Industrial

Industrial Lending, Development Patterns Reflect Downsizing in Industrial Sector, Says InterFace Panel

by Taylor Williams October 12, 2023

By Taylor Williams Tenant demand and availability of capital for industrial deals are still healthy in Texas, but end users and developers are demonstrating a clear push for smaller footprints in their leases and projects. This shift reflects a marked departure from recent years, when massive speculative facilities were financed without hesitation or preleasing and industrial users had little choice but to accept staggering levels of rent growth. Spikes in interest rates bear some, but not all, blame for this emerging dynamic. Local and regional banks tend to be go-to debt providers on industrial projects, and these groups take defensive positions with their capital flows during high interest rate environments. And while reliance on e-commerce and third-party distribution remains deeply ingrained in consumer preferences, users still see value in rightsizing their footprints in today’s market. As such, the industrial landscape is changing in Texas, where exceptionally strong population growth nonetheless ensures that the sector remains on very solid footing overall. But changes are undoubtedly happening. Large-scale spec facilities are being swapped for smaller build-to-suits, and manufacturing deals are taking up a larger share of the development pipeline. Lenders are tightening leverage and demanding more upfront equity for projects that they …

October 12, 2023

Acquisitions Arizona Industrial Top Stories Western

Prologis Acquires Airpark Logistics Center in Suburban Phoenix for $184M

by Kristin Harlow October 12, 2023

GOODYEAR, ARIZ. — Prologis Inc. (NYSE: PLD) has acquired Airpark Logistics Center in Goodyear, a western suburb of Phoenix, for $184 million. Creation and CrossHarbor Capital Partners were the sellers. The transaction marks the largest multi-building industrial business park acquisition in Arizona history, according to Creation. Located directly adjacent to Phoenix Goodyear Airport, the campus spans 170 acres. The first phase, comprising three buildings with 1.4 million square feet of leasable space, was completed last month. LGE Design Build served as the architect and general contractor. The second phase of the project includes 84 acres of undeveloped land for build-to-suit industrial projects. At full build-out, the development will span more than 2.7 million square feet. “The recognition of Airpark Logistics Center’s potential by a logistics real estate leader like Prologis is a testament to the quality of the asset,” says Grant Kingdon, principal of Creation’s Mountain region. “The center’s strategic location, innovative design and growth potential align perfectly with our vision for delivering sustainable developments that meet the needs of modern logistics tenants. This sale is especially significant today given the current market dynamics, where deals of this scale are rare.” Will Strong, Kirk Kuller, Michael Matchett and Molly Hunt …

October 12, 2023

Acquisitions Content Partner Development Features Midwest NAI Northeast Self-Storage Southeast Texas Western

Following Pandemic-Fueled Run-Up in Acquisition Prices, Where Is Self-Storage Headed?

by Sarah Daniels October 12, 2023

Self-storage has had an amazing run since just before the pandemic. Cap rates started near 6 percent, with buildings starting at $150 per square foot. Then came the flood of pandemic capital pushing prices — by mid-2022 prices jumped to a point no one had previously experienced. “In some of the bigger markets, we were seeing per-square-foot prices of $300 and above for the first time,” says Denise Nunez, executive managing director with NAI Horizon. Cap rates fell to as low as 4 percent. “The low cap rates had gotten to such a point where many brokers were not even pricing deals because they didn’t want to miss that extra that they could get on the sale.” But rising interest rates have had an impact on self-storage, as they have had on every other commercial real estate asset class, with prices reversing again. Investors are still unsure of what the Federal Reserve will be doing in the near term with monetary policy. Building costs are high — final delivery construction costs are still higher by 40 percent or more than pre-pandemic. That reality has resulted in investors alternating between cold feet and, with some signs that the Fed may plan …

October 12, 2023

Data Centers Development Industrial South Carolina Southeast

DC Blox Opens 125,000 SF Cable Landing Station in Myrtle Beach, South Carolina

by John Nelson October 11, 2023

MYRTLE BEACH, S.C. — DC Blox, a data center provider based in Atlanta, has opened its Cable Landing Station in Myrtle Beach. The 125,000-square-foot facility is equipped with 19 megawatts (mW) of power and can host up to five subsea cables and colocation space for network and cable operators, communications providers, local enterprises and partners. DC Blox is also building a dark fiber route from the new facility to its communications hub in Atlanta. Google has announced two subsea cables that will land at the Myrtle Beach station, including the Firmina cable connecting Myrtle Beach to Argentina, Brazil and Uruguay, and the Nuvem cable to connect to Portugal and Bermuda. Edge Holdings (a subsidiary of Meta, parent company of Facebook and Instagram) has announced that it plans to land its Anjana cable connecting to Spain.

October 11, 2023

Acquisitions Georgia Industrial Southeast

MDH Partners Acquires New 655,370 SF Industrial Building Near Savannah

by John Nelson October 11, 2023

BLOOMINGDALE, GA. — Atlanta-based MDH Partners has purchased Beltway Logistics Center, a 655,370-square-foot industrial facility located in Bloomingdale, about 15 miles from the Port of Savannah. The seller, a joint venture led by TPA Group, recently delivered the property, which is situated less than one mile from I-16. Joe DeHaven led the acquisition process for MDH Partners on an internal basis. The sales price was not disclosed. The cross-deck facility features 40-foot clear heights, 172 trailer parking spots, 134 dock-high doors, 185-foot concrete truck courts, 2,445 square feet of speculative office space and LED lighting in the warehouse. Notable neighbors of Beltway Logistics Center include Floor & Decor, FedEx and Arco Plastic.

October 11, 2023

Development Industrial Mixed-Use North Carolina Office Southeast

St. John Properties to Develop 165,000 SF Mixed-Use Community in Wake Forest, North Carolina

by John Nelson October 11, 2023

WAKE FOREST, N.C. — St. John Properties has purchased a 30-acre site in Wake Forest, about 13 miles north of Raleigh. The Baltimore-based developer plans to build Wake Forest Exchange, a 165,000-square-foot mixed-use business community comprising flex, research-and-development (R&D), office and retail space. Phase I will include two flex/R&D buildings spanning approximately 95,000 square feet, a 25,000-square-foot office building and a 10,000-square-foot retail building. The remaining flex/R&D and retail buildings will be phased based on leasing pace, with the goal of executing St. John Properties’ entire development plan by 2027. Wake Forest Exchange is expected to support nearly 500 jobs at final build-out and leasing. Jay Taylor of SVN Tar Heel Commercial Realty Inc. represented the unnamed seller in the land sale, and St. John Properties was self-represented.

October 11, 2023

Development Industrial New York Northeast

Simone Development Buys Retail Building in The Bronx, Plans 186,298 SF Warehouse Conversion

by Taylor Williams October 11, 2023

NEW YORK CITY — New York City-based Simone Development Cos. has purchased a retail building in the Morris Park area of The Bronx with plans to convert the property into a 186,298-square-foot industrial facility. The site at 1720 Eastchester Road, which previously housed a 63,000-square-foot Stop & Shop grocery store, liquor store and a Subway restaurant, is adjacent to Hutchinson Metro Center, Simone’s 1.4 million-square-foot mixed-use development. Jonathan Squires and Josh King of Cushman & Wakefield represented the seller, Madison International Realty, in the transaction. Megan Guy, Brian Reardon, Josh Gopan, Dina Gupta and Sean Heneghan represented Simone Development on an internal basis.

October 11, 2023

Acquisitions Industrial Texas

Colliers Brokers Sale of 43,200 SF Industrial Building in Conroe, Texas

by Taylor Williams October 10, 2023

CONROE, TEXAS — Colliers has brokered the sale of a 43,200-square-foot, single-tenant industrial building in Conroe, about 40 miles north of Houston. The site spans 9.9 acres and fronts I-45. Michelle Soderberg of Colliers represented the seller, an entity doing business as JMBG Ltd., in the transaction. Wade Nelson of Nelson Properties represented the buyer, Spring Glass & Mirror Ltd., which will use the building as its new headquarters. The sales price was not disclosed.

October 10, 2023

Industrial Leasing Activity Texas

Lee & Associates Negotiates 26,082 SF Industrial Lease in Arlington

by Taylor Williams October 10, 2023

ARLINGTON, TEXAS — Lee & Associates has negotiated a 26,082-square-foot industrial lease in Arlington. According to LoopNet Inc., the building at 2030 E. Arbrook Blvd. was constructed in 2019 and totals 75,712 square feet. Reid Bassinger and Michael Lee of Lee & Associates represented the tenant, US Elogistics Service Corp., in the lease negotiations. Mark Graybill, also with Lee & Associates, represented the landlord, Mississippi-based EastGroup Properties Inc.

October 10, 2023

Florida Industrial Leasing Activity Southeast

Cushman & Wakefield Negotiates 131,411 SF Industrial Lease in South Florida

by John Nelson October 10, 2023

DORAL, FLA. — Cushman & Wakefield has negotiated a 131,411-square-foot industrial lease at Bridge Point Doral, a 175-acre industrial park in Doral, a suburb of Miami. The tenant, an unnamed Fortune 50 food distributor, will fully occupy Building 6 upon its completion in mid-2024. Multiple media outlets are reporting that the tenant is snack giant Frito-Lay, a subsidiary of PepsiCo. Wayne Ramoski, Gian Rodriguez, Skylar Stein and Ivanna Leitner Perez of Cushman & Wakefield represented the developer and owner, Bridge Industrial, in the lease negotiations. Jeff Hartsook and Adam Talbot of Cresa represented the tenant. Bridge Point Doral will ultimately span 2.6 million square feet, the first phase of which will feature 1.2 million square feet.

October 10, 2023

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