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Top 10 things you need to know about the industrial market. Adam Matson, Vice President - Industrial. Interesting Market Conditions. #10. Speculative Development. # 9. Interstate Partners - approved for 5 buildings in Pewaukee Majestic - planning 600,000sf; 1,200,000sf in Kenosha County - PowerPoint PPT Presentation
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Top 10 things you need to know about the industrial marketAdam Matson, Vice President - Industrial
Interesting Market Conditions
#10Brand Xceligent CO-StarUniverse 313,000,000 288,800,000Vacant 35,000,000 21,600,000< 10,000sf vacant 7,600,000
(21%)8,800,000
(40%)
< 20,000sf vacant 11,000,000(31%)
12,400,000(57%)
> 100,000sf vacant - Racine County 630,000(2%)
400,000(2%)
> 100,000sf vacant - Kenosha County 1,200,000(3.4%)
800,000(3.7%)
# 9Speculative Developmento Interstate Partners - approved for 5 buildings in Pewaukeeo Majestic - planning 600,000sf; 1,200,000sf in Kenosha Countyo Zilber - 90,000sf in New Berlino Wanguard - $13,000,000 project in West Allis on 9 acres
Why do we have a shortage of spec development?Costs 200,000sf
building40,000sf building
Construction Cost $7,000,000($35.00/SF)
$2,400,000($60.00/SF)
Land Size (acres) 10 4Land Cost $1,000,000 $400,000Project Cost $8,000,000 $2,400,000Yearly Income ($4.25/SF) $850,000 $170,0009.5% Cap Rate Value $8,950,000 $1,800,000
# 8Short Term Leases
oStabilize cash flow for OwneroCover immediate needs for TenantsoReduced expenses for Tenants
# 7
Tenant Incentives are on the Decrease
oIt is no longer a Tenant’s world• Landlords have decreased
incentives for tenants this past year such as rent abatement
# 6
Elimination of Our Industrial Marketo Mejiero HSA – The Mayfair Collectiono Woodman’s – Waukeshao Wisconsin Athletic Club/Froedtert Health
# 5
Movers & Shakers…
o Amazono Kohl’s
oUnited Natural FoodsoRust-o-leumo Kenall Manufacturing Company
• 1,000,000sf
• 1,100 employees
• $7,000,000 in tax credits
# 5
Movers & Shakers…
o Amazono Kohl’s
oUnited Natural FoodsoRust-o-leumo Kenall Manufacturing Company
• 300,000sf Information Technology Center• Buying former Pro-Health Care Center for
a health and wellness facility• Giving back 104 acres and $2,000,000 in
incentives!
# 5
Movers & Shakers…
o Amazono Kohl’s
oUnited Natural FoodsoRust-o-leumo Kenall Manufacturing Company
• 425,000sf• $32,000,000
# 5
Movers & Shakers…
o Amazono Kohl’s
oUnited Natural FoodsoRust-o-leumo Kenall Manufacturing Company
• 250,000sf addition• $7,000,000• 54 new jobs!
# 5
Movers & Shakers…
o Amazono Kohl’s
oUnited Natural FoodsoRust-o-leumo Kenall Manufacturing Company
• 350,000sf• Relocating from Gurnee, IL• 400 jobs immediately!
# 4
Big Comeback…
oAirport area submarket has significantly rebounded after years of stagnant absorption.
# 3
Hot Markets…
o Germantowno Kenosha
# 2
What did we get right/wrong about 2013?
o Sale valueso Lease valueo Lease termo Velocity
# 1
2014 Expectations…
o 2013 is ending on a high note!
Thank you!
Any questions?
