In one of the largest industrial leasing agreements so far in 2011, AMB Property Corp. ([stock]AMB[/stock]), a real estate investment trust (REIT), has recently leased 180,000 square feet of space at Blue Lagoon Business Park in Miami, Florida, for about $ 10 million. The lessee was Aeropost International Services, Inc., a Miami-based mail and package forwarding company.
With over 20 years of experience, Aeropost provides a state-of-the-art technology platform for a seamless delivery of packages across the globe. The Miami warehouse also functions as a hub in conjunction with its partners throughout Latin America and the Caribbean to deliver packages, internet purchases, mail, and logistics services across varied destinations.
The leased property, adjacent to the Miami International Airport, is located in close proximity to Port of Miami and offers unmatched communication facilities to the lessee. With various amenities such as restaurants, hotels and shopping centers in its vicinity, the Class A distribution warehouse building is also strategically located in one of the most coveted business neighborhoods in South Florida.
AMB provides industrial distribution warehouse space in some of the busiest distribution markets of the world. The majority of the company’s portfolio comprises high throughput distribution (HTD), which provides multiple options for quick movement and the distribution of goods to the customer. HTD properties are warehouses or other industrial properties that are located near airports, seaports, and ground transportation facilities, which enable rapid distribution of customers’ products. These HTD centers are typically located in areas characterized by global ports in supply-constrained, in-fill markets, which enable the company to gain a significant pricing advantage.
AMB operates as a vertically integrated company and enjoys large economies of scale through an extensive knowledge of domestic and international industrial real estate markets. The company has two lines of businesses – real estate operations, which involve the long-term ownership and operations of industrial properties, and private capital, which provide portfolio management and reporting services to JV partners. AMB earns acquisition, development, and asset management fees in addition to priority distributions and promoted interest from the private capital business.
Currently, we have a ‘Neutral’ recommendation and a Zacks #3 Rank on AMB that translates into a short-term ‘Hold’ rating. We also have a ‘Neutral’ recommendation and a Zacks #2 Rank (short-term ‘Buy’) for Duke Realty Corp. ([stock]DRE[/stock]), a competitor of AMB.
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