The Orlando-based Cushman & Wakefield team of Lee Morris, Jared Bonshire and David Perez represented Blade Runners in the full-building transaction. Landlord Redd Properties LLC was represented by Greg Rebman and Cory Kroeger of KR Properties.
The site was the former home of Redd Paper, a business that was sold, with ownership of the building retained by the affiliated Redd Properties. "We evaluated the potential of purchasing or leasing the building," said Perez. "This transaction is a lease with a seven-year term and an option to purchase."
Blade Runners Commercial Landscaping "is very well-branded locally," said Perez. "They do all commercial and HOA work for Hilton, Home Depot, Haverty's, and Rooms To Go among many others."
As for the site search for the company's expansion and relocation, "Blade Runners was flexible geographically as they service approximately a 60-mile radius, and searched within a 20- to 25-mile radius of the center of Orlando," said Perez. "It was a challenging search, however, in that they sought a building that had a nice image, tilt-wall construction, and excess acreage for outside storage. We explored a number of options, and this is the one that fit all of the checkboxes."
The outside storage requirement was met by a site that totals 5.26 acres. Constructed in 1991, the one-story 3851 Center Loop also features 24-foot clear ceiling heights.
The signing comes at a time when the Orlando industrial market continues to show improved fundamentals. Overall vacancy fell by 1.7 percentage points to 9.5 percent during 2013, representing the lowest year-end figure since 2007, according to Cushman & Wakefield's latest data. Direct asking net rents also increased year-over-year by 1.6 percent, even with an upswing in construction. And overall absorption ended 2013 in positive territory.
On the investment side, sales finished 2013 at the highest level since 2007, with 4.4 million square feet sold during the course of the year. "The strong interest by users and investors in this market is a sign of the potential for future growth," said Perez. "With solid fundamentals, the market is trending for positive growth through 2014."