July 17, 2019 — Newmark Knight Frank (NKF) 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.
NKF Miami’s Executive Managing Directors Steve Medwin and Nick Wigoda and Associate John Mejia, along with NKF 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 NKF 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.