Airport West Stretches
South Florida Business Journal
May 21, 1999
Volume 19, Number 40
A Miami developer hopes
to take advantage of rising prices and dwindling vacancies in the Airport
West industrial market by adding nearly 1 million square feet with two
office and warehouse parks.
Analysts say Paul
Douglas plans to build his largest venture Doral Commerce Park
- on the border of Airport West and Medley marks the next logical
direction for the growing number of businesses that want to be near the
Miami International Airport but can no longer find affordable space in the
Gross rental rate for
industrial space in Airport West currently run as high as $7.50 a square
foot, compared to $5.50 a square foot in 1996, said Ron Berger, a vice
president at Trammell Crow Co. in Miami.
Industrial lease rates in the entire Airport/Doral market average
$6.21, according to the first quarter report by CB Richard Ellis in Miami.
Prices are expected to
shoot up even more when the sought-after Lemon tract, currently the last
large, vacant chunk of land in Airport West finally gets developed
First and Last Pocket
Businesses are going
to have to pay up or move down the road to Medley, Berger said.
But some people will resist moving to Medley because they will
think the ride is too far.
[Douglas] has found a
niche that may be the first and last pocket between Medley and Airport
Construction will start
in June on the Doral Commerce Park, a $32 million, 620,000-square-foot
office/warehouse project across from the Doral County Club & Golf
Course at Northwest 97th Avenue and Northwest 58th
Douglas is the general
partner for Doral Commerce Park Ltd., which was formed to create the
project, he said. His company, Douglas Development Group, will develop the
The six-building project
is slated for completion within two-and-a-half-years, Douglas said.
Industrial gross lease rates will average $6.75 a square foot at
Doral Commerce, he said.
Development also has started construction minutes away from Costa
Corporate Centre, which sits closer to the airport than Doral at Northwest
97th Avenue and Northwest 33rd Street.
Douglas is also the
general partner of DMCD associates, which was formed to oversee that
The 10-acre Costa Park
features 190,000 square feet in two office/warehouse/condominium
buildings, which allow businesses to buy their space on the property,
Douglas said. Construction
costs are estimated at $10 million he said.
The developer has already
sold 75% of the 12 condominium units in Costas first
103,000-square-foot building for $75 a square foot, Douglas said.
So far, buyers largely have been freight forwarding and
international trade companies like Promo International, Duamex and
Class A facilities
The Costa center should
have a value of $13.5 million once all of its units are sold, Douglas
said. Construction of its
final building is slated for completion this year.
Both industrial parks
were designed as Class A facilities, offering such amenities as
rear-loading and three doors per loading bay.
Realty was hired to handle leasing, marketing and sales for the project.
Robert Cambó is a partner in both projects, Douglas said.
is a hot market, especially for companies that trade in Latin America,
said José I. Juncadella, vice president of Codina Realty Services in
Miami. The market has continued to absorb new space.
Doral and Costa industrial parks mark the first development deals for
Douglas since he left his position as president of Easton-Babcock
Development to form his own firm in 1997.
to that, Douglas served as vice president of development for Codina
Development, as well as project director for Codinas much lauded Beacon
Centre industrial park in the Airport West market.
out on my own was the next natural progression for me, Douglas said. Its something Ive wanted to do for sometime.
for Douglas first projects came from private investors, he said.
Douglas Development is also drawing plans for some industrial projects and
80,000-square-foot office complex in Fort Lauderdale, Douglas said.
decided to make Costa into and office/warehouse/condominium project
because, quite frankly, our investors wanted to see a shorter horizon than
the develop, lease and hold strategy, Douglas said.
But in the long run, one of our objectives is to create a
portfolio of buildings that we can own and maintain for a long time.
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