Industrial

Houston Industrial Market Has Come to Reflect City’s Economic Diversity

by Taylor Williams January 12, 2018

The resiliency of Houston’s industrial real estate market is truly astounding. Outsiders have always considered Houston to be an “oil town” whose economic success is tied to the geopolitical intricacies of the international energy markets. Yet three years into the oil and gas downturn, Houston has proven that it has a truly diversified economic base. The city’s industrial real estate market has consequently enjoyed a disproportionate benefit of that concerted effort to establish a truly balanced economy. From 2009 to 2014, while the national economy sputtered along due to anti-business policies of the Obama administration, Houston enjoyed a countercyclical economic boon as all sectors of the oil and gas industry added jobs, increased investment and drove demand for oil service-related real estate. Manufacturers and distributors made significant real estate commitments to property and equipment as they worked to meet the demand for materials and services related to the growth in domestic shale exploration and production. When the music stopped in November 2014, outsiders and pundits threw their hands in the air, called it the end of Houston’s growth story and declared that it would be the 1980s all over again. Houston real estate veterans, however, trusted the diversified economy and …

January 12, 2018

Industrial Market Reports Midwest Midwest Market Reports Missouri

Kansas City’s Industrial Market Shows Record Absorption in 2017

by Kristin Harlow January 11, 2018

Over the last five years, Kansas City has seen a flurry of activity in the industrial sector. Since 2012, we have seen approximately 22.7 million square feet of new Class A industrial space hit the market, with speculative development and build-to-suits. Considering that Kansas City had only about 14 million square feet of Class A industrial space prior to 2012, these additions have had a huge impact on our marketplace. Prior to big box speculative development in Kansas City, it was hard to land large users due to lack of available product. These users did not have the time to wait for build-to-suit projects to be completed, so if product wasn’t readily available, they would move on to a different market. As a result, developers began to introduce speculative buildings, meeting this demand for new Class A product. Kansas City has thus emerged as a major player competing for larger users and their requirements. This year alone we have seen record absorption numbers and are not showing any major signs of slowing down anytime soon. The two major drivers that are taking this space are e-commerce and logistics users. The new demand for larger spaces has increased the average size …

January 11, 2018

Florida Industrial Southeast

IPA Brokers $32.5M Sale of 41-Building Industrial Portfolio in South Florida

by Camren Skelton January 10, 2018

WEST HIALEAH, FLA. — Institutional Property Advisors (IPA), a division of Marcus & Millichap, has arranged the $32.5 million sale of West Hialeah Industrial Portfolio, a 376,016-square-foot industrial warehouse portfolio in West Hialeah, located roughly 11 miles northwest of Miami. The portfolio comprises 41 freestanding, multi-tenant buildings arranged in two separate clusters: one west of the Red Road corridor and north of the Hialeah Expressway and the other west of West 16th Avenue and north of Okeechobee Road. The buildings range in size from approximately 4,000 square feet to 28,000 square feet. Douglas Mandel and Benjamin Silver of IPA arranged the transaction on behalf of the seller, The Realty Associates Fund VII, an affiliate of TA Realty. The team also procured the buyer, Cofe Cix West Hialeah LLC. According to IPA, 95 percent of the portfolio’s leases have triple-net structures with annual rent increases that average roughly 4.5 percent.

January 10, 2018

Industrial Maine Market Reports Northeast Northeast Market Reports

Speculative Industrial Development Picks Up in Southern Maine

by Taylor Williams January 10, 2018

In Southern Maine, we have an inventory problem. An inventory shortage, that is. During the recovery, there has been a steady flight to quality in all sectors including office, retail and, most strikingly, the industrial market. For the seventh consecutive year, the Greater Portland industrial market vacancy rate has dropped. We are now hovering close to a 2 percent total vacancy, which is grossly inhibiting end-users and growth. Throughout 2017, we worked with buyers and tenants that struggle to find suitable relocation and growth opportunities. Multiple offers and off-market sales have become commonplace, which frustrates end-users. We are coaching our clients to remain patient, flexible and communicative in this fluid and competitive market. Accordingly, the limited inventory drastically increased both lease rates and sales pricing for industrial style space. Sale price trends, in particular, deserve a closer look. In 2011, at the tail end of the recession, Class A and B industrial buildings were selling in the $40-per-square-foot range. Sales were almost exclusively going to owner-user businesses who were bullish enough to bet the economy would turn. Today, those businesses are competing with a smaller inventory pool, and against investors looking to diversify their portfolios. Quality industrial buildings are now …

January 10, 2018

Industrial Washington Western

CRG Acquires 1.6 MSF Former Intel Logistics Campus in Washington for Redevelopment

by Nellie Day January 9, 2018

DUPONT, WASH. — CRG has acquired DuPont Corporate Center, a 1.6 million-square-foot regional logistics hub formerly occupied by Intel in DuPont, for an undisclosed sum. The campus is located at 2800 Center Drive. DuPont Corporate Center includes a 340,000-square-foot facility that will undergo extensive capital improvements. Phase I of the development is designed to include a 750,200-square-foot distribution facility. Construction is expected to begin this summer. Phase II will include a 494,900-square-foot distribution facility. The center is situated near the Port of Tacoma, between Seattle and Portland, Ore. CBRE represented the seller in this transaction and will head up CRG’s leasing efforts for the existing building. Wilma Warshak of Washington Real Estate Advisors will market the facilities under development.

January 9, 2018

Industrial Texas

Bob Moore Construction Delivers 350,000 SF Distribution Center in Metro Dallas

by John Nelson January 9, 2018

WILMER, TEXAS — Bob Moore Construction has completed Interpoint Distribution Center, a 350,000-square-foot industrial facility located at 3800 N. Interstate 45 in Wilmer, roughly 15 miles southwest of Dallas. The developer, Houston-based Skyhawk Partners, purchased the site along with J.A. Billip Co. Other members of the project team include leasing agent Colliers International and architect Alliance Architects. The facility is situated near the Union Pacific Intermodal and near facilities leased to FedEx, Procter & Gamble, Amazon and Shippers Warehouse.

January 9, 2018

Industrial Top Stories

Blackstone Property Partners to Acquire Pure Industrial Real Estate Trust for $3.8B

by Katie Sloan January 9, 2018

VANCOUVER, BRITISH COLUMBIA — An affiliate of Blackstone (NYSE: BX) has entered into an agreement to acquire Vancouver-based Pure Industrial Real Estate Trust (PIRET) (TSX: AAR-UN) for $8.10 per trust unit — $3.8 billion — in an all-cash transaction. The transaction price represents a 21 percent premium to the closing price of PIRET units on the Toronto Stock Exchange on Jan. 8. Blackstone will complete the acquisition through its real estate investment arm, Blackstone Property Partners. “The trust has accomplished tremendous growth in the 10 years since the initial public offering in August 2007,” says Rick Turner, chairman of PIRET’s Board of Trustees. “Since inception, we have generated a total return in excess of 345 percent and we have built a platform that has made us a leader in the Canadian industrial REIT space.” The transaction is structured as a statutory plan of arrangement under the British Columbia Business Corporations Act. Completion of the transaction, which is expected to occur in the second quarter of this year, is subject to customary conditions. PIRET will continue to pay its normal monthly distributions through closing of the transaction. BMO Capital Markets is acting as financial advisor to PIRET, while Greenhill & Co. Goodmans …

January 9, 2018

California Industrial Western

Rexford Industrial Purchases 416,843 SF Industrial Portfolio in Southern California for $62.7M

by Nellie Day January 8, 2018

LOS ANGELES — Rexford Industrial Realty has acquired a four-property industrial portfolio in Southern California for $62.7 million. The portfolio contains a total of 416,843 square feet. The assets are fully leased with below-market, in-place leases rolling over in the next 20 months. The transaction includes 302 S. Rockefeller Ave. and 4355 E. Brickell St. in Ontario, along with 12622-32 Monarch St. in Garden Grove and Hanan Way in the Pico Rivera submarket of Central Los Angeles. Rexford also sold 77-700 Enfield Lane in Palm Desert for $2.4 million.

January 8, 2018

Industrial New Jersey Northeast

NKF Brokers Sale of 254,000 SF Industrial Portfolio in Northern New Jersey

by Amy Works January 8, 2018

NORTHERN NEW JERSEY — NKF Capital Markets has arranged the sale of an industrial portfolio of four assets located throughout Northern New Jersey. Tulfra Real Estate sold its 100 percent interest in the properties, which total 254,000 square feet, for an undisclosed price. The single-tenant properties, ranging in size from 38,000 square feet to 141,000 square feet, are occupied by a diverse tenant roster for a wide range of uses, including plastics manufacturing and assembly, light industrial, storage, office and private label supplement development. Kevin Welsh, Brian Schulz and Jason Emrani of NKF represented the seller and procured the buyer, a private high-net worth investor based in Airmont, N.Y. Additionally, Jordan Roeschlaub, Dustin Stolly, Dan Fromm and Robert Tonnessen of NKF Capital Markets Debt & Structured Finance team secured acquisition financing for the purchase.

January 8, 2018

Connecticut Industrial Northeast

Western Express Acquires 12.8-Acre Facility in Plainfield, Connecticut, for $1.7M

by Amy Works January 8, 2018

PLAINFIELD, CONN. — Western Express, a truckload carrier, has purchased a 12.8-acre facility at 1293 Norwich Road in Plainfield. P. Camp LLC of Jewett City, Conn., sold the property for $1.7 million. The property comprises two adjacent parcels and a 30,740-square-foot building. This is will be ninth location for the Nashville, Tenn.-based truckload carrier. Ron Lyman of Lyman Real Estate Brokerage & Development represented the seller and buyer in the deal.

January 8, 2018

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