Eastward ho! The restoration of Hollywood: in terms of westward expansion, the city of Hollywood has been built out for years. But the redevelopment of its eastern downtown and beach area has just started to take off. What makes it attractive for developers and new residents is a low-rise, low-stress coastal environment that retains its authentic urban flavor. Plus location, location, location - Hollywood City Report

South Florida CEO, April, 2003 by Rochelle Broder-Singer

Ironically, the beach's biggest challenge may come from the sand itself. The sand in portions of Broward County erodes quite rapidly, and a renourishment project that has been talked about since 1986 is finally slated to begin this August. "From a pure property preservation standpoint ... our foundations are actually being washed out on one of our garages, and the Diplomat is having seawall erosion," says Charles E. Smith development director Steve Sorensen. Mayor Giulianti says that, one way or another, the sand will be replenished.

And Now For Trade

Perhaps least known of Hollywood's assets are two aces it has up its sleeve: Fort Lauderdale-Hollywood International Airport, which abuts the city, and Port Everglades, 80 percent of which lies within city limits.

Port Everglades is a major gateway for petroleum imports and vehicles, and its Foreign Trade Zone No. 25 offers space for companies to repackage, sort and otherwise manipulate imported merchandise, without paying US duties. The port recently added 45 new acres of container terminal space, and is considering an intermodal rail yard. "One of the advantages that we have is that we do have property and room for expansion," says port director Ken Krauter.

Most of the city's industrial space is concentrated at Port 95 Commerce Center, just west of I-95 on SW 30th Avenue. The development contains 2.5 million square feet of buildings. Building owners include Pro Logis Trust, with 1.2 million square feet on 50 acres of land; The Easton Group, with 400,000 square feet of buildings; Kelsey, with three buildings totaling 276,000 square feet; and Principal Capital Management, which in February paid $9.65 million for 151,389 square feet of buildings on 8.77 acres.

Port 95 offers a good vantage point for Miami-Dade companies to expand north-ward, says Chuck Sullivan, senior vice president of Pro Logis Trust. "It's an opportunity for companies which are moving north not to make as much of a leap as they may have to otherwise," he says. The real estate investment trust (REIT) is finishing its eighth, and final building, which will add 164,511 square feet to the center. Among Pro Logis' tenants are BrandsMart USA, ZF Marine, ABX Logistics, Gambro and Pride Out-door Furniture.

Electronics and appliance retailer BrandsMart, with 550,000 square feet of space, became Pro Logis' first tenant when it relocated its headquarters and distribution facility from Miami. "We took a map and we sat down and tried to figure out the equidistant point to all [South Florida] areas, and I-595 is pretty much the dividing line," says CEO Michael Perlman. "It's truly perfect geography." For The Easton Group--which owns three buildings in Port 95, including a 190,000-square-foot property occupied by FedEx--proximity to the airport has been the key, says CEO Ed Easton.

In fact, demand for industrial space in Hollywood is outstripping supply. "The good news is that we are virtually 100-percent leased [in industrial space]. The bad news is we have very little land available for any future building," says Christopher Metzger, senior director at real estate firm Cushman & Wakefield of Florida.