GEORGE WEST, TEXAS — Marcus & Millichap has brokered the sale of 281 Mini Storage, a 199-unit self-storage facility in George West, located roughly midway between San Antonio and Corpus Christi. The facility spans 37,440 net rentable square feet. Bryan Quaschnick, Brandon Karr and Danny Cunningham of Marcus & Millichap represented the seller, a private investor, in the transaction. The trio also procured a privately held, Texas-based investment group as the buyer. Both parties requested anonymity.
GRIMES, IOWA — Matthews Real Estate Investment Services has brokered the $17.5 million sale of an Amazon-occupied distribution center in Grimes, about 16 miles northwest of Des Moines. Built in 2019 and located at 1301 Southeast Gateway Drive, the property spans 109,786 square feet. Alexander Harrold of Matthews represented the buyer, a Los Angeles-based family office completing a 1031 exchange. The buyer was seeking an investment opportunity in the Midwest that would provide higher yields compared with California, according to Matthews. Matt Berres, Samer Khalil, Karick Brown and Jeffrey Miller of Newmark represented the seller, Briar Capital Management.
CHENEY AND SPOKANE, WASH. — Colliers has brokered the sales of two industrial buildings for a total consideration of $62 million. Bill Condon and Matt McGregor of Colliers oversaw the two separate transactions. In the first deal, Bridge Investment Group acquired a 306,000-square-foot building located at 9212 W. Hallet Road in Cheney for $40.4 million. The Class A industrial facility was fully leased to a long-term, high-credit tenant at the time of sale. In the second deal, Dogwood Industrial Properties purchased a 111,000-square-foot facility at 15909 E. Marietta Ave. in Spokane for $21.6 million. The Class A property is fully leased to four long-term tenants, including Keystone Automotive.
GILBERT, ARIZ. — San Diego-based Intersection has purchased KeyWest Plaza, a multi-tenant flex industrial property in Gilbert for $13.2 million. Golden Key Industrial Park LLC sold the asset in an off-market transaction. Leroy Breinholt, David Bean, Cory Sposi, Cory Breinhold and Kelli Jelinek of Commercial Properties’ Phoenix office represented the seller in the transaction. Located at 700-734 N. Golden Key St., the asset features 92,750 square feet of multi-tenant flex industrial space. Intersection plans to complete renovations at the property that will improve curb appeal and the overall tenant experience. Improvements will include new paint and upgrades to the parking lot and landscaping. The new owners will also implement a signage program providing tenants with greater visibility. Commercial Properties will continue to manage and lease the property for Intersection.
By Taylor Williams The combination of dwindling vacancies and skyrocketing construction costs is beginning to have a marginally negative impact on the confidence that industrial brokers across major U.S. markets have in their chosen property type, according to the latest sentiment report from the Society of Industrial & Office Realtors (SIOR). For the first time in the report’s history, the average sentiment of industrial brokers that carry the designation, while still very bullish overall, dropped below eight on a scale of one to 10. Specifically, overall sentiment fell from 8.2 in the fourth quarter of 2021 to 7.7 in the first quarter of 2022. The report also identified an environment of rising interest rates as an additional detractor on industry sentiment, though that factor is not unique to the industrial sector. With industrial users heavily investing in their supply chains amid the pandemic and e-commerce boom, there’s simply very little Class A space to be had, especially within infill locations in core markets. Disruptions within those same supply chains have helped drive costs of construction materials and timelines for projects to way-above-average levels, putting further downward pressure on supply growth. As a result, overall industrial leasing activity has slowed. According …
CHICAGO — Four Star Mushrooms (FSM) has signed a lease to open an 11,000-square-foot production facility at 300 N. Oakley St. in Chicago’s Kinzie Industrial Corridor. The facility represents a significant expansion from the company’s current 1,800-square-foot space. FSM’s mission is to revolutionize the cultivation of rare, unique and nutrient-dense mushrooms to help build sustainable food and ecological systems. The new facility will feature a commercial kitchen, wet lab, dry lab, cold storage, retail storefront and dining concept. Dimitri Tsiribas and Michael Conway of JLL represented FSM in the site selection process. Controlled environment agriculture, which involves the cultivation of plants and fungi in an indoor setting, is a rapidly growing sector of the food and agriculture market, according to JLL.
HOUSTON — Ideal Steel Inc., an Oregon-based fabricator, has signed a 66,500-square-foot industrial lease renewal at 5900 Brittmoore Road in northwest Houston. According to LoopNet Inc., the single-tenant property was built in 1969. Jake Wilkinson and Darren O’Conor of NAI Partners represented the tenant in the lease negotiations. Brad Berry and Ryan Wasaff represented the locally based landlord, Welcome Group, on an internal basis.
SAN JOSE, RICHMOND AND HAYWARD, CALIF. — Duke Realty (NYSE: DRE) has started construction of three speculative industrial facilities in Northern California. The projects include: a 302,772-square-foot development with 42-foot clear heights, 47 dock-high doors, 108 truck trailer spaces, 296 car spaces and up to 12,000 amps of power on 17.4 acres at 5853 Rue Ferrari in San Jose. a 153,803-square-foot facility with 36-foot clear heights, 24 dock-high doors, 36 truck trailer spaces and 140 car spaces at 731 W. Cutting Blvd. in Richmond. a 157,725-square-foot property with 36-foot clear heights, 24 dock-high doors, 65 trailer parking stalls and 79 car spaces at 24493 Clawiter Road in Hayward. Chip Sutherland, Rob Shannon and Ben Knight of CBRE are listing brokers for the San Jose asset; Jason Ovadia, Mike Murray, Patrick Metzger and Greg Matter of JLL are handling listing for the Richmond property; and Bob Ferraro, Kevin Hatcher and Chris Van Keulen of CBRE are listing brokers for the Hayward facility.
Like much of the country, the Milwaukee industrial market flourished over the last 12 to 24 months and has continued to shatter records across the board. Tenant demand far exceeded supply, driving vacancy rates down and rental rates up. Pent-up capital chased deals at record numbers, compressing cap rates further in this sector. And new construction continued its speedy pace, with over 8 million square feet on schedule to be delivered in 2022. But with inflation surpassing 8 percent and interest rates on the rise, the question now is how long will we continue this record-setting pace? Just-in-time to just-in-case As supply chain constraints emerged during the pandemic, businesses switched from the widely used just-in-time model to just-in-case, meaning drastic increases in inventory storage and logistic needs for many companies. Tenants scrambled to lease additional space to house what inventory they could get in stock. At the start of 2021, Class A industrial vacancy in Milwaukee was 9.68 percent. By the end of the year, that number had been slashed in half to just 4.39 percent as the flight to quality industrial product exceeded deliveries. In the fourth quarter of 2021, 1.65 million square feet of new industrial space …
CHICAGO — Logistics Property Co. has unveiled plans to develop 1237 West Division, an industrial project on the west side of Chicago that will span 600,000 square feet of logistics space across two floors. The city’s first multi-story warehouse will also offer both rooftop parking and an adjacent five-story parking garage. Logistics Property recently closed on the 11.5-acre land sale in Chicago’s Goose Island neighborhood and received approval from the Chicago City Council for the project. Situated adjacent to the four-way interchange at Division Street and Elston Avenue, 1237 West Division is located 3.5 miles from the Chicago Loop and 15 miles from Chicago O’Hare International Airport. The JLL team of Michael Conway, Leslie Lanne, Dan McGillicuddy and Gavin Stainthorpe will lease and market the property. “1237 West Division provides flexibility for companies that must get closer to their customers,” says Lanne, who leads JLL’s urban infill group. “It gives them access to modern distribution space, which urban core markets are severely lacking.” The first level of 1237 West Division will feature 36-foot clear heights, 28 dock doors and two drive-in doors. The second floor, which will be accessible by separate two-way, double-wide ramps, will feature 33-foot clear heights, 28 …