Real Estate Journal — Industrial / Distribution Centers — May 29 - June 11, 2015 — 13C
www.marejournal.com
M id A tlantic
I ndustrial R eal E state & D istribution C enters By Robert Filley & David Thurston, Marcus & Millichap Strong consumer spending fuels Mid-Atlantic industrial market
A
end, and developers will build 1.5 million feet in anticipation of heightened demand once
With the variety of indus- trial product types and de- mand drivers shifting in each Mid-Atlantic market, investors should consult with a local brokerage market professional before executing an invest- ment strategy. Robert Filley is a senior director in the Washing- ton, DC office of Marcus & Millichap’s National Office and Industrial Properties Group (NOIPG). David Thurston is a vice president investments and director in the New Jersey office of NOIPG. n
n economic recovery across the Mid-Atlan- tic has the region’s in-
and driving rent growth. This growth is whetting investors’ appetites, but a lack of listings
ing properties near shipping terminals and along major transportation routes, with
dustrial mar- ket firing on all cylinders. The region’s a f f l u e n t population, particularly in Washing- ton, DC/Bal- timore and
wi l l c aus e transaction ve l oc i ty t o rise modestly and intensify competition among buy- e r s . A d i - verse pool of investors is 299 THOMAS E. DUNN MEMORIAL HIGHWAY R U T H E R F O R D, N J “With the variety of industrial product types and demand drivers shifting in each Mid-Atlantic market, investors should consult with a local brokerage market professional before executing an investment strategy.”
the Panama Canal expansion and Bayonne Bridge project are complete. Vacancy should improve 50 basis points to 7.5%. Tightening vacancy will facilitate a 4.1% increasing in average asking rents to $6.40 per foot.
cap rates in the mid- to high- 5% range. REITs are targeting newer properties in the Mead- owlands submarket due to the area’s strategic access to NYC, northeast metros and Canada. Net absorption is expected to total 2.5 million s/f by year’s
Robert Filley
David Thurston
Northern New Jersey/New York, has a tremendous ap- petite for goods and services. Strong housing markets in the District and NYC will also positively affect the perfor- mance of the industrial sector. Washington, DC/ Baltimore Properties in the Washing- ton/Baltimore market remain highly sought after as Ama- zon.com and other consumer goods companies drive space demand. An upswing in resi- dential building will gener- ate new space needs for the building trades; specifically, the industry will need to store construction materials. Insti- tutional investors are active, focusing on newer assets in the Dulles Corridor. Cap rates for institutional assets are in the sub-6 percent range due to lim- ited availability. Considerable interest exists in the submar- kets closest to the District as many of these properties offer future development poten- tial and are being converted to schools, alternative com- mercial space, breweries and other higher-end uses. Prices in close-in submarkets can be high, as evidenced by the recent sale of the 800,000 s/f V Street Industrial Park in 1Q for more than $140 psf. Net absorption of 3.2 million s/f will exceed completions and slice vacancy 50 basis points to 8.9% by year’s end. Developers will bring 2.6 million s/f online, primarily in buildings measur- ing less than 200,000 s/f, com- pared to only 2 million s/f in the past two years combined. Average rents are expected to rise 3.7% to $8.05 psf. Northern NJ/NY Northern New Jersey is one of the strongest industrial markets in the country. Its position as a starting point for goods flowing into the northeastern U.S, as well as the anticipated rise in volume at the Port of NY & NJ, are attracting companies to the region, spurring construction
seeking smaller assets along major trucking corridors that are trading with initial yields in the 6-8% range. REITs and owner/users are acquir-
299 THOMAS E. DUNN MEMORIAL HIGHWAY R U T H E R F O R D, N J PRIME MEADOWLANDS WAREHOUSE/DISTRIBUTION FACILITY IMMEDIATE ACCESS TO/FROM: I95/NJ TURNPIKE (EXIT 16W), Rt. 3 & Rt. 17 LOCATION & PROXIMITY TO NYC & MASS TRANSIT: 7 miles to Lincoln Tunnel 1.6 miles to NJ Transit Rutherford Station [Suffern/Port Jervis Rail Line & # 76 Bus Line] Available for Lease 404,000 s/f
BUILDING SIZE:
404,000 square feet
PROPERTY: ZONING:
25.5 acres – Block 219.02 Lot 79 Zone B – Light Industrial & Distribution
LOADING DOCKS:
40 docks (includes 23 interior bays) w/new doors & levelers
DRIVE IN:
1 ramp
OFFICE AREAS: CLEAR HEIGHT:
20,585 sq. ft., 7,714 sq. ft., 2,494 sq. ft. & 1,403 sq. ft.
25 feet
HVAC:
Warehouse: New rooftop gas heating air handler units Office: New rooftop package HVAC units
GAS SERVICE SPRINKLER: PARKING: COLUMNS:
Pipeline quality w/ 120 psig
Wet system with .6 gpm / 3000 sq. ft. density 315 spaces (expandable to 465)
48’ x 30’
PRIME MEADOWLANDS WAREHOUSE/DISTRIBUTION FACILITY IMMEDIATE ACCESS TO/FROM: I95/NJ TURNPIKE (EXIT 16W), Rt. 3 & Rt. 17 LOCATION & PROXIMITY TO NYC & MASS TRANSIT: 7 miles to Lincoln Tunnel 1.6 miles to NJ Transit Rutherford Station [Suffern/Port Jervis Rail Line & # 76 Bus Line] POWER: Services of 2000, 1200 & 600 amps RAIL SIDING: Available (service via Croxton Station) ROOF: Installed 2013 FLOOR LOAD: 500 lbs. per sq. ft. WAREHOUSE LIGHTING: New T5 energy-efficient fixtures 2014 R.E. TAXES: $1.64 per sq. ft.
404,000 square feet For more information, please contact: Brian D. Fitzsimons
BUILDING SIZE:
PROPERTY: ZONING:
25.5 acres – Block 219.02 Lot 79 Zone B – Light Industrial & Distribution
LOADING DOCKS:
374 Millburn Avenue, Millburn, NJ 07041 P: 973.376.7725 E: bfitzsimons@murrayconstruction.com www.murrayconstruction.com Warehouse: New rooftop gas heating air handler units Office: New rooftop package HVAC units 40 docks (includes 23 interior bays) w/new doors & levelers 1 ramp 20,585 sq. ft., 7,714 sq. ft., 2,494 sq. ft. & 1,403 sq. ft.
DRIVE IN:
25 feet 374 Millburn Avenue | Millburn, NJ 07041 973.376.7725 | bfitzsimons@murrayconstruction.com www.murrayconstruction.com
OFFICE AREAS: CLEAR HEIGHT:
HVAC:
Pipeline quality w/ 120 psig No warranty or representation, expressed or implied, is made as to the accuracy of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal ithout notice, and to any special listing conditions.
GAS SERVICE SPRINKLER:
Wet system with .6 gpm / 3000 sq. ft. density
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