Some companies are growing during the pandemic. One just bumped its footprint by 60%
A local plywood company is doubling its industrial space after an uptick in new construction.
USply, launched in 2006, is increasing its footprint by almost 60%, leaving its 58,000-square-foot distribution center in Miami Lakes for a 92,550-square-foot space at the 263,131-square-foot Medley 104 Industrial Center. Its current lease ends late this year.
The company orders plywood from South America and Asia, then distributes it to contractors in Florida, Texas and Alabama. The Medley lease, signed in July, is the largest industrial lease closed in Miami-Dade in the third quarter 2020 and marks one of the largest company expansions in South Florida in 2020.
JLL Vice President Matt Maciag represented USply. Cushman & Wakefield Executive Managing Director Wayne Ramoski represented landlord Lincoln Property Company with colleagues Gian Rodriguez and Skylar Stein.
The lease is indicative of an active warehouse market, Maciag said. “We’re still seeing local and multinational businesses looking for space. Goods still need to be moved. That’s keeping up the demand.”
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USply wants to expand its 25-member team by 10 over the next 18 months, adding to its management and warehouse divisions. The Medley location will be used for distribution, light manufacturing and assembling.
“The overall economic improvement throughout the country over the past several years has also played a part in this growth, especially within the housing market, which is seeing robust consumer confidence in recent months,” said USply CEO Alex Amaral.
While construction slowed predictably during the COVID shutdown, some local builders moved forward during the second quarter and others are launching new projects now as demand increases for single-family homes.
“Demand for plywood decreased when the pandemic first started, but we are now seeing a steady increase in sales. Our sales to date for 2020 are holding steady compared to the same time period in 2019,” Amaral said. “As consumers continue to spend more time at home during the pandemic, we expect that many households will look to remodel and upgrade areas of their home, like kitchens and bath cabinetry.”
The average asking rents for warehouse space in Medley is $7.10 per square foot, up from $6.85 per square foot in the first quarter 2020, according to the JLL first and second quarter 2020 reports. The average asking rents are slightly lower than the countywide average of $7.52 per square foot.
“We don’t see an impact on rental rates, but we are seeing landlords offer concessions from renovations to rent abatement,” Ramoski said.
USply will share the space with another tenant — the furniture company Artefacto.
USply stalled signing the lease in March, “because the company wanted to see the impact the pandemic would have on its business,” Ramoski said.
This story was originally published August 4, 2020 at 7:00 AM.
