Presentation is loading. Please wait.

Presentation is loading. Please wait.

2010 Recap Third consecutive year of negative absorption Warehouse/distribution vacancy stabilized Construction remained nonexistant INDUSTRIAL.

Similar presentations


Presentation on theme: "2010 Recap Third consecutive year of negative absorption Warehouse/distribution vacancy stabilized Construction remained nonexistant INDUSTRIAL."— Presentation transcript:

1 2010 Recap Third consecutive year of negative absorption Warehouse/distribution vacancy stabilized Construction remained nonexistant INDUSTRIAL

2 Industrial Ed Brown, CCIM, SIOR NAI Carolantic Realty 2011 Triangle NC-CCIM Commercial Real Estate Market Forecast Networking. Education. Technology.

3 TRIANGLE INDUSTRIAL OVERVIEW Ed Brown, SIOR, CCIM NAI Carolantic Realty March 16, 2011 LOOK BACK TODAY PREDICITIONS

4

5 SUBLEASE SPACE

6 ABSORPTION 2001 2002 2003 2004 20052006 2007 2008 2009 2010 4Q 4Q 4Q 4Q 4Q 4Q 4Q 4Q 4Q 4Q

7 LEASING ACTIVITY IN THE THREE LARGEST SUBMARKETS 20062007 2008 2009 2010

8

9 ADVERTISED RENTAL RATES Annualized 2000 2005 2010 Increase 900 Aviation Pkwy (30)$3.75$3.50 $4.00 0.67% Edinburgh Place (30)$4.10 $4.10$5.25 2.8% Bedford Place (30)$4.50 $3.75$5.25 1.7% Tri-Center SouthVIII (30) $4.25$4.25 $4.95 1.6% Tri-Center South II (24)$3.90$3.75 $4.75 2.2% Keystone A (24)$4.15$3.50 $4.50 0.8% Walnut Creek III (24)N/A$4.55$4.95 2.0% Greenfield 800 (30)N/A$4.25$4.95 3.3% 1.88% AVERAGE

10 TRIANGLE INDUSTRIAL OVERVIEW LOOK BACK TODAY PREDICITIONS Ed Brown, SIOR, CCIM NAI Carolantic Realty March 16, 2011

11 TOTAL VACANCY & SIZE DESCRIPTION%VACANTSIZE/VACANT Total Direct20.8%25.3m / 5.2 m Total w/o Durham Tobacco17.7%24.1m / 4.3 m Direct & Sublease24.1%25.3m / 6.1 m

12 SUBMARKET VACANCY & SIZE DESCRIPTION%VACANTSIZE/VACANT Largest Submarket – RTP9.3%10.3m / 960k 2 nd Largest Submarket – East Wake24.6% 5.2m / 1.2m 3 rd Largest Submarket – North Raleigh/US134.1%3.9m / 1.3m

13 Lower Costs / Trade Up MOVE OUT OFMOVE IN TO Beavex$6.95/sf Flexto$4.50/sf Warehouse 31,000SF Eaton$6.95/sf Flexto$4.50/sf Warehouse 42,000SF Coca-Cola1950s Facility toModern 30 Clear 250,000SF Document StorageOld 18 CleartoModern 30 Clear 100,000SF Equipment Rental$7.50/sf Flexto$3.75/sf Warehouse 40,000sf

14 MARKET ACTIVITY USELATERAL MOVENEW ABSORPTIONODDS Document Storage100,000sf90% Equipment60,000sf70% Rental Co.40,000sf80% Printing70,000sf60% Medical60,000sf90% Food70,000sf60% Electronics40,000sf70% Manufacturer20,000sf80% Furniture60,000sf90% 200,000sf320,000sf

15 NEGATIVE ASORPTION 2011 Keystone88,000sf Two tenants downsize Imperial Center40,000sf Closes 180,000sf New Sublease Tri-Center South85,000sf Sublease goes direct 32,000sf move to Creedmoor Tri-Center North170,000sf direct to shadow space Weck Drive168,000sf recycler downsizes 2100 Harrod89,000sf moves out 681,000sf

16 BUILDING SALES COMPS AddressSize$/SFDate 8605 Ebenezer Church Raleigh, NC81,600sf$45.95/sf 05/25/10 323 Park Knoll Durham, NC128,000sf$43.61/sf12/22/10 4400 Emperor Blvd. Durham, NC182,165sf$41.03/sf07/01/10

17 INDUSTRIAL LAND COMPS AddressSizeUsePriceDate 100 Laurensfield Ct.8.924Truck $2.31/sf Garner, NCacres+/1Maintenance$100,600/acre7/29/10 2800 Spring Forest 4.80$3.94/sf Raleigh, NCacres+/-Mini-Storage$171,600/acre7/28/10 860 E. Garner 4.95Martin$2.78/sf Garner, NCacres+/-Marietta$121,100/acre4/1/10 S. New Hope Rd 10.08Public Service$4.78/sf & Global St, Raleigh, NCacres+/-Gas$206,900/acre4/1/10 Northeast Food8.00Manufacturing$29,000/acre 6/1/10 Clayton, NCacres

18 CONSTRUCTION COSTS INCREASE Steel has increased 16% this year Concrete to increase $5/yard in April Fuel increase effects asphalt /rubber roof/ PVC Pipe / Transportation Grading industry is out of business. When the market comes back, a few grading contractors will control the prices charged. $55/sf to build a 60,000sf concrete building.

19 LEASE COMPS TYPERATE 24 – 30 Clear$3.75 - $4.50/sf 100% HVAC ESFR Lower Ceilings$2.95 - $3.75/sf Older Outside WakeAs low as and Durham Counties$1.75/sf

20 AFFORDABLE OPTIONS LOCATIONTYPE RATE/PRICE North Raleigh148,000sf (30 clear) $3.75/sf lease Inside the Beltline56,000sf (rail served) $3.25/sf lease RTP170,000sf (20 clear) $3.25/sf lease Knightdale120,000sf (21 clear) $2.95/sf lease Clayton490,000sf (30 clear) $3.25/sf lease Clayton Industrial Land $29,000 to $65,000/AC Creedmoor150,000sf (100% HVAC) $1.75/sf lease Butner42,000sf (Manufacturing) $18.00/sf purchase Butner Industrial Land $19,000/AC

21 TRIANGLE INDUSTRIAL OVERVIEW LOOK BACK TODAY PREDICITIONS Ed Brown, SIOR, CCIM NAI Carolantic Realty March 16, 2011

22 INDUSTRIAL PREDICTIONS 201120122013 AbsorptionNegativePositivePositive VacancyUp DownDown RatesStableStableUp Spec ConstructionNone NoneYes Land ValueDownStableUp Construction CostsUpUpUp Job GrowthGoodBetterBest

23 SUPPORT TBJ SPACE QUARTERLY The information TBJ provides helps us all make better decisions. Most of the information in this overview came from TBJ SPACE.


Download ppt "2010 Recap Third consecutive year of negative absorption Warehouse/distribution vacancy stabilized Construction remained nonexistant INDUSTRIAL."

Similar presentations


Ads by Google