8% over the past year—are a testament to the robust market dynamics at play here (The Real Deal).

Strategic Location

Another reason for the appeal of this property is its strategic location. It offers easy access to major interstates 595, 75, and 95, conveniently connecting it to both the Miami and Fort Lauderdale metro areas. The Fort Lauderdale-Hollywood International Airport is just 27 miles away, while Miami is 48 miles distant, making it an ideal hub for logistics and distribution.

The South Florida industrial market is buzzing, and the recent sale is just one among several significant transactions in the region. For example, Airport Trade Center, a sprawling 371,976-square-foot complex, was sold by Link Logistics to East Capital Partners, further underscoring the vitality of industrial real estate in this area (Commercial Search). Other notable deals include a $43.5 million sale of a facility by Corebridge Real Estate Investors and a joint venture purchasing another center for $43.8 million.

With Granite REIT’s purchase of the Coral Springs Logistics Center, it’s clear that the momentum in South Florida’s industrial sector shows no signs of slowing. This acquisition is not only a tremendous step for Granite but also a noteworthy marker of the region’s economic health.