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absorption. I.3u]k warehouse reported
<br />[' 'r~''b vacanc'v aud nx>re tha^ I uaillion
<br />x}ware toot of absorption in WOU7. One
<br />of the ]ar,;er (:calk deals watt I3Al:: S~stent
<br />to}~_inl; ;ur a<aditiona] 1 I O,t)o0 scL It. rr. Riv. a
<br />I~oac1 Industrial Center in Iridh^y: Office
<br />slao~c~rooan ret~iu-tcd 7 , 8`:'~~ vacaticc~ aud.
<br />'h5.`J`a'> c}. ft. of absorptior ira "'i`on'.
<br />CONSTRUCTION CONTINUES
<br />Cun~ap}eted construetioa~ I rr~;ects t:{rli;.'-
<br />ere*d 1.] rui7lion square feat of space in
<br />'il0 i (7 y,;,:17 sq. tt. irr tl~e second halt ).
<br />17c,pite slr>ty ;thsa~rptioat in the }}ast .ix
<br />aatonths, decelopz:rs are cc>ufiderat in the.
<br />anarket-----nine lnuldiu~=s aa- uni{ea-s~av tu...
<br />tile:<,, I,O~) ~,~i30 sq. Ft. All f}~ur subtn2rke><
<br />aac' treeing s}~aeeulatiti-e decelopntent.'~Ien
<br />lnaildings are planned totalin, `> i `i,51 i) sq.
<br />tt., and nanny ol~ fho~esltoul<I stiar"C an ?i}(ils,
<br />r3 pasitinc ampacr of dre pons}u~; slogs,...
<br />doss-n is a ~eculiriu, offaFconsrrucnor, costs
<br />because industrial deco}oilers :u-e no longer
<br />roanl~>.ting~s~it:hrestdeaatz.i' ~trt~eo],;rs for
<br />lau<'1, labor and mate rials_
<br />STRATEGIC DEVELOPMENT OCCURRING
<br />f ~et~t:}opaa s are, di< }ng itcto saabnuu-kets
<br />and fiudin},~ niche trth littae conapeo-
<br />tion. In other wards. they arr. inking land
<br />},ositions an strafe is }ocari<>>~is tl~aat are
<br />supp.v--~constr;uueci. The}' ae delving into
<br />}~.u is or I ake~~~i]Ie, I3urnsvillc:, I31~une and
<br />AppleV'alleysvhe~e d.vre~Iimitedconi--
<br />pc~ting product. lx`haar tl~ac~ rnaxket turns,
<br />developers G~~}tla good. su ue.~;ic site, swill be
<br />at a eornpetitice advanta:~e. C 7ne es;ranple
<br />is first Industrial Realty°'liust's Pura;}rase
<br />oil=lo acres rn L.ake~~~ille, a high-demand
<br />niche market, c4ith plans for abuild--to-s`taa
<br />for LJpouer Corp. The laud. also v.~ii1 sup-
<br />~~ort additional build ro-suits .rnd specta]a-
<br />tive <]et~rlo}~anrne.
<br />NEW RATE LEVELS BEING QUOTED
<br />Rental rates mc:reasec! si,~nificautly Liar
<br />quzd}ty hrop~-rti%s Burin, t}ae p;r r ttii-v
<br />v~~rr~ --on atic.a ,,e 5"" - -}wusbed Irv hi Sher
<br />raet~, coaastruction rat~:s. Con:~55ion;t~roc
<br />all cubnt;:3kcts dimiarisbed.A~~cragc new
<br />construction r-arcs are <GIO anc{ ~?.'some
<br />landlords are askira~.; S+I? :aid '*6.
<br />"T'h~~r~~ i, less Sticker shock. li.crs aa~e vv'ilI-
<br />ing to pap laighrr nrss consa:rut;tior: rates
<br />iFthrc creed ncs~~er, eI[icient space in tip,]'at
<br />urarl.tts.'l~~bcre is lirde rpom to Mach rate
<br />further. bu~i.e,-er, wuil anorc ;a~~,a esssve
<br />leasrns; aetiVov occurs.
<br />MEDICAL USERS ARE ACTIVE
<br />Med-tech can,.{ }tealda, trc'-~ri~~lat~~d com-
<br />p:un~s, users svho rcq pare ]:i;,her--iinisla
<br />slaaa ~'c, arc: gtts~ arrg and taking anore;pau'.
<br />ht the Soutlaea~c, Li±e~s~orks, Stavt~~el1 arrc3
<br />;~lidti~:etit "';ptca.al tier; aceti sigrc d deal;.
<br />In thy; Uortl t°est.Uascu}ar Solutions and
<br />Nlinnrexh C;oa p. signc~{ leases aud cre3
<br />1'nc. a, ronsidea mg~ _i luild-to-gait. In the
<br />South~le~st, }~ilniTct: Corp.aiad ~ttrtnoctics
<br />-- ^ Absorption ^ construction INDUSTRIAL ABSORPTION AND CONSTRUCTION
<br />6
<br />5
<br />4
<br />N 3
<br />z
<br />o
<br />J Z
<br />w 1
<br />w
<br />w
<br />~ o
<br />a
<br />0
<br />c ~ .~__
<br />completed deals. In thr ~iorthcast, Cola>-
<br />plast signed a large base.
<br />The Outlook
<br />As users becotrre rnorc cc,nfident in the
<br />economy and their business, ;ibsi:>rption
<br />sh<nald bourre;e back to approximately
<br />l .~ million sgn;ue feet in the Yu-st luau of
<br />2iiCt3, led by the Northw<st and Nortb-
<br />east. Seti'eral lair ~~ ]uses ue alreadt signed
<br />2nd ~~'ill be reported iu nest ytaartcr's data
<br />~s~hen teucuats take occupancy. I3ag users are
<br />scouting all of the submaa lots, and if some
<br />take s}?~a ~. ~'; absorption ctinll spike.
<br />Spi^ctriztivc de~el4rprnent will continue
<br />with more than i 1rti11ion square Feet
<br />undersa~a~.; asauch of ctirl~aich Should be dcliv-.
<br />erect in ~QU8. Tbis csdll likely push v:artn-
<br />cies up trataporarily: Build-to-suit activilti
<br />~sil] also arndnue to he stron~~- .
<br />A}though a stri?n~~ }nc{ustrial base is health~>
<br />for coanrnunit}es, it's I;etting harder to
<br />develop industri;il in many cities. T~C;ere`s
<br />olteu the auiiude of"uat in ntv back-
<br />~'ard:' Industrial is the least desirable
<br />pmduct t~>pc, :nrd some cities are makiu~~
<br />it ettrcanely dit£icult io get tluough the
<br />Follot~ vr~ sreadv incr•ases <{ur{ug the past
<br />tc~-o years, rates hale reached a plateau.
<br />Rai~es hotald retnairt stable. If tnorc~~ c~e;tis
<br />start i,ccurring, tltc rc run}' be moan to push
<br />rates a bit further. ^
<br />
<br />(Gaol
<br />ttl
<br />'97 '98 'Y9 '00 '07 '02 '03 '0, 'OS '06 '07
<br />Sou!ce: Ur,i[ed Properties
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