What area is your expertise?
• Huntsville, Ala.
What trends do you see presently in industrial development in your area?
• Speculative construction in the 50,000 to 200,000-square-foot range
What type of industrial product is doing well in your area?
• 5,000 to 10,000-square-foot buildings
Who are the active industrial developers in your area?
• Industrial Properties of the South, Triad Development and Graham & Co.
Please name one or two significant industrial developments in your area. What impact will these projects have on the market?
• Graham & Co. developed a 208,000-square-foot warehouse in 2007 at 255 Short Pike Road. Triad Properties is developing a 102,000-square-foot flex building on New Loop Road across from the Huntsville Airport. Industrial Properties of the South has developed two 42,000-square-foot warehouses on Electronics Boulevard. This new speculative environment for industrial product has been a catalyst for local expansion, new business and new jobs.
Where is the majority of development taking place? Why is this area doing well?
• Huntsville Airport area – final parcels of Jetplex Industrial Park are being developed.
What area do you expect to be the next big industrial development market? Why?
• West Huntsville/Greenbrier exit. 5 miles from Interstate 65
Please describe the industrial leasing activity in your area.
• Leasing has been strong for 5,000 to 15,000-square-foot space.
Please describe the industrial sales activity in your area.
• Several large sales took place in 2006, minimal in 2007.
Please give a measure of industrial vacancy rates and a measure of available sublease space.
• Vacancy is at 4 percent and will increase with new projects in development.
What impact do current interest rates have on the industrial market? What predictions do you have for interest rates and their effect on the industrial market in the next year?
• Investors are more cautious. Interest rates may go down, but it is harder to borrow money with increasing underwriting standards.
What industries do you expect to expand in the next year to absorb a great deal of industrial space? What areas will be affected?
• Automotive
Would you like to make any additional observations about the industrial market in your area?
• Industrial hit a growth period in mid-2006, along with office, retail and residential in response to positive BRAC news in Huntsville.
— Submitted by Jeff Wilke, vice president with the Huntsville, Alabama office of Graham & Co.