Avison Young closes $10.95M sale of 52,740-square-foot warehouse/flex asset in West Palm Beach, Florida

Sale closes at aggressive pricing of $208 per square foot, underscoring strong demand for small-bay industrial properties in the market

West Palm Beach, Fla. – Avison Young’s Florida Capital Markets Group completed the $10.95 million sale of a small bay warehouse/flex asset spanning three buildings and totaling 52,740 square feet at 3866 Prospect Ave. in West Palm Beach, Florida. The $208-per-square-foot transaction is substantial small bay sales and represents growing demand in the market.

Avison Young Principals Brian C. de la Fé; Michael T. Fay, who is also Chairman of the U.S. Capital Markets Executive Committee and Managing Director of the firm’s Miami operations; David Duckworth; and John K. Crotty, CCIM; represented Boca Raton-based seller 2020 Properties in the disposition to buyer Twenty Lake.

“There continues to be strong demand for small bay industrial properties from a diverse pool of buyers, including private investors, mid-sized family offices, and larger groups with national portfolios,” said de la Fé. “These properties are attractive due to the typical sub-$15 million transaction size, as well as the relatively lower cost and shorter time required to re-tenant spaces compared to other property types.”

According to Avison Young insights, West Palm Beach’s industrial market has seen a significant rise in asking rates, increasing by 59% over three years, solidifying industrial properties as solid investments during a challenging economic period.

“Our client, whom we’ve worked with for over 30 years, is an active seller in the market with the closing of this sale and another pending,” said Fay. “Lack of supply and increasing demand for high-performing, well-located assets have propelled rental and sales rates, especially in the industrial sector.”

Ideally located along Interstate 95, 3866 Prospect Ave. is proximate to several other major highways, airports, seaports, and railways, providing tenants with incredible connectivity and access. Additionally, the property provides significant cashflow, which has the potential to increase via leasing at market rents with extended terms as current leases are set to expire.