Water Company Leases 112K SF Near Miami

A company that pulls water out of moist air signed a 112,000-square-foot industrial lease in Hialeah, Fla., landlord Terreno Realty announced Thursday.

Terreno said the 10-year lease is at Countyline Corporate Park Building 30 at 4341 West 108th Street. The tenant, A1R Water, is a designer and manufacturer of air-to-water technology that produces water from humidity in the air.

The lease is expected to begin in May and expire in 2036, according to Terreno, a San Francisco-based company that owns 41 buildings totaling nearly 4.7 million square feet in the Miami area.

A1R Water says it delivers canned and bottled water to such clients as the Conrad Hilton Abu Dhabi, Fairmont Hotels & Resorts and the Miami Heat.

Terreno also said Thursday that it signed a 61,000-square-foot lease in the same building with an unnamed freight forwarder. That five-year deal starts in March and runs to 2031.

Terreno said it had previously leased the property to a tenant taking the entire 205,000-square-foot building. However, that unnamed company filed for bankruptcy protection, and the lease was officially dissolved last week.

The leases come amid a backdrop of a still-strong industrial market. Asking rents for triple-net leases in Miami climbed to $17.59 per square foot during the third quarter, marking the fifth consecutive quarter of increases, according to Avison Young. And vacancy declined to 5.8 percent, while net absorption more than doubled to 670,000 square feet from the previous quarter.

Jeff Ostrowski can be reached at jostrowski@commercialobserver.com.