With business back on track and its employee numbers growing, supplements-producer Avanti Nutritional Laboratories is increasing its Miami Lakes footprint by 50%.
The South Carolina-based vitamin maker has signed a five-year lease at Palms Corporate Centre for 40,000 square feet of warehouse space, said Steve Medwin, a Newmark manager that arranged the deal with landlord Link Logistics Real Estate, a branch of Blackstone. Avanti already occupies 80,000 square feet nearby where it both produces and distributes supplements.
“Ultimately expansion is necessary to continue the company’s strong growth. The leadership has confidence in its business model, its team, and the country’s ability to overcome [the pandemic],” an Avanti spokesperson said by email.
Supply-chain shortages earlier this year are motivating companies like Avanti to stock up, Medwin said. “Companies want to have more goods stored in case there is another shortage so they don’t get caught short-handed, even though having more goods requires them to pay more for storage space.
Still, vacancy rates inched higher quarter to quarter, according to the Newmark third quarter South Florida Industrial Market report 2020 report. Miami-Dade, Broward, and Palm Beach counties combined have a vacancy rate of 4.9%, up only slightly from 4.8% in the second quarter despite an increase of about 1 million square feet in inventory.
Expanding and new-to-market tenants are filling up vacancies, Medwin said. “We’ve seen a lot of expansion from within South Florida and from the northeast. Some are either opening a satellite office, dipping their toe into the water, or are relocating into the market entirely. It’s about growth of population, growth of consumption, and growth of goods.”
Nick Wigoda and John Mejia, both of Knight Frank, also were involved in the deal.
The pharma industry continues to lease much of South Florida’s warehouse real estate, which remains relatively unscathed compared to other types of real estate, including retail and hotels.
Source: Miami Herald