Virginia Industrial Landscape in 7 Minutes

This week, Cushman & Wakefield published a report on the state of the industrial market in this uncertain economic climate.

Thalhimer’s Industrial Specialists weigh in on their area’s industrial market forecast:

  Virgil G. Nelson, CCIM, an industrial specialist in Thalhimer’s Fredericksburg market commented, “The Fredericksburg, Virginia industrial market is beginning to rebound.  Leasing activity is up over last year and several larger vacant industrial for sale properties are now getting renewed attention and going under contract.  The lending climate appears to be thawing for end users and companies are at least considering expansion and acquisitions which had been on hold for the last 18 months. “

 William C. Throne, CCIM, SIOR, ALC, an industrial specialist in Thalhimer’s Virginia Beach office noted, “The industrial market in Hampton Roads is in some ways still a Landlord’s market.  Tenants searching for space between 10,000 and 30,000 square feet may find the picking a little slim.  If you require dock and grade level loading, clear height in excess of 24’, and a central location to serve all of Hampton Roads, don’t be surprised to find only two or three properties available.  Tenants can however, still expect some reduction in rental rates.”

   Evan M. Magrill, CCIM, SIOR, an industrial specialist in Thalhimer's Richmond office commented, "Leasing activity has been extremely low in 2010. Great occupancy opportunities exist for companies looking for new or additional space.  Landlords are offering tremendous incentives to lease or sell vacant properties and there are several available spaces to choose from. The market is still a "tenants" market, however as the economy picks up we expect to see more activity and fewer incentives available. 

 Kent Roberts, an industrial specialist in Thalhimer’s Roanoke office comments, “There has recently been an up tick in interest in industrial properties in southwest Virginia, particularly in smaller spaces. The bright spot in the market is the New River Valley. There have been two significant announcements in this market. Phoenix Packaging will locate its North American headquarters and manufacturing facility in a 109,000 square foot facility in the town of Dublin, Pulaski County. The facility was formerly occupied by Findley Industries, a supplier to the automotive industry. Phoenix will invest on the order of twenty million dollars in the facility and employ 240 people. In addition it has been announced that the Intermet (Radford) Foundry in Montgomery County will reopen under new ownership. The new owner is expected to employ 300 people in the 200,000 square foot facility. Falling Branch Industrial Park also in Montgomery County is on the short list for a new data center. Details about this opportunity have not been released.”

  Norman Moon, CCIM, SIOR, CRE, FRICS of Thalhimer's Lynchburg office noted, "The Lynchburg industrial market is dominated by owner occupied properties, and traditionally there has been very little activity of a speculative nature.  At the present time the market is in balance with little available product; especially in sizes in excess of 10,000 square feet.  Most of the available inventory is older with lower ceiling heights and often less than desirable dock access. Due to the lack of supply, rental rates have seen less downward pressure than other property types and typical deals in the 5,000 to 20,000 square foot range have been bringing NNN rental rates in the $4 to $5 range. While activity on the tenant side has been fairly light, there are several users who are cautiously eying expansions should the right fit emerge. While the current demand doesn't warrant new construction at this point, well located, quality properties should do well if they come on the market."

 To read the full Cushman & Wakefield report please click on the link:  The U.S. Industrial Landscape in 7 Minutes.