Industrial

Property Owners Recalibrate Expectations Following Financing Challenge, Shifting Vacancy Rates

by Sarah Daniels January 30, 2024

High costs, modulating occupancies and a lack of financing options reshaped the industrial, office, retail and multifamily sectors in the fourth quarter of 2023, signaling the determining factors for 2024, according to Lee & Associates’ 2023 Q4 North America Market Report. The industrial sector saw stabilizing tenant demand — the number of new buildings delivered increased in the fourth quarter, while new construction starts slowed. Meanwhile, the office sector’s struggles deepened as more than half of the office leases signed pre-2020 approach their expiration by 2026. With low-rate loans maturing into a high-rate environment, the factors troubling the office sector seem insurmountable in this decade. In the retail market, low vacancies did not lead to booming construction in that sector in the last quarter of 2023 — financing costs plus land and labor costs have hampered new development in spite of high demand. Finally, the health of multifamily markets is tied closely to geography. Sun Belt multifamily properties and their Midwest and Northeastern market counterparts are seeing reversals from the multifamily trends of 2021: formerly fast-growing Sun Belt markets are experiencing slowed rent growth or rent decline, while rent growth for slower-growing, major North and Midwestern metros has grown steadily. Lee & Associates …

January 30, 2024

Acquisitions Industrial North Carolina Southeast

Stonemont Purchases 154,096 SF Industrial Facility in Cary, North Carolina

by John Nelson January 29, 2024

CARY, N.C. — Atlanta-based Stonemont Financial Group has acquired a 154,096-square-foot industrial facility located at 101 Stamford Drive in Cary, a suburb of Raleigh. Built in 1994, the building is situated on 15.9 acres and features 24-foot clear heights, 50 car parking spaces, 12 exterior dock doors and 5,086 square feet of office space. Stonemont plans to renovate the property on behalf of a consumer goods company, which will occupy the building beginning this year. Planned improvements include a new roof, interior upgrades and expansion of trailer parking. The project team includes general contractor Choate Construction and civil engineer WithersRavenel. Joe Messina and Jon Vanderplough of JLL represented the tenant in the lease negotiations.

January 29, 2024

Acquisitions Industrial Self-Storage Texas

Marcus & Millichap Brokers Sale of 426-Unit Self-Storage Portfolio in Kingfisher, Oklahoma

by Taylor Williams January 29, 2024

KINGFISHER, OKLA. — Marcus & Millichap has brokered the sale of the DRD Mini Storage Portfolio, which comprises two buildings totaling 426 units in Kingfisher, about 50 miles northwest of Oklahoma City. The buildings offer a combined 58,760 net rentable square feet of space. Dave Knobler and Charles LeClaire of Marcus & Millichap represented the seller, a Nevada-based limited liability company, in the transaction. The duo also procured the buyer, a Delaware-based limited liability company. Both parties requested anonymity. Steve Greer of Marcus & Millichap assisted in closing the deal as the broker of record.

January 29, 2024

Industrial Leasing Activity New York Northeast

Lumber Plus Signs 33,000 SF Industrial Lease in Ronkonkoma, New York

by Taylor Williams January 29, 2024

RONKONKOMA, N.Y. — Lumber Plus, a distributor of Brazilian woods and flooring products, has signed a 33,000-square-foot industrial lease in the Long Island community of Ronkonkoma. Metropolitan Realty Associates owns the building at 2175 Fifth Ave. after buying it for $6.4 million in 2022. Frank Frizalone, Nick Gallipoli, Thomas Deluca, John Giannuzzi and Ryan Korzekwinski of Cushman & Wakefield represented both parties in the lease negotiations. Lumber Plus plans to move in during the second quarter.

January 29, 2024

Indiana Industrial Leasing Activity Midwest

Bintelli Signs 150,000 SF Industrial Lease in Jeffersonville, Indiana

by Kristin Harlow January 29, 2024

JEFFERSONVILLE, IND. — Bintelli, a Charleston-based low speed vehicle manufacturing company, has signed a 150,000-square-foot industrial lease at River Ridge Commerce Center in Jeffersonville, a city in southern Indiana along the Ohio River. Ashley Jackrel and Matt Ryder of Avison Young represented Bintelli. The duo provided consulting services, location strategy support, labor analytics, economic development incentives and supply chain and distribution planning. Dustin Coffman of PRG Commercial Property Advisors assisted with local site selection. Bintelli plans to invest more than $4 million into the Jeffersonville area and create approximately 67 new jobs with the expansion. The company manufactures golf carts, shuttles, vehicles, parts and accessories.

January 29, 2024

Acquisitions Illinois Industrial Midwest

DarwinPW Realty/CORFAC International Brokers Sale of 93,911 SF Industrial Building in Chicago

by Kristin Harlow January 29, 2024

CHICAGO — DarwinPW Realty/CORFAC International has brokered the sale of a 93,911-square-foot industrial building located at 5841 W. Dickens Ave. in Chicago. The sales price was undisclosed. Terry Lynch of DarwinPW represented the seller, JLO Metal Products. The buyer, Elite Auto Corp., will repurpose the former manufacturing facility into a car sales business. The building is a World War II-era manufacturing facility that has heavy power and bus ducts along with four docks and one drive-in door. Steve Kohn of Avison Young represented Elite Auto Corp., which is expanding from its location in Chicago’s Logan Square neighborhood.

January 29, 2024

Data Centers Development Southeast Virginia

PowerHouse Data Centers Acquires 145 Acres in Northern Virginia, Plans Data Center Campus

by John Nelson January 26, 2024

SPOTSYLVANIA, VA. — PowerHouse Data Centers has acquired 145 acres in Spotsylvania, with plans to develop a data center campus at the site. A joint venture with Harrison Street, the property will serve the data-intensive needs of hyperscale users in Northern Virginia. Dubbed PowerHouse 95, the project will feature three 300-megawatt (MW) substations, the first of which is currently under development and scheduled to provide 150 MWs of power by October 2025. Upon completion, the first substation will provide sufficient power to construct eight or more high-density data centers, and PowerHouse will have the capability to construct four to eight powered shells and two additional substations. McLean, Va.-based American Real Estate Partners (AREP) fully owns and operates PowerHouse.

January 26, 2024

Development Industrial Leasing Activity North Carolina Southeast

Bosch Rexroth Signs 234,706 SF Industrial Lease in Pineville, North Carolina

by John Nelson January 26, 2024

PINEVILLE, N.C. — Bosch Rexroth, a manufacturer of automated machines and hydraulic equipment, has signed a 234,706-square-foot industrial lease at Carolina Logistics Park, a 308-acre industrial park in Pineville. Construction on the build-to-suit facility, which will be situated about 15 miles south of Charlotte at 12026 Carolina Logistics Drive, is scheduled to begin in February, with completion expected in December. Beacon Partners is the developer and landlord of Carolina Logistics Park. Other tenants at the property include W.W. Grainger Inc., Amazon, Carolina Foods and Empire Distributors, which occupy a total of more than 2.5 million square feet of manufacturing and logistics space. Kent Ilhardt, Ryan Harder, Matt Treble and Patrick McGrath of Cushman & Wakefield represented Bosch Rexroth in the lease negotiations. The project team includes general contractor The Conlan Co., Merriman Schmitt Architects and Orsborn Engineering Group.

January 26, 2024

Development Industrial Texas

Brookfield Properties Breaks Ground on 792,139 SF Industrial Project in East Austin

by Taylor Williams January 26, 2024

AUSTIN, TEXAS — Brookfield Properties has broken ground on Park 290, a 792,139-square-foot industrial project that will be located off Decker Lane in East Austin. Park 290 will consist of four buildings that will range in size from 76,000 to 321,000 square feet. Building features will include 32- to 36-foot clear heights, ample car and trailer parking and LEED certifications. CBRE is the leasing agent for the project, which is expected to be complete before the end of the year.

January 26, 2024

Development Industrial Texas

LG Electronics Opens 100,000 SF Manufacturing Facility in Fort Worth

by Taylor Williams January 26, 2024

FORT WORTH, TEXAS — LG Electronics, a division of South Korean conglomerate LG Corp., has opened a 100,000-square-foot manufacturing facility in Fort Worth for the assembly of electric vehicle (EV) charging stations. According to local broadcast news outlet WFAA, the facility is located at 2153 Eagle Parkway in the Alliance submarket on the city’s north side. The facility will have an annual production capacity of more than 10,000 units and has been designed with support for future expansion in mind.

January 26, 2024

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