Archive for Industrial

Oct
12

Magna Distribution Center Sold for $80/sf

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Magna Distribution Center for PR EmailHolliday Fenoglio Fowler, L.P. has announced the $18.5 million sale of Magna Distribution Center, a 229,950-square-foot, fully leased, Class A+ warehouse and distribution facility in the Greenville-Spartanburg area of Moore, South Carolina.

Recently completed in 2017, Magna Distribution Center is a build-to-suit for Magna Seating of America, Inc., an industry-leading advanced automotive seating manufacturer. The 229,500-square-foot building has an expansion capacity of approximately 50,000 square feet and features 214,450 square feet of production space, 15,500 square feet of office space, LED lighting, 50-by-50-foot column spacing, 32-foot clear height, 30 dock-high doors, 13 knock-out panels, 20 trailer stalls and 250 employee parking spaces. Situated on 19.71 acres within the 882-acre master-planned Tyger River Industrial Park North, Magna Distribution Center is situated along Route 290 and has access to Interstates 26 and 85, the industrial “backbone” of the southeast. Additionally, the property is in the Route 290 Industrial submarket, a major automotive hub that is approximately 10 miles from BMW’s 1,150-acre Greer manufacturing plant.

The HFF investment sales team representing the seller consisted of senior managing director Chris Norvell and director Patrick Nally. The seller was SunCap Property Group. A private investor purchased the asset.

Categories : Spartanburg
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Feb
09

How Long Will the Industrial Boom Last?

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industrial-buildingsInvestors are diving into the U.S. industrial market, chasing after a property type that’s having one of its best recovery cycles on record because of the never-ending need for more e-commerce distribution space. However, with strong performance come higher prices, a trend that’s pushed some firms out of the market and may eventually shrink yields if demand cools down.

Last year the U.S. industrial sector registered net absorption of 238.6 million sq. ft., a high water mark for the sector for net absorption gains, according to a recent report from real estate services firm Cushman & Wakefield. Further, the national vacancy rate dropped for the 23rd consecutive quarter in the last three months of 2015, to about 7 percent, the longest streak of net occupancy growth in more than two decades.

The national development pipeline remains strong, with 180.5 million sq. ft. under construction, and 172.4 million sq. ft. delivered in 2015, according to an official statement from Jason Tolliver, head of industrial research for the Americas at Cushman. Supply still isn’t catching up with demand, he noted.

“Based on active tenant requirements, an indicator of future leasing velocity, there is a robust pipeline of pent-up demand,” Tolliver said. “With current and projected demand from active tenant requirements double the amount of speculative construction now under way, demand will likely exceed supply for at least one more year as domestic fundamentals and industrial occupancy drivers remain strong.”

READ MORE HERE

Categories : National News
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Dec
08

Low Vacancy Driving Savannah Spec Building Construction

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spec buildingWith area industrial vacancy rates at historical lows, speculative building is beginning to pick up as developers — still smarting from losses incurred in the recession of 2008-2010 — jump cautiously back into the game.

The latest is California-based Panattoni Development Co. and its equity partner, PCCP LLC. The two have formed a joint venture to buy a 33-acre land parcel in Westport Business Park in Garden City to build a 312,000-square-foot industrial distribution center.

The center, which is expected to be complete by August, will consist of a cross-dock distribution center featuring 32-foot clear ceiling heights with 94 dock doors, 52-by-60-foot stage bays, trailer spaces and 77 car parking spaces.

“We are looking forward to embarking on our second equity investment with Panattoni, a best-in-class developer of industrial properties throughout the nation,” said John Randall, managing director with PCCP. “Based on the local market fundamentals and high demand for quality facilities, we anticipate this property will generate a good amount of interest from large corporate users.”

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Categories : Savannah
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Aug
18

Need Big-Box Industrial Space? Good Luck

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warehouse insideNet industrial absorption has outweighed new space completions for five straight years following the recession, particularly in the big-box segment, resulting in a significant drought of available space in many major markets at mid-year 2015.

Craig Meyer, president of industrial brokerage division with commercial real estate services firm JLL, says the expected 171 million sq. ft. of industrial space scheduled to be completed this year will not meet the 219 million sq. ft. of anticipated absorption. The supply imbalance will likely continue into 2016, he says.

“Construction deliveries have been minimal this cycle, and are under the historic norm,” Meyer says. “New deliveries as a percentage of the nation’s existing stock averaged 0.7 percent per year over the last seven years. This compares to the 20-year average, since 1996, of 1.4 percent per year.”

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Categories : National News
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Aug
12

Colliers Releases Charleston Industrial Report

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colliers charleston industrialKey Takeaways:

  • Major investments from automotive manufacturers Volvo and Mercedes-Benz were announced during the first half of 2015. Together, the manufacturers will be investing $1 billion and creating 5,300 jobs over the next decade
  • Speculative and build-to-suit construction is strong throughout the market.
  • Industrial employment in the Charleston-North Charleston-Summerville, SC MSA is at record-high levels, surpassing pre-recession employment of 32,400 jobs.
  • Activity is up at South Carolina’s ports. Container volumes at the Port of Charleston increased 14% during the South Carolina Ports Authority’s 2015 fiscal year.

Download the report HERE.

Categories : Charleston
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Jul
29

Charleston Industrial Rents on the Rise

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industrial constructionAs more major manufacturers announce projects in the region, vacancy rates continue to decline in Charleston’s industrial market, according to several second-quarter market reports.

The dwindling inventory is causing rental rates to inch upward, according to Newmark Grubb Wilson Kibler’s report.

In March, Mercedes-Benz Vans announced an expansion of its Lowcountry footprint with a $500 million investment in a new van plant in Palmetto Commerce Parkway in North Charleston. Roughly 1,300 employees will be hired to manufacture the vans from start to finish, rather than the current assembly-only operation.

Volvo Cars announced plans in May to build an automotive campus on a site in Berkeley County. Construction will begin on the $500 million plant this year. Roughly 2,000 employees will be producing cars by 2018, according to Volvo officials.

The dearth of inventory means new development is required, as large manufacturers and their suppliers are in need of industrial spaces, Lee and Associates reports.

And in its report, Avison Young said roughly 1 million square feet of much-anticipated speculative space is now being built.

READ MORE AND GET LINKS TO THE REPORTS HERE

Categories : Charleston
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May
28

Intermodal Industrial Facilities Capture Investor Attention

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port craneE-commerce growth and port traffic troubles have dominated the news in the industrial sector this year, but a story that has been relegated to the background has been the increasing popularity of intermodal industrial properties. Investors are now collecting premium rents for intermodal properties located near large container-stacking facilities.

The nation’s logistics sector is now facing a perfect storm of individual consumers and businesses increasing orders and the need for deliveries in the absence of enough transportation growth. Large Panamax ocean vessels are now clogging East and West Coast ports with almost four times the delivery levels as a decade before. Dock worker strikes at Los Angeles-Long Beach and trucker shortages have further exacerbated the port back-ups.

As a result, intermodal properties have been expanding steadily to meet new demand. Thirty intermodal parks opened since 2000, with 19 of those opening in the past seven years. Markets with intermodal facilities, including Chicago, Dallas/Fort Worth, Atlanta, Indianapolis and Kansas City, have the highest rent growth, according to a recent report from commercial real estate services firm Cushman & Wakefield. Traffic at intermodal facilities increased by more than 5 percent from 2013 to 2014, according to the Cushman report. According to a Colliers report, intermodal traffic in January 2015 was at about 251,000 containers per week, the highest January average in history.

READ MORE HERE

Categories : National News
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May
13

Avison Young Sells Hanahan Industrial Building

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banktonAvison Young commercial real estate has announced that Todd P. Garrett, CCIM, SIOR represented Bankton Drive, LLC in the sale of a 19,480 SF office/warehouse building located at 1007 Bankton Circle in Hanahan, South Carolina to John J. McDonald Trust for $925,000 or $47.48/sf.

The building has 1,935 sf of warehouse space and 17,545 sf office. It is 100% heated and cooled, and has plenty of parking with approximately 77 spaces around the building. The building is located just off of I-526/I-26 in the center of the metro area in industrial / defense area. It is in close proximity to ports, I-26, I-526, Air Force Base, Boeing and Naval Weapons Station.

Thomas Boulware and Dexter Rumsey of NAI Avant of Charleston represented the buyer.

Categories : Charleston
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May
13

NAI Avant Announces 1Q Industrial Transactions

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nai avant logoNick Stomski, SIOR, NAI Avant’s leading industrial specialist, has completed a significant volume of notable industrial transactions with a total of over 400,000 square feet of industrial space during the first quarter of 2015.

– Stomski represented the owner of 289 Wilbert Way, located in St. Matthews, SC, in the sale of their ±146,781 square foot manufacturing facility for $2,275,000 to Wire Mesh Corporation. The family-owned welded wire products company has announced that they are prepared to invest $13.9 million into the facility and create over 50 jobs over the next five years.

– Stomski represented the owner of 34 Hilltop Road in Johnston, SC, in the sale of their ±107,712 square foot industrial warehouse to Log Creek Timber Company. Log Creek Timber, a family-owned company run by a professional staff of foresters and buyers, offers land owners a full range of forest management and harvest services.

– Stomski and NAI Avant senior broker Rob Lapin represented the landlord of 715 Bluff Road, an industrial facility, located on the edge of downtown Columbia, in the lease of ±60,000 square feet of administrative and warehouse space to the City of Columbia. The gross lease value of this transaction was over $1,000,000.

– Stomski and NAI Avant senior broker Dick Stanland represented the landlord of 1517 Key Road in Columbia, SC, in Bellsouth Telecommunications’ lease renewal of ±30,000 square feet.

– Stomski represented the tenant, UTi Logistics, in the lease renewal of ±60,000 square feet within the 186,000 square foot distribution center at 132 Joseph Walker Drive in Elgin, SC. UTi Logistics is an industry-leading supply chain management company that delivers competitive advantage to clients’ supply chains.

Categories : Columbia
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Mar
26

Flurry of Freight Spurs New Construction in Georgia

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port craneThe business of marine transport here at the nation’s fourth-largest container port is a study in numbers.

Thirty-one oceangoing container vessels berth at the nearly 10,000-foot-long Garden City terminal each week. More than 8,000 trucks arrive and depart from the terminal daily. Garden City handled 3.3 million 20-foot containers last year, over 10 percent more container cargo than in 2013, and a record.

There are other numbers that are just as vital to this growing business, but not nearly so visible. Hidden behind the green curtain of Georgia pine forest that surrounds the terminal are 45.3 million square feet of logistics, storage and distribution centers, according to the Georgia Ports Authority, the terminal’s owner and operator.

“The link between the terminal and the distribution centers is essential to our operations,” said Curtis J. Foltz, executive director of the Georgia Ports Authority. “Our competitiveness is based on efficiency and connectivity, making sure products don’t sit around. The real estate developments are a partnership that makes expanding trade here possible.”

READ MORE HERE

Categories : Savannah
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Feb
18

U.S. Industrial Investments Enjoys Best Year Since 2007

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industrialAccording to CBRE, increased trade, industrial production, employment and consumer consumption in the U.S. combined to drive the largest full-year Industrial investment total since 2007.

Total investment volume in U.S. industrial properties totaled $54 billion in 2014, a 13 percent climb over the prior year. If industrial investment continues to rise at the pace set in 2014, the 2015 volume will reach the prior peak of $61 billion, set in 2007.

The year closed with a very active quarter for industrial property investment, in terms of sales volume. The $16.1 billion of industrial property investment in Q4 2014 reflected a 6.3 percent gain over the year-earlier quarter. The quarter’s total was also the highest sales volume since Q3 2007 and the third highest in the past 14 years.

“The U.S. industrial market is firing on all cylinders. The low cost of energy and a strong dollar are contributing towards increased business investment, production, employment and consumer consumption. These diverse sources of growth have combined with local economic factors to generate demand for industrial space not seen since before the financial crisis,” said Jeanette Rice, Head of Investment Research, Americas, CBRE.

READ MORE HERE

Categories : National News
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Feb
12

Cresa Industrial Update – Q4 2014 (video)

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Categories : National News
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Dec
16

Cresa Industrial Overview Q3 2014

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Categories : National News
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Jul
15

E-Commerce Driving Industrial Demand

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E-commerce is already dominating the conversation when it comes to industrial real estate development. However, a white paper from Prologis makes it clear that we ain’t seen nothin’ yet.

“Forecasters, such as Goldman Sachs, anticipate that online sales will continue to rise at double-digit rates for the foreseeable future,” according to the Prologis report, titled “Inside the Global Supply Chain: E-commerce and a New Demand for Logistics Real Estate.” McKinsey and Forrester Research, among others, have estimated that the online share of the retail sector “will rise to the mid-teens during the coming decade, up from less than 10% today,” the report states. “We see several themes emerging that will shape e-commerce and logistics real estate for the foreseeable future.”

One of these themes is organization. “As aggregate e-commerce demand comprises the constituent e-commerce companies, considering decision-making of individual customers provides a roadmap for the future,” according to the Prologis report. “High industry growth suggests to us that distributors will increasingly favor facilities proximate to their end customers.”

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Categories : National News
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May
27

520,000 SF Distribution Center Sold

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Charlotte-based Beacon Partners has purchased a 520,000-square-foot, fully leased distribution center in Whitsett, about seven miles from Greensboro. The property is located at 6550 Judge Adams Road, within Rock Creek Center. The distribution center sits on a 30-acre parcel located less than one mile from I-85 and with immediate proximity to the I-40 and I-85 interchange. The property features 28-foot clear heights, a truck court with dock-high and drive-in loading and a ESFR sprinkler system. Beacon Partners’ industrial portfolio in the Carolinas spans 5.5 million square feet.

Gregg Copps and Lawrence Shaw of Colliers International represented Beacon Partners in the transaction. Dodson Schenck and Greg Wilson of CBRE represented the seller.

Categories : Greensboro
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