Avison Young Principal Tom Viscount represented Chauvet Lighting in the $14.2 million sale of its 61,660-square-foot warehouse at 5200 NW 108th Avenue in Sunrise on the heels of the global entertainment lighting company’s headquarters relocation and expansion within South Florida’s Broward County. Chauvet Lighting will now operate from one convenient location as one of two tenants at the newly-built 225,580-square-foot Davie Business Center building at 3360 Davie Road in Davie.
Amanda Montanez and Tom Capocefalo of Savills represented the buyer, BF Aerospace, in the Sunrise building transaction.
“Warehouse buildings for sale are scarce throughout the tri-county South Florida market, and as such, we saw a ton of activity on the Sunrise listing followed by multiple offers,” said Viscount. “Interest rates steadily crept up during the sale listing, which presented a challenge as it affected pricing from an investor perspective. However, as rental rates continue to increase sharply, end users are more focused than ever on securing their own real estate for the long term to avoid dealing with further rate increases when renewing leases.”
Many tenants are seeing increases of over 30-50% offered by landlords when trying to renew their existing lease, which was the case for BF Aerospace, Viscount explained. The resulting Sunrise building sale shows that demand for warehouse space remains high. According to Avison Young insights, industrial vacancy in Broward County is just 4.6%, while Miami-Dade and Palm Beach experience even lower rates at 2.1% and 4.2%, respectively.
“To achieve cost efficiency in a tight industrial market and understanding the construction timeline would be about a year out, we executed Chauvet Lighting’s lease at the Davie Business Center first to lock in a good rate at a brand-new, class A space conveniently located in Davie,” said Viscount. “In the interim, despite numerous interest rate hikes, the Sunrise building further appreciated in value as rental rates kept climbing and a lack of inventory available for purchase further fueled end-user demand.
Chauvet Lighting is a leading global entertainment lighting company operating through several brands: CHAUVET Professional, CHAUVET DJ, ChamSys, Iluminarc, Kino Flo and LynTec. The relocation and expansion will allow the company to continue its positive growth trajectory and add several new jobs, further benefiting the flourishing local economy.
According to the Florida Department of Economic Opportunity, Broward, Miami-Dade, and Palm Beach Counties continue to report unemployment rates below 2.6% as of February 2023. Nationally, the jobless rate stood at 3.5% in March.
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Tom Viscount, Principal