Powerhouse Engines Signs 10-Year Lease for 90,000-Sq-Ft Miami-Dade Headquarters at Tamiami Logistics Center

Powerhouse Engines signed a 10-year lease for 90,000 square feet at Hamilton Development's Tamiami Logistics Center in West Kendall, Miami-Dade, and plans to relocate in the first quarter of next year.

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Industry impact

Tight industrial vacancy and rising asking rents in South Dade show MRO and engine-services firms increasingly competing with logistics tenants for scarce large-format industrial space near major airports.

What happened

Powerhouse Engines, an aviation services company specializing in engine repairs, maintenance, leasing, and investments, has signed a 10-year lease for a new headquarters in Miami-Dade County. The facility spans 90,000 square feet across two industrial buildings at Hamilton Development's Tamiami Logistics Center, located at 14100 Southwest 136th Street in West Kendall — nearly four times larger than the company's current 25,000-square-foot headquarters. Powerhouse Engines is expected to relocate in the first quarter of next year.

The Tamiami Logistics Center was developed by Nashville-based Hamilton Development, with local leadership from partner Hayne Hamilton. Construction began last year on the site, which Hamilton acquired from Baptist Health South Florida for $12.3 million. The roughly seven-acre property previously housed a 45-year-old, 45,000-square-foot office building. The development encompasses 113,900 square feet of industrial space across three fully completed buildings and is now 96 percent leased, with only 7,000 square feet remaining available in the third building.

The South Dade submarket reported 19.2 million square feet of warehouse and distribution space in the second quarter, with a vacancy rate of 3.4 percent. Average asking rents reached $17.39 per square foot, according to Colliers. An additional 112,924 square feet were under construction, with 265,318 square feet recently delivered. Longpoint Partners acquired a 146,700-square-foot portfolio in Medley for $38.8 million, Woodhill Real Estate purchased a 10-building portfolio in East Hialeah for $32 million, and Longpoint also acquired a 90,000-square-foot warehouse in Miami for $24.6 million. Avison Young reported that South Florida's industrial sector was the region's strongest commercial real estate asset class in the first half of the year, with 193 deals totaling $3.3 billion, a 130.5 percent increase from the prior year.

Who this affects

• Maintenance Repair and Overhaul (MRO) — A large new engine-services facility in West Kendall points to expanding heavy-maintenance capacity as South Dade industrial vacancy sits at 3.4 percent.
• Aviation Manufacturing Supply Chain — Suppliers tied to engine repair and leasing work may see added capacity once the West Kendall facility opens next year.