NAI/Merin Hunter Codman, Inc. has arranged for Harbor Freight Tools USA to lease a 12,100 square-foot freestanding building in the highly desirable Palm Beach Gardens retail corridor of South Florida.
Harbor Freight Tools is an extremely successful, nationwide retailer of brand-name discounted tools, ranging from power, air and hand tools, to auto and motorcycle tools and generators, to household tools—including for assisted living—and lawn and garden tools, among other categories.
The new lease marks a departure in use for the existing contemporary building, located on Northlake Boulevard near US 1, which previously hosted an interior design center. Harbor Freight Tools marks a return to basics as industries such as housing in South Florida continue their recovery, and consumers focus on basics such as renovations, remodeling and maintenance.
“This retail property represented an ideal fit for Harbor Freight Tools,” said Jordan C. Paul, CEO of NAI/Merin Hunter Codman. “It’s by the nexus of two of Palm Beach County’s most trafficked thoroughfares, in a highly desirable demographic area, and is surrounded by key retailers like banks, grocers and pharmacies. Harbor Freight Tools will benefit from a built-in consumer base.”
The new store will add to the Calabasas, California-based company’s 400-plus existing stores nationwide.
Harbor Freight Tools more typically leases “inline” space within retail centers for its ever-expanding collection of retail stores. Inline tenants are smaller tenants that pay higher rental rates than larger tenants to benefit from the foot traffic of anchor tenants. Inline tenants also often sign short-term leases. The property on Northlake Boulevard, however, which was formerly the “Florida Design Center,” marked an extraordinary opportunity for Harbor to capitalize on existing retail space at opportune pricing, yet with the benefits of an abundance of retailers surrounding. NAI/Merin Hunter Codman negotiated a long-term lease for the tool company.
Added Bruce Corn, Managing Director at NAI/Merin Hunter Codman, “This second generation space offered the best of both worlds: heavy retail traffic but at pricing more competitive than within a retail center.” Corn represented the building owner in the Harbor Freight Tools lease transaction. Corn notes that a key to NAI/Merin Hunter Codman’s retail success in recent years is finding higher and better alternative uses for space, such as it did in identifying Harbor Freight Tools as a tenant.
Harbor Freight tools will build out the space to its exacting specifications and expects to open by year-end.
Harbor Freight Tools is a family-owned business founded in 1977. The firm offers more than 7,000 tools and accessories, with quality that matches or exceed competing brands, but with prices up to 80% less that it achieves by buying factory-direct and cutting out the middlemen. The firm boasts over 20 million loyal customers and tests its tools in its own state-of-the-art labs, like those operated by leading consumer advocate organizations.
Get the latest industry news and information from CRE-sources delivered right to your email inbox! And we promise…no more than one email each morning.
And we promise…no more than one email each morning.