GILBERT, ARIZ. — DAUM Commercial Real Estate Services has brokered the sale of an industrial building located at 1416 W. San Pedro St. in Gilbert. Sunstone Rover LLC sold the asset to a family-owned corporation for $5.5 million. With the sale, the building will become the headquarters of Swain Electric, a Gilbert-based electrical contractor. Dan Casey of the DAUM Commercial Phoenix represented the seller, while Blake Hardison of Ike Commercial Real Estate represented the buyer in the deal.
By MaCauley Studdard In the last two-plus years, rent growth and net absorption have both reached new heights, fueled by record levels of demand as a result of surging e-commerce sales. While e-commerce sales growth and the ongoing operational trend of maintaining higher inventory volumes has provided a tailwind to industrial fundamentals, there is also a third critically important component of demand growth that could continue to have an outsized influence on the industrial market in the months and years ahead: onshoring supply chain operations. Understanding the broader dynamics behind the onshoring trend is important to accurately measure its influence on the industrial market. Slowing trade growth The rapid pace of growth in global trade has been one of the most significant economic trends of the last half century: the defining characteristic of modern economies. The percentage of the world’s economy attributed to international trade nearly doubled between 1973 and 2008, growing from approximately 30 percent to 59 percent. While international trade remains the single most influential factor in the global economy, that figure has remained somewhat static in the last 15 years. Several factors have contributed to slowing global trade growth, including: • Growing demand for skilled labor • …
By Scott Bluhm, Newmark Zimmer Since 2016, the Kansas City industrial market has been on a hot streak. We observed more opportunities and increased user activity. There have been consistent years of record positive space absorption and the delivery of Class A buildings, whether speculative or build-to-suit. The peak of that hot streak was in 2022. The year concluded with records in positive absorption, vacancy and rental growth. By the end of 2022, Kansas City became the 15th-largest industrial market in terms of square footage, surpassing Seattle. Significant statistics for 2022: •Over 16 million square feet of positive absorption •A vacancy low of 3.6 percent •A 10.6 percent increase in rental rates The year 2023 has been unique due to economic conditions and uncertainty. New speculative construction starts are down approximately 70 percent, with around 2.5 million square feet breaking ground in 2023. Most of the speculative buildings delivering in 2023 were projects that began construction in 2022. Annual net absorption has decreased to 2.5 million square feet in the first and second quarters. For reference, the fourth quarter of 2022 saw a record-setting net absorption of approximately 7.3 million square feet, and the third quarter of 2022 had 3.2 …
MCKINNEY, TEXAS — Lee & Associates has negotiated a 171,398-square-foot industrial lease in the northern Dallas suburb of McKinney. The tenant, farm equipment and accessories provider Pegasus Industries, will occupy the entirety of Building 4 within McKinney Trade Center, which is currently under construction. Ken Wesson and Adam Graham of Lee & Associates represented the landlord, Chicago-based ML Realty Partners, in the lease negotiations. Brett Lewis, also with Lee & Associates, represented the tenant.
HOUSTON — Guardian, a provider of height safety products and systems, has signed a 71,645-square-foot industrial lease at The Mill at 249 in Tomball, a northwestern suburb of Houston. Beau Kaleel and Brooke Swerdlow of Cushman & Wakefield represented the landlord, an affiliate of Greystar, in the lease negotiations. Tom Condon, Jr., Greg Cizik, Edward Edson and John Grimsley of Colliers represented Guardian.
HUNTERSVILLE, N.C. — TD Bank has provided $23.3 million in construction financing to MDH Partners for the development of Phase II of Northcross Commerce Center in Huntersville, a suburb of Charlotte. The second phase will comprise two industrial facilities totaling approximately 254,000 square feet. Chris Drew, Taylor Allison and Jimmy Calvo of JLL arranged the financing, which is the first transaction between MDH Partners and TD Bank. The Atlanta-based developer plans to break ground on the project this month and complete the development in third-quarter 2024.
CEDAR RAPIDS, IOWA — Meridian Design Build has completed construction of a 479,000-square-foot industrial build-to-suit in Cedar Rapids. Scannell Properties developed the project on behalf of a provider of global shipping and information services. Located at 1035 Commerce Park Drive SW, the building features 190 loading docks, 12 drive-in doors, 168 interior van loading positions and 31,977 square feet of office space. Meridian completed significant site improvements to accommodate a 660-car parking lot, 189 van staging spaces, 130 tractor parking spaces and a 330-stall trailer storage yard. Cornerstone Architects provided architectural design services, and Manhard Consulting handled the civil engineering design.
LANGHORNE, PA. — Wellis USA, a manufacturer of luxury hot tubs, has signed a 22,000-square-foot industrial lease in Langhorne, a northeastern suburb of Philadelphia. The building at 181 Wheeler Court sits on 7.4 acres, totals 100,055 square feet and features a clear height of 24 feet. Frank Roddy of locally based brokerage firm Roddy Inc. represented the tenant in the lease negotiations. Andrew McGhee of Colliers represented the landlord, an affiliate of Los Angeles-based Ares Management Corp. (NYSE: ARES).
COVID-19 laid bare many problems inherent in offshore supply chains and spurred widespread interest in reshoring manufacturing to the United States. As companies and communities explore site selection and expansion opportunities, they should remember that manufacturing profitability often hinges on tax strategy. Staging a comeback For the first time in decades, industry and the public sector are working to make American manufacturing competitive in a rapidly changing global marketplace. The recent enactments of the Inflation Reduction Act, the Bipartisan Infrastructure Law and the CHIPS and Science Act have directed billions of dollars into enhancing domestic manufacturing capacity. The semiconductor industry presents a high-profile case study. The United States holds 12 percent of the world’s semiconductor manufacturing capacity, eroded from 37 percent in 1990. The CHIPS Act’s $52 billion in federal funding is intended to strengthen domestic semiconductor manufacturing, design and research and reinforce the nation’s chip supply chains, fortifying the economy and national security along the way. Simultaneously, the United States is becoming a leading producer of electric vehicles and vehicle battery plants. Since 2021, announced U.S. investments in semiconductors and electronics exceed $166 billion, and announced U.S. investments in electric vehicles and battery manufacturing exceed $150 billion. Deciding where …
SCHERTZ, TEXAS — MEI Rigging & Crating has signed an industrial lease expansion and renewal at Doerr Lane Logistics Center in the northeastern San Antonio suburb of Schertz. John Colglazier, Kyle Kennan and Carlos Marquez of Partners represented the landlord, a partnership between Atlanta-based Ackerman & Co. and Baltisse US Inc., in the lease negotiations. David Cartwright of ATCAP Partners represented the tenant, which took an additional 78,362 square feet and now occupies 191,297 square feet.
