Buyers are paying a scarcity price for small-bay infill space with short leases. The same buyer pays about $190 per SF in Orlando and $271 in Fort Lauderdale.
The price is about $271 per SF (derived); the Orlando portfolio is about $190 per SF (derived), a 43% gap. The 2013 price implies a 3.3x increase, about 9.5% a year on price alone (derived, excludes income and capex).
A 3.9-year lease term means a large share of the rent roll resets within the hold. Yardi data covered on Oct. 2 showed the national new-lease premium over in-place rent shrinking to $0.88 per SF, though Miami remained at $2.97.
Implications
The return depends on marking short leases to market. Underwrite rollover on the submarket's new-lease premium, not the national average. Cap rate and NOI were not disclosed, so this is a price comp, not a yield comp.
Flags: Single source. Cap rate, NOI and leverage not disclosed. The 2013 figure is described as a prior sale, not necessarily Blackstone's purchase. Yardi's Miami market scope was not confirmed to include Fort Lauderdale. Derived figures are CRE360 calculations.
Related coverage
Key Takeaways
- In small-bay industrial the buyer is paying for the land and the rollover and not the lease term
- Price is about $271 per SF versus about $190 per SF for the Orlando portfolio
- Underwrite rollover on the submarket new-lease premium
Commercial Observer, Blackstone Sells Fort Lauderdale Industrial Campus for $57M, Oct. 5, 2026
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