Tenant Turns Owner As Market Recovers

Sep 11, 2012 No Comments by

Perfection Architectural Systems, which produces aluminum canopies installed throughout the U.S., had been a tenant in at the 2310 Mercator Drive building for 10 years. Rather than renew its lease, the company determined there were economic advantages to purchasing the 50,016-square-foot facility for for $2.215 million.

Matt Sullivan and Wilson McDowell of Colliers International Central Florida represented the buyer in the transaction. The seller was Clonts Farms.

“We scoured the market and determined that the facility Perfection Architectural Systems currently occupies allowed them to continue to grow as the market recovers,” McDowell said in a statement. “Purchasing the property not only saves the company relocation expenses, but also provides significant economic advantages in decreasing overall occupancy costs.

“For a long time people were just reluctant to sign long-term leases or to make long-term decisions,” Nick Wigoda, a vice president at Jones Lang LaSalle, told GlobeSt.com. “Given the uptick in the economy and just trade with international commerce, people are feeling more comfortable to commit.”

When asked if industrial is a tenant’s or landlord’s market, Wigoda says the industrial landscape is in neutral. He sees an equilibrium, where tenants can still get good deals but landlords are locking good rates with tenants.

That could soon change. “I think the shift is going to come in 2013 to a landlord’s market,” Wigoda says. “And given the new construction in 2014 who knows what will happen.”

 

Source:  GlobeSt.

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