In 2018, Louisville saw a record year with more than 10 million square feet of net absorption in its industrial sector. This is a huge absorption number for any of the Midwest markets and represents more than three times Louisville’s previous record. Louisville was second only behind Chicago out of the Midwest markets tracked by CBRE. The absorption follows a record year for speculative construction as well, as close to 4 million square feet was delivered in 2018. User demand came from all sectors, including automotive, e-commerce, third-party logistics firms (3PLs), manufacturing and medical. Automotive and manufacturing were particularly strong performers. The more notable automotive and manufacturing transactions in 2018 were three Ford Motor Co. leases totaling more than 1 million square feet, as well as New Flyer’s 315,000-square-foot, $30 million transit bus and motorcoach parts fabrication facility in Bullitt County. Additionally, Denso leased 311,000 square feet in Southern Indiana and KCC opened another 224,000-square-foot plant to expand production capacity of its HVAC equipment line. Distribution remains strong in Louisville due to its central location and available workforce. According to a recent report from CBRE’s Labor Analytics Group, Louisville has the highest distribution labor score among the Midwest markets. As …
Northern Nevada’s industrial market remains strong with more than 3.2 million square feet of new speculative space under construction and slated for delivery in 2020. These new projects will push the market well above the 90-million-square-footmark. The vacancy rate is a low 5.56 percent and continues to trend slightly upward. There have been some significant lease transactions in the market. Prologis is building a 598,901-square-foot facility for Makita Tools; Scannell just finished a 200,200-square-foot built-to-suit facility for OnTrac; and 1A Auto recently leased 149,196 square feet at 9175 Moya Blvd. All of these transactions occurred in the North Valleys submarket. The new 270,975-square-foot Longley Commerce Center by Panattoni leased up a majority of its space in the third quarter. This project is a mix of flex and bulk spaces, and is the last viable industrial development in the South Meadows submarket. Polaris completed its 514,555-square-foot BTS in Fernley in the second quarter, while a confidential user just leased 266,000 square feet in the I-80 East submarket. There have also been some significant portfolio sales to institutional buyers. The 1.4-million-square-foot Lear Industrial Center is slated to trade hands in the fourth quarter. Northwestern Mutual sold its 1,776,805-square-foot portfolio to Link Industrial …
NAI James Hanson Brokers Sale of 130,000-Square-Foot Industrial Property in North Bergen, New Jersey
NORTH BERGEN, N.J. — NAI James Hanson has brokered the sale of a 130,000-square-foot industrial building in North Bergen, an eastern suburb of New York City. Located at 7300 West Side Ave., the property features 22-foot ceiling heights. Scott Perkins, Greg James and Chris Todd of NAI James Hanson represented the buyer, a partnership between Blackstone and Roman Real Estate Holdings Inc. Bonnie Heller of Cushman & Wakefield represented the seller, which was undisclosed. The sales price was also undisclosed.
CANAL WINCHESTER, OHIO — The Opus Group (Opus) has broken ground on Winchester Logistics Park, a two-building speculative industrial development in Canal Winchester, Ohio, near Columbus. Construction on a mid-size, 258,000-square-foot and a larger, 556,000-square-foot cross-dock building is scheduled for completion in the summer of 2020. Near U.S. Highway 33, the I-270 beltway and I-70, Winchester Logistics Park will contain build-to-suit office space, 32 to 36-foot clear heights, LED lighting and auto and trailer parking, intended for industrial users. Opus is the developer, design-builder, architect and engineer of record. The development is a joint venture with New York-based AIG Global Real Estate, the real estate equity investment arm of insurer American International Group Inc. (AIG). First National Bank of Omaha provided financing for the project. Brian Marsh and Dan Wendorf of JLL will market the project for lease.
All the recent talk in the Houston industrial market has focused on the amount of distribution space that is under construction or proposed for development. As a result, many industrial real estate professionals are worried about certain submarkets becoming overbuilt. This is a reasonable thought, given that Houston has more distribution space under construction than ever before — roughly 18 million square feet is under construction citywide, compared to the previous high in 2015 of 15 million square feet. However, there is also an exceptionally high level of demand in the market that could easily allow more than half of that space to be quickly absorbed once delivered. What is most promising about Houston’s industrial market — and what has also partially defined the evolution of this space — is the sheer volume of larger requirements. There are currently more than a dozen deals across the city involving users that are seeking anywhere from 400,000 to 1.5 million square feet. This certainly bodes well for Houston’s industrial distribution market, which continues to attract large-scale developers and tenants due to the growing local and regional population. Access to the Port of Houston — which is great for retailers looking for another …
CRANBURY, N.J. — Cushman & Wakefield has negotiated a 233,000-square-foot industrial lease for pharmaceutical manufacturer CMIC CMO USA in Cranbury, a northeastern suburb of Trenton. The company will be the sole occupant of the facility, which was previously leased to Sun Pharmaceutical and will retain much of the same research and manufacturing equipment. Shawn Straka, Chuck Fern, Todd Elfand, Jason Barton, Thomas Tucci, Stephen Shoemaker, Paul Giannone, Kevin Carton, Jaclyn Marques, Elizabeth Rouse and Joseph Vacca of Cushman & Wakefield represented the tenant in the lease negotiations. Gary Hans of Matrix Development represented the landlord, which was undisclosed.
GOODYEAR, ARIZ. — ViaWest Group has purchased a 25.9-acre land parcel at the southwest corner of Elwood Street and Sarival Avenue in Goodyear. Santa Ana, Calif.-based RADOS Properties-Arizona sold the parcel for $4.5 million. ViaWest’s joint venture partner is a Philadelphia-based investment company. The joint venture plans to develop three industrial buildings totaling 410,000 square feet on the property, which is zoned for industrial. Upon completion in early 2021, the project will feature a 284,290-square-foot facility, a 58,473-square-foot property and a 67,476-square-foot building. Each building is intended for single- or multi-tenant use with modern specifications. Construction is slated to begin in March 2020. Allen Lowe of Lee & Associates represented the buyer and seller in the deal.
ITASCA, ILL. — Keyence Corp. has signed an industrial lease for 80,849 square feet at Building II in Bridge Point Itasca, a three-building industrial campus currently under development in Itasca. Keyence, a manufacturer of automation sensors, barcode readers, measuring instruments and digital microscopes, is the first tenant to sign a lease at the 741,621-square-foot project. Bridge Development Partners is the landlord. Keyence is slated to take occupancy in the third quarter of 2020. Building II, spanning 247,176 square feet, will feature a clear height of 32 feet, 34 exterior docks, two drive-in doors and parking for 234 cars. Chris Nelson and Jeffrey Janda of Lee & Associates represented Bridge in the lease transaction. David Haigh of NAI Hiffman and Mike Nicholson of Acclaim Group represented Keyence.
GRAND PRAIRIE, TEXAS — McCarthy Building Cos. is nearing completion of a $40 million helicopter training facility for Airbus Helicopters Inc. and France-based Helisim in Grand Prairie, located in the central part of the Dallas-Fort Worth (DFW) metroplex. The 18,000-square-foot facility will house two helicopter flight simulators, a 6,000-square-foot office space and a 12,000 square-foot simulator hall with a tech room, as well as computer rooms and workshop and meeting spaces. BOKA Powell designed the project, completion of which is scheduled for March 2020.
LEWISVILLE, TEXAS — Paint manufacturer and retailer Benjamin Moore has opened its 238,00-square-foot distribution center at 121 Lakepointe Crossing in the northern Dallas suburb of Lewisville. The company is relocating its local distribution operations from a 70,000-square-foot facility in Mesquite, a property that will continue to serve as a manufacturing plant. The company moved into its new space earlier this month. Mark Collins, Dean Collins and Bill Brown of Cushman & Wakefield represented Benjamin Moore in its site selection and lease negotiations.