Great article in the Triangle Business Journal on the strength of the market down here in North Carolina, particularly in office and industrial.
From the article:
The Triangle’s office, industrial and retail property owners and tenants haven’t seen a real estate market this active in years.
The vacancy rate for office space in the second quarter remained unchanged at 14.2 percent overall and at 8.9 percent for Class A space despite the market adding nearly 678,000 square feet of new office space with four new buildings finishing construction in the quarter.
In retail, owners and developers of the top grocery store chains are falling all over themselves trying to secure sites and start construction on new grocery-anchored shopping centers, or backfill grocery anchor spaces that have been empty for years.
But the darling of the markets so far has been the industrial market.
Not known to be a destination for distribution and warehousing companies, the absorption of industrial space among the Triangle’s warehouse properties reached its highest level since 2006 with 737,603 square feet in the second quarter. The overall warehouse vacancy rate dropped to 13.7 percent from 16.3 percent the quarter prior – the lowest vacancy rate recorded in the Triangle since 2006.
Developers of new warehouse space in the Triangle have proposed plans to build almost a million square feet of additional warehouse space in the region, although only about 230,000 square feet in buildings had broken ground by the last day of the second quarter.
The owners of the proposed Liberty Ridge industrial park on T.W. Alexander Drive have already secured a deal with Implus Inc. to lease 136,500 square feet in the first building that will be breaking ground in the third quarter.
“We are quickly approaching a critically low supply of industrial space,” says Ed Brown, a broker at NAI Carolantic Realty and a member of the Space Committee who specializes in industrial properties. “I recently received a short list of four buildings … for a small manufacturing company interested in purchasing. All four of the buildings in which they have an interest have all recently gone under contract to other buyers.”
Full Article Here: http://www.bizjournals.com/triangle/print-edition/2015/07/31/triangle-commercial-markets-maintain-strong.html