Cushman & Wakefield closed a $25.8 million industrial deal in Palm Beach County in another transaction speaking of the market’s strength.
Cabot Properties Inc., a private equity real estate investment company, bought three fully occupied warehouse and distribution facilities totaling 172,811 square feet at the Vista Business Park from industrial real estate developer McCraney Property Co.
The deal for the property northwest of Florida’s Turnpike and Okeechobee Road closed Oct. 31.
Two buildings are a 44,234-square-foot warehouse and distribution facility at 2211 Vista Parkway and the 51,400-square-foot structure next door at 2213 Vista Parkway, which sit on a combined 7.2 acres. Just to the north is the third building, the 77,177-square-foot light warehouse and distribution facility on nearly 8 acres at 6935–6965 Vista Parkway North.
“The Palm Beach County industrial market is probably the strongest I have seen it in the 20-year history,” said Christopher Thomson, who was part of the Cushman & Wakefield team that closed the deal. “The new product that continues to come up seems to be absorbed within the first three to six months” of obtaining a certificate of occupancy.
Thomson, C&W’s executive director in West Palm Beach, worked along with executive directors Chris Metzger and Rick Etner Jr. in Boca Raton and director Matthew McAllister in Boca Raton to represent Cabot in the deal. Also involved were vice chairman Mike Davis and executive director Rick Brugge in Tampa as well as executive director Michael Lerner in Orlando.
Cabot has been a long-time Palm Beach County investor and jumped at the opportunity to buy the properties, Thomson said.
Who could blame the Boston-based company with positive market metrics? A Cushman & Wakefield report showed the vacancy rate dropped to 2.8 percent in the third quarter — the lowest in nearly 20 years. Industrial asking rents climbed to $8.47 per square foot, a 24 percent increase in five years.
The vibrant market is fed in part by the scarcity of industrially zoned vacant land, which in turn increases the barriers to market entry, Thomson said.
The mixed-use Vista Business Park east of Jog Road also has offices and is near the Emerald Dunes golf club.
The transaction “continues to show the strength of Palm Beach County’s market and the continued influence of institutional-quality investors,” Thomson said. “Expectation is the majority of this market is going to continue to turn to more institutional ownership market.”