Hartford Office and Industrial Markets

Report
Hartford
Hartford Office and Industrial Markets
Connecticut Commercial Real Estate Conference
March 6, 2012
BARTRAM & COCHRAN
National Industrial Trends
BARTRAM & COCHRAN
National Industrial Vacancy
BARTRAM & COCHRAN
National Industrial Rents
BARTRAM & COCHRAN
Hartford Industrial Market
• 89,000,000 – 97,000,000 SF Market
• Major firms are relying on CoStar for data
• Functionally obsolete buildings distort the statistics
• Industrial vacancy of 9.5 to 13.3%
• Market has swung from negative absorption to positive
• 400,000 SF of construction projected from 2012-15
• Market cycle – last phase of recession. Good buildings in recovery.
Six- seven years for the market to balance
• 8.5 to 9% going in cap rate for industrial/ manufacturing
BARTRAM & COCHRAN
Industrial Inventory
East
25%
City
6%
North
34%
South
16%
West
19%
BARTRAM & COCHRAN
Industrial – Major Leases
Tenant
Address
Coca Cola Company
555 Taylor Road
Location
Enfield
Fostick Corporation
129 Worthington
Berlin
SF
278,207
250,000
InfoShred LLC ( short term temp) 8 Craftsman Road
East Windsor
75,000
Fletcher-Terry Company, LLC
91 Clarke Drive
East Berlin
45,000
Allstate Insurance Company
15 Bradley Park Rd
East Granby
40,420
Environmental Office Solutions
130 Prestige Park Rd
East Hartford
37,044
ATG Rehab
65 Inwood Rd
Rocky Hill
23,420
HD Supply Waterworks Ltd
One Hartford Sq.
New Britain
21,035
Oxford Performance Materials
30 South Satellite Rd
South Windsor
16,193
Northeast Air Time Gymnastics
215 Moody Road
Enfield
16,000
Thermo Fischer Scientific
2-8 Progress Drive
Manchester
15,000
BARTRAM & COCHRAN
Industrial – Major Renewals
Tenant
Address
City
SF
FedEx Ground Packing Systems
758 Rainbow Road
Windsor
105,300
JDS Uniphase Corporation
45 Griffin Road S.
Bloomfield
84,000
Gifted Expressions
60 Prestige Park Rd
East Hartford
47,920
Keystone Automotive Industries
50 Utopia Road
Manchester
45,000
Lego Systems, Inc
555 Taylor Road
Enfield
30,000
Adaptive Optics Associates
121-141 Prestige Park
East Hartford
27,581
Superior Electric Holding Group
28 Spring Lane
Farmington
27,097
Cronin and Company LLC
50 Nye Road
Glastonbury
22,557
DHL Express USA, Inc.
141 South Street
West Hartford
22,000
Quality Inspection Services
275 Progress Drive
Manchester
18,000
Pilot Freight Services, Inc.
25-27 Kripes Road
East Granby
16,320
BARTRAM & COCHRAN
Top Industrial Sales
Building
City
SF
Price
$ / SF
1 Hartford Square
New Britain
564,000
$3,500,000
$6
1 Griffin Road South (LESRO)
Bloomfield
268,285
$4,292,415
$16
83 Gerber Rd (TicketNetwork)
S. Windsor
194,000
$7,000,000
$36
180 Moody Rd
Enfield
166,000
$2,200,000
$13
231 Weston Street
Hartford
119,790
$1,100,000
$9
265 Rev. Moody Overpass (Restaurant Depot)
Hartford
103,680
$4,100,000
$40
90 Meadow Rd
Windsor
64,000
$2,220,000
$34
101 Industrial Park Road
Vernon
40,000
$779,500
$19.50
10 Eastern Park Road
East Hartford
40,000
$1,200,000
$30
97 Hammer Mill Road
Rocky Hill
28,450
$1,150,000
$40
99 Hammer Mill Road
Rocky Hill
27,500
$1,450,000
$53
170 Weston Street
Hartford
26,576
$1,325,000
$50
BARTRAM & COCHRAN
National Office Trends
BARTRAM & COCHRAN
National Office CBD Vacancy
BARTRAM & COCHRAN
National Office Class A Asking Rates
BARTRAM & COCHRAN
Hartford Office Market
• 25,000,000 SF multi-tenant building market
• Slowly improving activity – going from an average loss of
1,900,000 SF a year for three years to projected (depending on
those interviewed) sharply slower losses to positive absorption
• No major new-to-market leases
• Market cycle: last phase of the recession, poised for recovery
• Stabilized market 7-8 years for CBD, 5 years for suburbs
• Going in cap rate 9.5% (CBD), 8.75% (suburban)
BARTRAM & COCHRAN
Hartford Office 4Q11
Market
Rentable (SF) Vacancy Rate Sublease Rate 2Q11 YTD
(%)
(%)
Leasing
CBD
8,000,000
28%
0.70%
-85,000
Average
Asking Rate
($/ SF/ YR)
$21.00
Outside CBD
2,200,000
10%
0.25%
5,000
$18.50
City Total
10,200,000
25%
0.60%
-80,000
$20.30
North
3,235,000
24%
2.30%
-39,000
$16.00
West
5,900,000
18.5%
4.20%
-45,000
$20.25
South
3,200,000
20.8%
0.60%
78,000
$18.50
East
3,167,590
12%
0.40%
-80,000
$20.00
Overall
25,670,000
22%
1.88%
-166,000
$19.25
BARTRAM & COCHRAN
Impact of Owner-Occupied
Type
Multi-tenant
Owner occupied
Total
SF
25,670,000
12,500,000
38,170,000
BARTRAM & COCHRAN
% Vacancy
22%
?
2011 Major Office Leases
Tenant
Location
City
SF
UBS Realty Investors
10 State House Square
Hartford
48,279
Paychex Corporation
714 Brook Street
Rocky Hill
32,351
Marsh USA
20 Church Street
Hartford
24,647
Pert Group
The Exchange
Farmington
23,000
Ct Children's Medical Center
500 Enterprise Drive
Rocky Hill
22,071
Hartford Healthcare
One State Street
Hartford
22,000
Ovation Benefits
5 Batterson Park Rd
Farmington
19,542
Hangar Prosthetics & Orthotics 10 County Line Road
Cromwell
14,220
Jade Marketing Group, LLC
65 Memorial Road
West Hartford
11,758
Integralis Inc.
310 West Newberry Road Bloomfield
11,361
ATG - Connecticut Inc.
1111 Cromwell Avenue
Rocky Hill
11,170
Ameriprise Financial
CityPlace II
Hartford
10,000
AH Harris
Corporate Center West
West Hartford
10,000
BARTRAM & COCHRAN
2011 Major Office Renewals / Expansions
Tenant
Location
City
SF
City of Hartford
960 Main Street
Hartford
66,281
Conning & Company
755 Main Street
Hartford
55,624
ValueOptions
500 Enterprise
Rocky Hill
44,675
Tymetrix Inc.
20 Church
Hartford
24,647
East Hartford
40,812
Ct Children's Med. Center 60 Hartland
American Express
242 Trumbull Street Hartford
21,465
Stubhub, Inc.
2 Gateway Blvd
East Granby
20,457
Carousel Industries
10 Griffin Road N.
Windsor
18,000
Legal Aid
999 Asylum
Hartford
18,000
Grump Group
Farm Glen
Farmington
17,684
Corporate Translations
77 Hartland Street
East Hartford
17,330
Dechert
90 State House Sq.
Hartford
15,544
BARTRAM & COCHRAN
Office Sales
Address
City
SF
Price
$ / SF
90-100 Avon Meadow
Avon
20,000
$900,000
$45
1577 New Britain Avenue
Farmington
21,000
$1,500,000
$71
135 South Road
Farmington
35,000
$2,800,000
$80
100 Western Blvd
Glastonbury
25,537
$3,400,000
$133
99 Pratt & 196 Trumbull
Hartford
100,000
$1,000,000
$10
Talcott Plaza
Hartford
103,000
$1,230,000
$12
1 Acmat Plaza
New Britain
75,000
$2,800,000
$37
95 Glastonbury Blvd
Glastonbury
148,000
$15,500,000
$104
BARTRAM & COCHRAN
Academic
Tenant
Address
CCMC
300 John Downey Dr. New Britain New Lease
48,000
CREC
U of H Asylum Avenue Hartford
Campus
229 Trumbull St
Hartford
26,208
St Joseph's
College
City
BARTRAM & COCHRAN
Type
Renewal &
Expansion
Expansion
SF
10,000
Institutional
• CREC buying land/ building/ leasing/ renovating
seven magnet schools, including Avon, Hartford,
Enfield and New Britain
• Hartford Hospital building parking garage
• UCONN Medical $1 billion expansion
• Jackson Lab $1.1 billion development
• State considering buying office buildings
BARTRAM & COCHRAN
Jackson Lab
BARTRAM & COCHRAN
Bio-Science
State to create new bio-science enterprise
zones in:
• Hartford
• Farmington
• New Britain
• Plainville
• Bristol
BARTRAM & COCHRAN
Sources
•
•
•
•
•
•
•
•
•
•
CBRE
Colliers
CoStar Group
Cushman & Wakefield
Grubb & Ellis
Integra
Jones Lang LaSalle
RM Bradley
Sentry Commercial
S/L/A/M Collaborative
BARTRAM & COCHRAN
Thank You
Maura M. Cochran, CRE, SIOR
BARTRAM & COCHRAN
64 Pratt Street
Hartford, CT 06103
860 549-5000 x 1
[email protected]
BARTRAM & COCHRAN

similar documents