Colliers Negotiates 185,000 SF Industrial Lease Valued At More Than $22 Million

Power Systems MFG., LLC (PSM), a global multi-OEM industrial gas turbine service provider under parent company Hanwha Impact, has signed a 10-year lease valued at over $22 million at the South Florida Gateway Distribution Center in Stuart for 185,000 square feet.

Colliers’ Executive Vice President Michael Falk and Associate Jonathan Temple represented the tenant in the lease transaction. Cushman & Wakefield’s Matthew McAllister and Eric Cantor represented the landlord, Foundry Commercial, in the negotiations. Additionally, Colliers’ Executive Managing Director Gregg Main-Baille and the Florida Development Services Group will provide construction management services for tenant improvements.

“It was a pleasure working with a dynamic group of individuals at PSM who understood the process and were focused on meeting their real estate requirements,” said Falk. “Connecting them with a developer who has crafted sophisticated finishes for similar firms also helped streamline the transaction.”

 

“This was a tremendous win for all parties involved in this transaction. Martin County was incredibly helpful throughout the process and was an integral part of landing PSM in Stuart. A special thank you to Foundry Commercial, Stockbridge, Colliers, PSM, and everyone else who assisted along the way. Our team looks forward to bringing this project to full occupancy,” said McAllister, Managing Director at Cushman & Wakefield. 

South Florida Gateway Distribution Center, located at 2400 SW Gateway Place, is a Class A, master-planned, mixed-use development with frontage on Kanner Highway. Centrally located in southeast Florida, Martin County is close to Florida’s Turnpike and Interstate 95. Recently developed by Foundry Commercial in 2023, the property is comprised of over 1.2 million square feet across four buildings offering Class A warehouse product to users seeking 10,000 square feet up to one million square feet.

“Working with Martin County’s Economic Development Council, County Administration, and County Commissioners helped create a positive business environment that gave PSM a comfort level that South Florida Gateway Distribution Center was the right location for their expanded operations,” said Falk.

 

“We are thrilled to welcome Power Systems MFG to South Florida Gateway,” said Ted Elam, Principal of Development & Investments at Foundry Commercial. “We designed South Florida Gateway to provide high-quality industrial space to the growing South Florida and Treasure Coast market at good value, and we are glad that this combination met PSM’s requirements for their critical expansion needs.”

The industrial sector in Stuart is experiencing significant growth as South Florida faces a shortage of available industrial space. This trend is driven by several key factors, such as Stuart’s strategic location, which provides easy access to major highways and ports, making it an attractive option for logistics and distribution companies.

Additionally, the increasing demand for warehousing and manufacturing facilities, spurred by the expansion of e-commerce, has led companies to seek efficient spaces for storing goods and managing inventory. Rising costs and intense competition for industrial space in areas like Miami and Fort Lauderdale are prompting businesses to look for more affordable and accessible alternatives in nearby Stuart. Furthermore, local government initiatives to attract businesses, including various incentives and infrastructure improvements, contribute to the area’s industrial growth. Stuart is drawing a diverse range of industries, such as manufacturing, logistics, and technology, which help diversify the local economy and create job opportunities. As a result, Stuart is emerging as a viable alternative for companies looking to navigate the constraints of industrial space in South Florida, driving its market growth.