Newmark announced today that it brokered a renewal and expansion lease totaling 177,000 square feet with AAR (NYSE: AIR), a leading provider of aviation services to commercial airlines and governments worldwide, for its Landing Gear Services (LGS) business at Medley Commerce Center in Medley, Florida. The long-term deal will keep AAR LGS in its South Florida headquarters for the next 10+ years and reflects continued strong fundamentals in the region’s industrial market.
Located at 9270 NW 100th Street near the Palmetto Expressway, Medley Commerce Center was originally constructed in 1984 and has been occupied by AAR LGS for more than 20 years. The value-added Class B facility houses more than 500 highly skilled employees who repair and overhaul aircraft landing gear used by major airlines and the military. AAR employs approximately 6,000 people around the world and has annual revenues of nearly $2 billion.
Medley Commerce Center is owned by Gateway Southeast Properties and features more than 3 million square feet of warehouse space in proximity to the Florida Turnpike, I-75 and State Route 826. The facility is also just minutes away from Miami International Airport, Fort Lauderdale International Airport and the region’s seaports.
Newmark Miami’s Executive Managing Directors Steve Medwin and Nick Wigoda and Associate John Mejia, along with Newmark Chicago’s Director Mark Deady and Senior Managing Director Adam Marshall, represented the tenant, AAR LGS. The owners were represented by Jon Aibel, Alex Bernaldo and Mike Silva with Americas Industrial Real Estate.
“South Florida’s industrial market is booming, and this transaction reflects AAR’s continued commitment to grow its business in Miami. Nearly 100 new high-wage jobs will be created with this expansion,” said Steve Medwin.
According to Newmark Research, Miami’s industrial market continues to benefit from record demand, with more than 2.7 million square feet of leasing activity occurring in the first quarter alone. Miami-Dade accounts for nearly 70% of all industrial development taking place in South Florida, while asking rents for all three industrial segments continue to push past previous highs. Miami’s industrial vacancy rate (3.7%) also recently hit a record low despite the delivery of more than 12 million square feet of new inventory since 2011.
AAR is a global aerospace and defense aftermarket solutions company that employs more than 6,000 people in over 20 countries. Headquartered in the Chicago area, AAR supports commercial and government customers through two operating segments: Aviation Services and Expeditionary Services. AAR’s Aviation Services include parts supply; OEM solutions; integrated solutions; maintenance, repair, overhaul; and engineering. AAR’s Expeditionary Services include mobility systems and composite manufacturing operations. Additional information can be found at www.aarcorp.com.
Newmark (“Newmark”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, Newmark’s 16,000 professionals operate from approximately 430 offices on six continents. Newmark’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com.
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