Report: County Fills Half its Vacant Industrial Space
Posted
Jordan Fouts-
Kosciusko County cut its vacant industrial space in half last year, according to a report from Bradley Company. In its 2012-2013 “Market Study: Insight & Analysis,” the South Bend-based real estate company reports that the county began 2012 with about 925,000 square feet of actively marketed industrial space. It ended the year with just over 410,000 square feet of industrial space. Average asking rates for that space increased slightly from 2011, according to the report, and are expected to continue to gradually increase as vacant space fills. Asking rates for general-industrial and manufacturing space now range from $2.95 to $3.50 per square foot, triple-net, and rates for warehouse and distribution space from $2.75 to $5.25 per square foot, triple-net. The industrial sector of the county saw about $8.7 million in sale transactions throughout 2012, says the report, with the average transaction valued at around $482,000. It notes significant transactions include the $1.2 million sale of the former Liberty Homes manufacturing facility in Syracuse to Patrick Industries. The report also notes that the vacancy rate in the county decreased about 3 percent throughout the year, ending at just under 3 percent. The most significant decrease in vacancy was in manufacturing, and vacancy is expected to remain at similar levels this year due to a lack of new construction, the report says The Kosciusko Economic Development Corp. “played a major role in causing this to happen,” KEDCo President George Robertson said in relating the news. He also noted that the 3 percent vacancy rate compares favorably to St. Joseph County at 12.5 percent and Elkhart at 5.6 percent. The report also notes that the office vacancy rate increased at the outset of 2012 to 4.7 percent, falling to 4.2 percent at the end with about 77,000 square feet actively marketed. The office vacancy rate is expected to remain stable in 2013, with construction of new space at a standstill. Average asking rates for office space increased slightly from 2011, ranging from $11 to $13.50 triple-net per square foot for Class A space, and $9.50 to $12.75 for Class B. About 20 office sales totaling just over $9.5 million were transacted in the county last year, averaging $530,000 per transaction. The report notes significant transactions include the $6.2 million investment sale of the Beyer Medical Building in Warsaw. The retail market in the county saw an increase in the amount of actively marketed space in late 2012, rising to 3.5 percent vacancy. Average asking rates for new construction retail space ranges from $12 to $18 per square foot and $8 to $10.50 per square foot for second-generation space. The county experienced more than $15 million in retail sales transactions in 2012, averaging $340,000 per transaction. Significant transactions included the $6.5 million investment sale of the Kohl’s department store building. Average monthly rental rates for multi-family housing increased significantly for one-, two- and three-bedroom units from 2011, by an average of $50 per month, the report also states. One-bedroom units averaged $523 per month, two-bedroom units $648 and three-bedroom units $717. The occupancy rate slightly increased to 97.6 percent, and with a lack of new construction, rates and occupancy are expected to remain stable. Approximately $3.9 million in multi-housing investment sales were transacted last year, with transactions of multi-housing complexes with fewer than 50 units being the most common. The full report is viewable online at www.bradleyco.com/market_study/
