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2013 2Q Industrial Snapshot

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2013 2Q Industrial Snapshot Powered By Docstoc
					                                                                                        Industrial Market Snapshot
                                                                                                                         St. Louis • Second Quarter • 2013


                                                                            Market Tracker                Vacancy    Net Absorption        Deliveries          Effective Rent
                                                                            *Arrows = Current Qtr Trend   8.2%       639,164 SF            0 SF                $4.07 NNN


                                                                            Another Quarter of Strong Growth for the Industrial Market
                                                                            Following a strong first quarter, the industrial market realized additional occupancy
                                                                            growth in the second quarter of 2013. A total of 639,000 square feet of positive
                                                                            absorption was realized in the quarter as the vacancy rate held at 8.2%. The growth for
                                                                            the industrial sector marks the fourth consecutive quarter of positive absorption with
                                                                            over 2,100,000 square feet absorbed over that time.

                                                                            The 639,000 square feet of positive absorption included 479,000 square feet of newly
                                                                            constructed space at the Westway I building in Edwardsville. Contegra Construction
ST. LOUIS INDUSTRIAL                                                        Company doubled the distribution center for Procter & Gamble, which expanded into
                                                                            the new space. This expansion represented the only new construction brought to market
Economic Indicators
                                                                            in the second quarter. GM announced that they will continue to expand in Wentzville
                                                                            with the addition of a 114,000 square foot stamping plant. The stamping plant will be
                                                       Q2 12       Q2 13
                                                                            constructed at the same location where they are building a 500,000 square foot body
            St. Louis                                                       shop. Construction on the stamping plant will begin in July 2013 and GM expects the
                                                       1310.4      1319.8
            Employment                                                      press to be operational by early 2015.
            St. Louis
                                                       7.30%       7.00%
            Unemployment                                                    Modern Bulk continued to perform well in the second quarter, realizing 719,000 square
                                                                            feet of positive absorption, though this was partially driven by the build-to-suit for Procter
            U.S. CCI                                    65.4        81.4
                                                                            & Gamble at Westway I. Other significant transactions in the modern bulk space in the
                                                                            quarter included TAGG Logistics relocating and expanding from 147,000 square feet of
            U.S. Unemployment                          8.20%       7.60%
                                                                            office and bulk warehouse space in Maryland Heights to 203,000 square feet of
                                                                            modern bulk space at Hazelwood Logistics Center I and Cord Moving and Storage
                                                                            swapping 55,000 square feet of bulk warehouse space at Earth City Industrial Center 3
    Net Absorption                                                          for 55,000 square feet of modern bulk space on Rider Trail in Earth City. Service
                                                                            centers, bulk warehouses, and office warehouses all took a step back in the second
                   1.5                                                      quarter, losing 62,000 square feet, 72,000 square feet, and 127,000 square feet,
                          1
                                                                            respectively.
Square Feet (Millions)




                         .5
                                                                            Geographically, occupancy growth was realized in the Metro East, South County, St.
                          0                                                 Charles County, and North County, while losses were experienced in the City, Mid-
                         -.5                                                County, and West County. The Metro East had the strongest performance of any of the
                         -1                                                 St. Louis area markets with 510,000 square feet of absorption, primarily driven by the
             -1.5                                                           Procter & Gamble expansion. North County realized 296,000 square feet of positive
                         -2                                                 absorption in the quarter, which was primarily driven by the previously discussed move
                               2008   2009    2010   2011   2012    2013    by TAGG Logistics. St. Charles County realized 207,000 square feet of absorption, which
                                                                            was partially the result of ALMO Distribution occupying 129,000 square feet of modern
                                                                            bulk space at Fountain Lakes II.
    Vacancy Rate
                                                                            The worst performing market in the quarter was the City, which realized 215,000 square
10%                                                                         feet of negative absorption, which pushed the vacancy rate to 8.4%. This loss was
                                                                            largely driven by Sigma Aldrich vacating 127,000 square feet at St. Louis Commerce
          9%
                                                                            Center II and LaBarge Properties vacating 103,000 square feet of space at 3400
          8%
                                                                            Morganford Rd. The City and Mid-County are the only two markets which have not
                                                                            improved since the significant losses experienced in the industrial market in 2009.
          7%


          6%


          5%
           2008                   2009       2010    2011   2012     2013




                                                                                                                                                        www.cassidyturley.com
Cassidy Turley Industrial Market Snapshot
St. Louis, Missouri • Second Quarter • 2013

                                                           TOTAL                                    SUBLET                  DIRECT        VACANCY            CURRENT NET             YTD NET                       UNDER
  SUBMARKET                                                                  INVENTORY
                                                           BLDGS                                    VACANT                  VACANT          RATE             ABSORPTION            ABSORPTION                   CONSTRUCTION

  City                                                       1,574            66,500,462            224,192                 5,371,959        8.4%              (215,408)               (344,696)                                  -
  Metro East                                                  288             27,288,023                 -                  1,304,493        4.8%              510,451                  545,338                                   -
  Mid-County                                                  732             24,856,752             43,656                 2,168,148        8.9%              (105,785)               (121,063)                                  -
  North County                                                588             47,087,727             84,224                 5,044,327        10.9%             295,568                  516,586                               227,500
  South County                                                559             20,423,678            164,500                 1,658,383        8.9%              110,597                  235,729                                   -
  St. Charles County                                          559             26,006,255             20,000                 1,039,958        4.1%              206,708                  223,282                               140,870
  West County                                                 600             22,753,172             27,500                 2,011,943        9.0%              (162,967)                    58,316                                -
  By Property Type
  Modern Bulk                                                  86             30,685,101            153,845                 3,271,595        11.2%             719,131                  744,262                               227,500
  Traditional Bulk                                            267             34,293,586            205,925                 4,540,058        13.8%             (71,575)                     78,271                                -
  Office/Warehouse                                           3,610            99,405,220            157,952                 6,513,152        6.7%              (127,079)                240,898                               140,870
  Manufacturing                                               511             55,057,999             26,350                 2,787,970        5.1%              124,694                  124,367
  Service Centers                                             319             12,806,105             20,000                 1,387,330        11.0%             (62,145)                (129,318)                                  -
  Other                                                       107              2,668,058                 -                   99,106          3.7%               56,138                      54,648
  ST. LOUIS TOTAL                                            4,900           234,916,069            564,072                18,599,211        8.2%              639,164                1,113,492                               368,370



Key Lease Transactions 2Q 13
PROPERTY                                         SF                          TENANT                      TRANSACTION TYPE               SUBMARKET               Industrial Submarkets
                                                                                                                                                                St. Louis, Missouri
5620 Inner Park Dr.                           1,262,648              Conopco Inc. (UniLever)                      Renewal                Edwardsville


372 Hazelwood Logistics Center Dr.            202,613                    TAGG Logistics                             New                   Hazelwood


5415-5463 Phantom Dr.                         126,642                         USPS                                Renewal                 Hazelwood
                                                                                                                                                                                                70                       2
                                                                                                                                                                                                                                            270

12949-12955 Enterprise Way                     88,425                     Store Supply                              New                   Hazelwood                               1
                                                                                                                                                                             64


                                                                                                                                                                                                           4       170                  6         55
160-184 Corporate Woods Ct.                    63,728                 Keystone Automotive                         Renewal                 Earth City                                                 270
                                                                                                                                                                                                                              5
2392 Grissom Dr.                               61,293           Mary Elle Fashions d/b/a Meridian         Renewal & Expansion             West Port                                         3
                                                                                                                                                                                                                                  255             64

                                                                                                                                                                                                               7         55
4238-4240 N. Rider Trail, Ste                  55,049                Cord Moving & Storage                          New                   Earth City                                                 44




Key Sales Transactions 2Q 13
PROPERTY                              SF                         BUYER                                        SELLER                      SUBMARKET

17 Cermak Blvd.                  202,352                      Modineer Co.                          Wainwright Properties Ltd           St. Charles County        1.   St. Charles County             5. St. Louis City
                                                                                                                                                                  2.   North County                   6. Metro East
                                                                                                                                                                  3.   West County                    7. South County
9711-9719 Green Park Ind             80,000               Burdrovich Real Estate                         WestCore/DRA                    Kirkwood South           4.   Mid County

183-189 McDonnell Blvd.              70,703                   WJL Services                                Trustco, LLC                     Hazelwood


5202-5240 S. Thirty-eighth           57,055                  Hayes Dev LLC                                   Bill Austin                   City South


4500 Swan Ave.                       51,500                 JGDD SWAN LLC                                    SSLJ LLC                      City South
                                                                                                                                                                       Tim Walsh
                                                                                                                                                                       Managing Principal
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