Your SlideShare is downloading. ×
Q1 2012 | industrial  cincinnati, oh the knowledge report                                                                 ...
the knowledge report | Q1 2012 | industrial | cincinnati         UNEMPLOYMENT                                             ...
the knowledge report | Q1 2012 | industrial | cincinnatiINDUSTRIAL SUBMARKET DATA                                         ...
the knowledge report | Q1 2012 | industrial | cincinnati                                                               I-7...
Upcoming SlideShare
Loading in...5
×

Q1 2012 - Cincinnati Industrial

237

Published on

Published in: Health & Medicine, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
237
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
3
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Transcript of "Q1 2012 - Cincinnati Industrial"

  1. 1. Q1 2012 | industrial cincinnati, oh the knowledge report ABSORPTION UP AS INDUSTRIAL MARKET CONTINUES TO MOVE IN THE RIGHT DIRECTION executive summary The Greater Cincinnati industrial market started the year on a strong note, producing 706,211 square feet of positive net absorption for the first quarter of 2012. This positive momentum was carried over from 2011, as the fourth quarter finished on an upswing. The overall vacancy rate stands at 9.2% andmarket indicators the overall weighted asking rate for industrial properties in the first quarter was $3.31 per square foot. Q1 12 Q2 12* northern kentucky VACANCY The Northern Kentucky submarkets showed an impressive 438,011 square feet of net absorption. NET ABSORPTION Most of this activity was tied to the Airport submarket, as this area posted 509,805 square feet of positive absorption. Larger deals of note that contributed to this activity include Schwarz Paper construction — — leasing 316,000 square feet of space at Airpark International Distribution Center #1; Verst Group rental rate — — Logistics leasing 290,521 square feet of space at 1100 Burlington Pike; and LeanCor Supply Chain leasing 106,920 square feet of space at 2265 Progress Drive. Rental rates at the Airport averaged *Projected Change to Following Quarter $3.07 per square foot, while the Florence market was slightly higher at $3.26 per square foot. sUBURBAN OHIO SUBMARKETS On the northern side of the river, Tri-County/Union Centre led the way with 497,710 square feet of positive absorption. General Motors was the largest transaction of note in this submarket, as the company purchased a 394,480-square-foot building at 8752 Jacquemin Drive that they were overall vacancy rate currently occupying. Most other submarkets on the Ohio side showed modest gains, with the exception of Lockland/Evendale giving back 196,057 square feet of space. Rental rates in the Ohio submarkets10.5% ranged from $2.27 per square foot in Hamilton to $4.76 per square foot in the Western Corridor.10.0% construction On the construction side, one large speculative building is still under construction and several smaller build-to-suit projects are continuing to move forward. The speculative building is in Monroe, as IDI 9.5% 9 5% continues construction on its 553,338-square-foot distribution center at 1100 Logistics Way. This building is expected to be completed in May of 2012. Additional construction of speculative industrial 9.0% space is not anticipated anytime soon, but we will continue to see build-to-suit projects hit our market 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 as manufacturing continues to improve.www.colliers.com/cincinnati
  2. 2. the knowledge report | Q1 2012 | industrial | cincinnati UNEMPLOYMENT employment forecast The Bureau of Labor Statistics While the first quarter started strong, we11.00% announced good news for the market, as expect the industrial market to level off10.50% Ohio Unemployment Rate the U.S. unemployment rate continued to again for the remainder of 2012. As US Unemployment Rate10.00% fall. While the validity of these government mentioned in previous quarters, there 9.50% numbers can be debatable, it’s a good are still large blocks of space in 9.00% sign that companies are beginning to hire Tri-County that have yet to hit the 8.50% employees and put people back to work. market. These spaces are listed as The overall U-3 unemployment rate available for lease/sale, but are still 8.00% came in at 8.2% for March, down from occupied to some degree. The spaces 7.50% 8.3% in January and February. In includes Avon Products on Progress 7.00% comparison, in October of 2010, the rate Place, CEVA Logistics on Windisch Road May-11 Sep-11 May-09 Mar-10 Sep-09 Jul-10 Nov-10 Mar-11 Mar-09 Jan-09 May-10 Sep-10 Jan-11 Jul-11 Nov-11 Jul-09 Nov-09 Jan-12 Jan-10 stood at 10.0%. Ohio’s unemployment and the Liz Claiborne Facility on rate is at 7.6%, a nice sign that our state Jacquemin Drive. We should start to see is a little healthier than the other 49 those spaces become vacant in the next states across the country. As commercial three quarters, which will increase the real estate is tied directly to job growth, overall vacancy rate several basis points. we hope these numbers continue to push us in a positive direction. update Recent Transactions first quarter activity Property submarket tenant/buyer size type 8752 Jacquemin Drive Tri-County General Motors 394,480 Sale 11520 Mosteller Road Tri-County Trident Capital 358,386 Investment Sale Airpark International DC #1 NKY Schwarz Paper 316,000 Lease Renewal 1100 Burlington Pike NKY Verst Group Logistics 290,521 Lease 3720 Langley Drive NKY Levi Strauss & Co. 151,444 Lease Renewal 7585 Empire Drive NKY Trident Capital 148,365 Investment Sale 7910-7920 Kentucky Drive NKY Corken Steel 131,329 Sale 375 Northpointe Drive Hamilton/Fairfield Prestige Display & Packing 123,524 Lease Renewal 2265 Progress Drive NKY LeanCor Supply Chain 106,920 Lease 1499 Jamike Avenue NKY Close the Loop 81,200 Lease 4115 Thunderbird Lane Northwest Trident Capital 70,000 Investment Sale World Park Building 8 Tri-County Rite Rug 60,000 Lease 9525 Glades Drive Tri-County Pivotek 51,070 Lease Covington Capital Building Dayton General Pet Supply Ohio Valley 50,000 Lease 106 Circle Freeway Drive Tri-County MH Equipment 43,805 Sale 1320 Russell Street NKY Scott Randall Systems, LLC 35,000 Lease Renewal 300 Distribution Circle Hamilton/Fairfield Cincinnati Grinding Technologies 34,334 Lease 9750 Crescent Park Tri-County K&W Development 30,000 Sale World Park Building 1 Tri-County Target 19,200 Lease 9422 Meridian Way Tri-County Port Logistics 19,200 Lease 9431 Sutton Place Tri-County Cincinnati Abrasives 18,468 Sale World Park @ Union Centre 4 Tri-County Rockwell Automation 16,940 Lease Renewal Crescent Point Commerce Center Tri-County Wheels Pro 16,000 Lease RenewalTransactions are believed to be accurate but not guaranteed.p. 2 | Colliers International
  3. 3. the knowledge report | Q1 2012 | industrial | cincinnatiINDUSTRIAL SUBMARKET DATA QuarterlySUBMARKET Total Inventory Total Vacant SF Vacancy Rate YTD Absorption Avg. Rate AbsorptionAirport 27,221,161 2,445,013 9.0% 509,805 509,805 $3.07Blue Ash 12,787,682 1,086,545 8.5% 68,667 68,667 $3.75Kenton/Campbell County 5,845,329 100,900 1.7% 0 0 $3.90Central/Midtown 47,423,206 4,051,790 8.5% (6,192) (6,192) $2.85Covington 8,338,550 400,477 4.8% 33,773 33,773 $3.64Eastern Corridor 12,650,115 2,823,082 22.3% (44,005) (44,005) $3.30Florence 24,447,909 1,059,130 4.3% (105,567) (105,567) $3.26Hamilton 7,972,378 648,296 8.1% (106,927) (106,927) $2.27I-71 North Corridor 10,980,157 1,535,149 14.0% 76,343 76,343 $3.90Lockland/Evendale 20,650,536 1,097,590 5.3% (196,057) (196,057) $2.85I-75 North Corridor 21,991,003 1,965,268 8.9% (16,339) (16,339) $3.65Tri-County/Union Centre 66,964,416 7,692,188 11.5% 497,710 497,710 $3.41Western Corridor 7,126,143 324,516 4.6% (5,000) (5,000) $4.76MARKET TOTALS 274,398,585 25,229,944 9.2% 706,211 706,211 $3.31 avg. asking rates (per sf-full service gross) quarterly net absorption General Rate Flex Rate Distribution Rate$8 1,500,000$7 1,000,000$6 Square Feet 500,000$5 0$4$3 -500,000$2 -1,000,000 2Q 10 1Q 11 3Q 11 4Q 11 4Q 09 2Q 11 1Q 12 1Q 10 3Q 10 4Q 10 2Q 11 1Q 12 1Q 10 3Q 10 4Q 10 2Q 10 1Q 11 3Q 11 4Q 11 4Q 09 Colliers International | p. 3
  4. 4. the knowledge report | Q1 2012 | industrial | cincinnati I-75 NORTH 522 offices in HAMILTON 62 countries on 6 continents TRI-COUNTY/ United States: 147 UNION CENTRE Canada: 37 Latin America: 19 I-71 NORTH Asia: 36 LOCKLAND/ BLUE WESTERN EVENDALE ASH ANZ: 165 CORRIDOR EMEA: 118 • $1.8 billion in annual revenue CENTRAL/ EASTERN • 1.25 billion square feet under MIDTOWN CORRIDOR management COVINGTON • Over 12,300 professionals INT’L AIRPORT CEO | Principal: AIRPORT Shenan P. Murphy, CCIM +1 513 721 4200 KENTON Colliers International | Greater Cincinnati FLORENCE CAMPBELL 425 Walnut Street, Suite 1200 COUNTY Cincinnati, OH 45202 Colliers International statistics are audited annuallyIndustrial Services Greater Cincinnati | and may result in revisions to previously reported quarterly and final year-end figuresChuck A. Ackerman, CCIM, SIOR Erin M. Casey, GA-C, MICP™ Michael E. Daly, SIORBrokerage Senior Vice President Senior Brokerage Associate Brokerage Senior Vice Presidentchuck.ackerman@colliers.com erin.casey@colliers.com Principal | Cincinnatidir +1 513 562 2266 dir +1 513 562 2225 mike.daly@colliers.com dir +1 513 562 2206John B. Gartner, III, SIOR William K. Keefer, SIOR Steve R. MillerBrokerage Senior Vice President Brokerage Senior Vice President Brokerage Vice PresidentPrincipal | Cincinnati Principal | Cincinnati steve.miller@colliers.comjohn.gartner@colliers.com bill.keefer@colliers.com dir +1 513 562 2252dir +1 513 562 2207 dir +1 513 562 2235www.colliers.com/cincinnati

×