market survey | huntsville - Huntsville/Madison County Chamber of

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market survey | huntsville - Huntsville/Madison County Chamber of
2016
MARKET SURVEY
|
HUNTSVILLE
Polaris Plant | Photography by SellersPhoto
GRAHAM REPORT 2016
HUNTSVILLE, ALABAMA
The 2015 Huntsville commercial real estate market performed well in the industrial and retail
sectors. The office market, however, continued to lag, but it appears the worst might be over
and some improvements should be seen by the end of 2016.
The industrial market vacancy rate fell to 7.60%, the lowest rate the Huntsville market has seen
since 2008. The Polaris plant announcement (front cover) was great news for the area and has
led to several new suppliers moving to the Huntsville market. The GE Aviation announcement
should also help decrease the amount of industrial supply in the area.
The retail market remained active with several new retailers, including Cabela’s, Whole
Foods and At Home, opening in 2015. The largest new development was the purchase of 200
acres from Intergraph Corporation for the planned Town Madison development. The biggest
redevelopment transaction for the year was the purchase of the struggling Madison Square Mall.
Vacancy rates for the overall office market rose again in 2015 to 19.31%, while the multitenant vacancy rate increased to 25.03%. Class-A office buildings fared the slowdown well with
vacancies remaining below 8%. Absorption was positive for the year, hopefully signaling that a
slow recovery is beginning.
TA B L E O F C O N T E N T S
Industrial Market Overview . . . . . . . . . 1
Jetplex Industrial . . . . . . . . . . . . . . . . . 2
North|Central Huntsville Industrial�������� 3
Chase Industrial . . . . . . . . . . . . . . . . . . 4
Office Market Overview . . . . . . . . . . . 5
Central Business District Office��������� 6
Jetplex | Madison Office . . . . . . . . . . . 7
Cummings Research Park Office������� 8
Cummings Research Park Map �������� 10
Retail Map . . . . . . . . . . . . . . . . . . . . . . . 12
Retail Market Overview . . . . . . . . . . . . 14
Recent Graham Activities . . . . . . . . . . 17
For Sale or Lease . . . . . . . . . . . . . . . . 20
Graham Huntsville Group . . . . . . . . . 23
2016
[ 22.4 MILLION SF TOTAL ]
OVERALL VACANCY
7.06%
SINGLE TENANT
2.27%
MULTI-TENANT22.69%
Industrial Market Overview
HUNTSVILLE INDUSTRIAL MARKET OVERVIEW
INDUSTRIAL: Vacancy for the Huntsville industrial
market fell to 7.06% in 2015, declining for the 5th
consecutive year. This marks the lowest vacancy rate
since 2008 and a 5.2% improvement since the highs
reached in 2012. Huntsville vacancy is below the
national average of 9.4%.
The national industrial market also experienced
continued growth in 2015. The national vacancy average has now dropped for twenty-three consecutive
quarters since the rate peaked at 14.6% in the 2nd
quarter of 2010. The strong dollar and rising imports
have led to expansion in the industrial market. National forecasts are predicting lower vacancy rates
and a 5.6% increase in rental rates for 2016.
The Huntsville industrial market had 497,000 sf
of absorption in 2015, continuing a four year trend
of positive absorption. Over 1.6 million sf have been
absorbed in the market since 2012. The national absorption was 238 million sf for the year. The market
has experienced twenty-three quarters of consecutive positive net growth, the longest streak in over
20 years.
New construction for industrial buildings was
a hot sector in 2015 with over 183 million sf under
construction at year-end. This tightening of available
supply led to an increase in rents of 3.7%, and rates
are expected to climb again in 2016.
The investment market for industrial product had
a record year in 2015 with over $58 billion in transactions. The demand for industrial facilities continues
to drive the value of assets up and the average cap
rates nationally are now at 6.7%.
Industrial Announcements of Note:
• Polaris announced plans to build a 600,000 sf
manufacturing facility near the Greenbrier exit that
will produce off-road vehicles and employ over 2,000
employees when fully operational. The $142 million
project broke ground in early 2015 and is expected to
be completed in 2016.
• GE Aviation announced development plans for a
$136 million at the Greenbrier Road exit in Huntsvilleannexed Limestone County. Plans call for construction
of two adjoining factories on the 100-acre site.
HUNTSVILLE
INDUSTRIAL ABSORPTION
2015 INDUSTRIAL MARKET
VACANCY RATE
INDUSTRIAL
MARKET
JETPLEX
NORTH | CENTRAL
CHASE
2015
INDUSTRIAL MARKET
T O TA L S F
VAC A N T S F
2011
SINGLE TENANT
17,17 1,07 1 SF
389,914 SF
MULTI-TENANT
5,261,612 SF
22,432,683 SF*
TOTAL INDUSTRIAL
SINGLE
TENANT
M U LT I
TENANT
OV E R A L L
1%
27.45%
9%
9.97%
5.26%
8.95%
0%
0%
0%
H U N TSV I L L E
VAC A N C Y R AT E
I N DU STR I A L A B S O R P TI O N
2012
2013
2014
2015
10.82%
9.89%
7.78%
3.36%
2.27%
1 ,1 93 , 627 SF
16.97%
17.35%
17.52%
27.22%
22.69%
1,583,541 SF
12.28%
11.62%
10.03%
8.97%
7.06%
*This number includes some industrial properties that do not fit within a certain
submarket, but are an integral part of Huntsville’s industrial landscape.
G R A H A M & C O M PA N Y
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[ 12.6 MILLION SF TOTAL ]
OVERALL VACANCY
9%
SINGLE TENANT
1%
MULTI-TENANT27.45%
Jetplex Industrial Market
Vacancy for Jetplex Industrial Park decreased to
Recent Developments:
9% in 2015, representing a better than 4% drop since
• Kohler Company purchased two adjacent buildings
on Cochran Road totaling 201,000 sf. The property
also includes 21.7 acres of land and is located across
the street from the existing Kohler plant.
2013’s rate of 13.02%. This trend should continue into
2016 as new suppliers enter the market.
Jetplex Industrial Park is Huntsville’s largest industrial base and represents 58% of the Huntsville
industrial market. Jetplex Industrial Park is comprised of several smaller markets that surround the
Huntsville International Airport and the Intermodal
Center. Jetplex Industrial Park contains 1,470 acres
and offers Foreign Trade Zone #83, U.S. Customs
Port of Entry and interstate access via I-565. Jetplex
South Industrial Park contains 1,400 acres and is
located just south of Jetplex Industrial Park. Lowe
Industrial Park is a 900-acre park originally designed
to encompass the growth of Intergraph Corporation.
• CDS-John Blue Company purchased a 63,334 sf
building at 165 Electronics Boulevard. The company
moved its main operations into the building where it
will manufacture agricultural and industrial pumps.
•Local Leaders announced a successful series of
preliminary studies to assess the feasibility of landing
Sierra Nevada Corporation’s (SNC) Dream Chaser®
spacecraft at Huntsville International Airport. The
preliminary study examined the compatibility of
SNC’s Dream Chaser® spacecraft with the existing
runway and taxiway environments.
• 124 Electronics Circle, comprised of 20,875 sf, was
purchased by Peridot Properties, LLC in November
of 2015 for $28.93 psf. The facility was built in 1989
and sits on 4.5 acres of land.
Major Area Tenants Include:
Kohler, Remington, Yulista, SES and Georgia Pacific.
KOHLER
Founded in 1873, Kohler is a leader in the kitchen
and bath industry.
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[ 4.6 MILLION SF TOTAL ]
OVERALL VACANCY
8.95%
SINGLE TENANT
9.97%
MULTI-TENANT5.26%
Vacancy for the North/Central Huntsville industrial market dropped from 11.20% in 2014 to 8.95%
in 2015. This market is comprised of just over 4.6
million sf and represents 20% of the total Huntsville
industrial market. Most buildings in this area have a
smaller footprint than buildings in Jetplex or Chase
industrial parks. Spacegate Industrial Park resides
within this market.
There are many recently constructed buildings in
this market located along the Highway 53 corridor
with good access to North Alabama and Southern
Tennessee. The tenant mix in the area consists of companies in the automobile industry, local and national
service companies and defense companies.
Recent Developments:
• 116 Spacegate Drive, a 12,000 sf building in
Spacegate, sold for $565,000 to a user. Constructed
in 2011, the property sits on .84 acres of land.
North | Central Huntsville Industrial Market
• The former Chrysler facility on Wynn Drive sold
for $1,800,000 in March of 2015 to the Sharp Companies. The 232,054 sf, 35-acre site was originally
built in 1976. Calhoun Community College recently
purchased 10 excess acres to construct an addition to
its existing campus.
• 1505 The Boardwalk, an 85,000 sf building built
in 1985, sold for $3,000,000.
• A 32,674 sf facility located at 6515 University Drive
sold for $2.8 million to Hartlex Enterprises Inc.
Hartlex Antiques moved its operations to the facility.
Major Area Tenants Include:
Toyota, Verizon Wireless, Ferguson, Graybar and
DirecTV.
• 114 Skylab Drive, an 11,385 sf facility in Spacegate,
built in 2011, situated on 2.3 acres of land sold
for $690,000 in May of 2015 to a building supply
company.
GRAYBAR
Graybar is a leading distributor of data network
solutions, electrical supplies, industrial tools,
safety products, security equipment, commercial
and industrial lighting.
G R A H A M & C O M PA N Y
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[ 5.2 MILLION SF TOTAL ]
OVERALL VACANCY
0%
SINGLE TENANT
0%
MULTI-TENANT0%
Chase Industrial Market
The vacancy rate for Chase Industrial Park was
Recent Developments:
0% in 2015, down from the previous year’s 1.29%
•A 66,000 sf industrial building at 1236 Jordan
Road was leased to Cherokee Nation Red Wing.
vacancy number. Chase represents 22% of the entire
Huntsville industrial market.
Chase Industrial Park is a 1,700-acre park located
in northeast Huntsville that was developed by the
Madison County Commission. Chase Park is comprised, almost exclusively, of single tenant employers.
Fifty acres remain available for new development.
Products manufactured in the park include medical instruments, DVD, copper plastic products and
pharmaceuticals.
Major Area Tenants Include:
J and J South Central, Qualitest Pharmaceuticals,
PPG Industries, Technicolor, Schwarze Industries,
Available Plastics, Hart & Cooley and Kommerling.
CHEROKEE NATION RED WING
CNRW provides operations and maintenance,
manufacturing, engineering, program management and professional services to a broad range
of government contractors and agencies.
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[18.7 MILLION SF TOTAL]
OVERALL VACANCY
19.31%
SINGLE TENANT
13.14%
MULTI-TENANT25.03%
Office Market Overview
HUNTSVILLE OFFICE MARKET OVERVIEW
OFFICE: Huntsville’s office market vacancy rose
again in 2015 to 19.31%, making this the 4th consecutive year of increases. The national vacancy rate
declined to 13.40%, marking the 3rd year in a row
that Huntsville’s office vacancy rate was above the
national average.
The office market had 164,000 sf of absorption
in 2015. This is the 1st positive signal the Huntsville
market has seen in a couple of years and might mark
the beginning of a slow, steady turnaround for office
product.
Huntsville office vacancies in Cummings Research Park (CRP) have been negatively affected by
a slowdown in defense spending and the downsizing of office space needs for government contractors.
Overall vacancy in CRP increased to 15.04%, while
multi-tenant vacancy in CRP rose to 24.24%.
Over 65 million sf of office buildings were built
nationally last year, but it appears construction for new
office space will soften some in 2016. New construction
in the Huntsville office market was once again slow in
the CRP market but is active in the CBD with several
mixed-use projects underway.
Average rental rates in Huntsville remain fairly
steady in the Class-A and Class-B inventory with
annual increases averaging in the 2.5% to 3% range.
Rent concessions are still being offered to help fill the
existing vacant space.
Office Announcements of Note:
• The City of Huntsville and the Huntsville/Madison
County Chamber of Commerce announced plans to
develop a new master plan for Cummings Research
Park. CRP has seen a substantial rise in vacancy
rates, specifically in older Class-C inventory. The
new plan will allow for different zoning in various
parts of CRP.
• Torch Technologies, Inc. began renovation of two
existing office buildings in South Huntsville. The
$10 million plan will allow for the renovation, as
well as the construction of a new corporate headquarters and large conference center.
HUNTSVILLE
OFFICE ABSORPTION
2015 OFFICE MARKET
VACANCY RATE
OFFICE
MARKET
SINGLE
TENANT
M U LT I TENANT
OV E R A L L
9.12%
24.24%
15.04%
JETPLEX/
MADISON
56.82%
39.16%
44.23%
CENTRAL
BUSINESS DISTRICT
12.86%
17.98%
17.46%
CUMMINGS
RESEARCH PARK
T O TA L S F
VAC A N T S F
2011
VAC A N C Y R AT E
2012
2013
2014
2015
SINGLE TENANT
8,878,497 SF
1,166,607 SF
3.54%
4.81%
5.09%
10.79%
13.14%
MULTI-TENANT
9,840,977 SF
2,463, 289 SF
13.84%
20.02%
25.64%
24.83%
25.03%
TOTAL OFFICE
18,719,474 SF
3,629,896 SF
8.71%
12.55%
15.47%
18.02%
19.31%
2015
OFFICE MARKET
G R A H A M & C O M PA N Y
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5
[ 3.4 MILLION SF TOTAL ]
OVERALL VACANCY
17.46%
SINGLE TENANT
12.86%
MULTI-TENANT17.98%
Central Business District (CBD) Office Market
The Huntsville Central Business District (CBD)
Recent Developments:
consists of approximately three million sf and is
• Huntsville Hospital purchased a Class-C, 8,372 sf
medical office building on Saint Clair Avenue. The
building was built in 1960 and will be razed to make
room for hospital expansion needs.
dominated by the business services sector including
law firms, banking, accounting and real estate
companies. City, county and government employees
also call the downtown Central Business District
(CBD) home.
Vacancy in the CBD market decreased slightly
to 17.46% in 2015, down from 2014’s rate of 18.38%.
Multiple mixed-use projects are under construction
that will increase inventory of Class-A office space in
the market. With vacancy in Class-A product low at
11.75%, new space should be absorbed quickly.
• The Broadway Group purchased the PNC Bank
building located in the medical district at 2204
Whitesburg Drive. The 22,131 sf multi-tenant facility
was originally constructed in 1979.
• Maynard Cooper & Gale expanded its office footprint in downtown Huntsville by leasing the 2nd
floor of a newly constructed office building on
Fountain Row. The two buildings are connected by
an elevated walkway.
Major Area Tenants Include:
Huntsville Hospital, Lanier Ford, Regions Bank,
BB&T, The City of Huntsville, Bradley Arant Boult
& Cummings.
TWICKENHAM SQUARE
Twickenham Square features a 5-story,
110,000 sf medical office building that connects
to Huntsville Hospital.
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HUNTSVILLE
[ 2.5 MILLION SF TOTAL ]
OVERALL VACANCY
44.23%
SINGLE TENANT
56.82%
MULTI-TENANT39.16%
Jetplex | Madison Office Market
Vacancy for the Jetplex/Madison office market increased
slightly in 2015 to 44.23%. This marks a substantial increase
over the 12.3% rate in 2012. The two largest office users in
the market, Boeing and Intergraph, have both consolidated
office space recently. Boeing leased 330,000 sf at the Redstone
Gateway facility in 2013 that pulled some employees out of the
Jetplex market.
Madison is one of the fastest growing cities in Alabama and
the demand for medical and business services has remained
strong. Many bank branches and medical related facilities
have been built in the Madison market in the last three years.
Both Huntsville Hospital and Crestwood now have a presence
in Madison.
New Developments:
• The Breland Companies’ partial purchase of Intergraph’s
should lead to the demolition of 660,000 sf of the
older, Class-C office product that was carrying high vacancies.
This would have an immediate positive impact on the area’s
vacancy rates.
campus
• Two new tenants leased space in Madison Research Park,
totaling over 40,000 sf. Located just north of Highway 20, the
park has over 180,000 sf of office space.
Major Area Tenants Include:
Intergraph, Boeing, Madison Hospital, Progress Bank and
Platinum Mortgage.
MADISON MEDICAL I
Madison Medical I is a Class-A, 3-story,
60,000 sf medical office building in close
proximity to Madison Hospital.
G R A H A M & C O M PA N Y
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7
[ 12.8 MILLION SF TOTAL ]
OVERALL VACANCY
15.04%
SINGLE TENANT
9.12%
MULTI-TENANT24.24%
Cummings Research Park Office Market
Office vacancy in Cummings Research Park (CRP)
rose to 15.04% in 2015, a sizeable increase over
2012’s vacancy rate of 8.94%. Multi-tenant vacancy
was 24.24%.
Most increases in office vacancy have been located in older, Class-C product. The overall vacancy
for Class-C office space was 34.52% versus Class-A
overall vacancy of 3.50%.
The vacancy rate for Class-A multi-tenant space
was 3.09%, while Class-C multi-tenant space was
39.17%. This wide variation in rates by office class
has prompted discussions on ways to improve the
overall product offered in CRP. A Cummings Research Park Master Plan team, working closely
with the City of Huntsville, has been developing a
new master plan to benefit CRP. The plan calls for
changing the allowed uses in certain zones within
the park. This will aid in decreasing the vacancy rate
and increasing the amount of mixed-use product.
Most companies in CRP have acted in a support
role to meet the various demands for the military installations located on Redstone Arsenal. CRP is the
largest office market in Huntsville and represents
over 70% of the total Huntsville office market. Cummings Research Park is the 2nd largest research park
in the United States.
H UDSON A LPHA INSTITUTE
Under the leadership of Richard Myers, PhD,
HudsonAlpha connects four endeavors - research
driven discovery, education, genomic medicine
and entrepreneurship - into a single enterprise making it one of the most unique areas for
genomic discovery in the country.
L OGI C ORE
LogiCore delivers comprehensive systems and
software engineering services, system design
and development, information technology
solutions, program support services and life
cycle logistics services to its clients.
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Cummings Research Park Office Market
Recent Developments:
• GATR Technologies was purchased by Cubic Corporation for $232.5 million. The transaction should
close in 2016. GATR manufactures next-generation
satellite communication terminal solutions.
• Lockheed Martin purchased a 166,947 sf Class-A
building at 4800 Bradford Drive. The building sold
for $140 psf. Lockheed Martin is the only tenant in
the building.
• DynCorp moved its new headquarters into the
Class-A building at 310 Bridge Street, leasing over
17,000 sf. The company was started in Huntsville in
2007.
• Verizon Wireless announced that it will be
hiring 200 new employees for its call center located
on Quality Circle. The $44 million call center is
Verizon’s state headquarters.
DYN C ORP
The DynCorp International team combines
extensive real-world experience with resourceful,
innovative planning to support mobilization,
operational readiness, sustainment and
development worldwide.
• According to a study by University of Alabama in
Huntsville, the HudsonAlpha Institute has had an
economic impact on Alabama of $1.3 billion since its
inception in 2006. The study also stated that HudsonAlpha has generated 1,177 jobs. Total payroll for
the center was $66 million in 2014.
• US Diagnostics of Huntsville was purchased for
$60 million by Alere. USD makes devices for use in
pre-employment drug and alcohol screening. The
company is located in the Village of Providence.
Major Area Tenants Include:
DYNETICS
Dynetics provides superior-quality high-tech
products and services ethically, responsively, and
cost-effectively to the national security, satellite,
launch, automotive, cybersecurity and critical
infrastructure sectors.
ADTRAN, Northrop Grumman, Lockheed Martin,
SAIC, BAE Systems, Dynetics, Camber Corporation,
Aegis Technologies, LogiCore and numerous other
high-tech companies.
G R A H A M & C O M PA N Y
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HUNTSVILLE
9
Center of Attention...
HUNTSVILLE, ALABAMA
C U M M I N G S R E S E A R C H PA R K
CRP WEST
CRP EAST
One of Forbes Leading Cities for Business...
HUNTSVILLE, ALABAMA
M A J O R R E TA I L S T O R E S
[13.6 MILLION SF TOTAL]
Retail Market Overview
OVERALL VACANCY
12.01%
HUNTSVILLE RETAIL MARKET OVERVIEW
RETAIL: The Huntsville retail market performed
retail markets. Jones Valley/Hampton Cove was the
only market with an increase rising .55% to 3.55%.
New development will continue in this market as the
vacancy is low and buying power remains high.
The Highway 72/Madison market has a vacancy
rate of 6.13% and continues to expand west through
Madison and towards the County Line Road and
Athens, Alabama areas.
Vacancy in Huntsville’s largest submarket, University West, decreased to 18.74%. Two large strip
centers in this submarket were purchased in 2015,
and the new owners are aggressively seeking to redevelop and release these centers. The redevelopment
of Madison Square Mall should, once completed,
have an immediate impact on the high vacancy rates
in this market.
The North Huntsville/Harvest market, helped
in large part by the backfilling of the former Kmart
space by At Home, decreased to 18.49%. New construction remains light in this market.
South Huntsville vacancy dropped to 10.02% and
should continue to improve once the construction
project on South Parkway is completed, which is
slated for 2018.
well in 2015 with vacancy declining to 12.01% from
the previous year’s rate of 12.92%. Older enclosed
malls and large retail box centers accounted for most
of Huntsville’s vacancy.
Rents rose again in 2015 on the national level, and
Huntsville has seen rates of $30± psf in newer centers. Many retailers have been developing plans to
downsize brick-and-mortar space in an effort to reduce overall rental cost and increase sales psf.
New construction continues to remain active
in the Huntsville market. Two large mixed-use developments are under construction in downtown
Huntsville, and Providence is expanding its footprint
as well. New retail continues to be added along the
Highway 72 corridor in Madison. Vacancies remain
low in the Jones Valley/Hampton Cove market and
several new projects are expected to be announced
in 2016.
Huntsville recorded positive absorption again in
2015 with a net gain of 224,000 sf. Over 670,000 sf
of retail space having been absorbed in the market in
the last two years.
Vacancy rates dropped in four of Huntsville’s five
2015
14
VAC A N C Y R AT E
2013
2014
R E TA I L M A R K E T
T O TA L S F
VAC A N T S F
2012
UNIVERSITY WEST
4,087,149 SF
765,809 SF
14.83%
16.57%
19.86%
18.74%
HIGHWAY 72/MADISON
2,780,223 SF
170,546 SF
6.74%
5.92%
7.32%
6.13%
JONES VALLEY/HAMPTON COVE
2,092,677 SF
70,100 SF
2.53%
2.80%
3.0%
3.55%
SOUTH HUNTSVILLE
2,702,164 SF
270,677 SF
6.75%
7.55%
10.70%
10.02%
NORTH HUNTSVILLE/HARVEST
1,902,200 SF
351,778 SF
10.06%
14.62%
19.01%
18.49%
TOTAL RETAIL
13,564,413 SF
1,628,910 SF
9.05%
10.27%
12.92%
12.01%
G R A H A M & C O M PA N Y
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HUNTSVILLE
2015
Retail Market Overview
2015 Activity:
The $400 million Town Madison mixed-use project grew by 200 acres with the purchase of a portion
of the Intergraph campus. Breland Companies purchased the property and will give the project more
than two miles of frontage along interstate I-565.
•
• Cabela’s grand opening was held in September of
2015 for thousands of new customers. The 82,000 sf
store features a boat shop, aquarium, indoor archery
range, gun library and a fudge shop.
CABELA’S
Cabela’s opened its first store in Alabama, an
80,000 sf retail showroom serving outdoor
enthusiasts in northern Alabama and southern
Tennessee.
The Westbury Square Shopping Center on Airport Road sold for $23.4 million by Inland Real Estate. The 115,000 sf center is fully leased and includes
T.J. Maxx, SteinMart and Michaels.
•
The struggling Madison Square Mall sold to an investor and will be completely redeveloped.
•
CAMPUS N0. 805
Campus No. 805, the former Stone Middle School
redevelopment, is a 13-acre mixed-use project
including two craft breweries, a public
recreational lawn and special event venues.
RETAIL OCCUPANCY BY TYPE
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Retail Market Overview
Announcements of Note:
announced plans to open
a new store at Bridge Street Town Centre, backfilling
the 47,000 sf space vacated by Sports Authority.
• Dick’s Sporting Goods
• Yellowhammer Brewing, Straight to Ale and
were announced as the first tenants for Campus No. 805.
Earth and Stone
The former Star Market building on Bailey Cove
Road will soon be home to a Walmart Neighborhood Market. Walmart spokeswoman, Amanda
•
TOTAL RETAIL SF BY MARKET
• A new 92-room Hampton Inn & Suites will be
built in the Providence development. The 4-story
hotel will also include a new 2,000 sf Taco Mama
restaurant. The project is expected to be completed
by the 3rd quarter of 2016.
TOTAL RETAIL SF BY TYPE
RETAIL VACANCY RATE BY TYPE
TYPE
Henneberg, confirmed that the retail giant plans to
build a 40,000 sf store at 9020 Bailey Cove Road SE.
It will be the first development at the property since
Star Market closed in October 2014.
HUNTSVILLE RETAIL
ABSORPTION
VAC A N C Y R AT E
NEIGHBORHOOD
10.19%
NEIGHBORHOOD/ANCHORED
10.39%
POWER CENTER
7.72%
ENCLOSED MALL
24.49%
LARGE BOX
13.13%
TOTAL
12.01%
2015
HUNTSVI
AB SO
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HUNTSVILLE
Recent Graham Activities
LEASED
301 VOYAGER WAY
LEASED
310 THE BRIDGE STREET
110,275 SF – 301 Voyager Way
Huntsville, AL
Graham represented Northrop Grumman in its
lease of office space in Cummings Research Park.
10,280 SF – 310 The Bridge Street
Huntsville, AL
Graham represented Aerotek/Teksystems in leasing
space at Bridge Street.
Agent: Bart Smith, CCIM, SIOR
Agents: Bart Smith, CCIM, SIOR & Tyler Fanning
LEASED
100 QUALITY CIRCLE
52,523 SF – 100 Quality Circle
Huntsville, AL
Graham represented Wyle in its lease of office space.
Agent: Tyler Fanning
SOLD
3610 MERIDIAN STREET
58,000 SF – 3610 Meridian Street
Huntsville, AL
Graham represented the owner in the disposition
of this industrial building.
Agent: Jeremy Pope, CCIM, SIOR
LEASED
JETPLEX CENTER
LEASED
TWICKENHAM SQUARE
5,014 SF – Jetplex Center
Huntsville, AL
Graham represented both landlord and tenant in
Southern Siding’s lease of space at Jetplex Center.
1,299 SF – Twickenham Square
Huntsville, AL
Graham represented 9Round Fitness in its lease for
its first Huntsville location.
Agents: Jeremy Pope, CCIM, SIOR & Chris Jackson
Agent: Jeremy Pope, CCIM, SIOR
G R A H A M & C O M PA N Y
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17
Recent Graham Activities
LEASED
LEASED
1021 PRODUCTION COURT
1038 RESEARCH BOULEVARD
33,000 SF – 1021 Production Court
Madison, AL
Graham represented DRS in its lease of
office/warehouse space.
20,000 SF – 1038 Research Boulevard
Madison, AL
Graham represented Huntsville Hospital in its lease
of office space at Madison Research Park West.
Agent: Tyler Fanning
Agent: Jeremy Pope, CCIM, SIOR
SOLD
LEASED
10019 MEMORIAL PARKWAY
6767 OLD MADISON PIKE
16,055 SF – 6767 Old Madison Pike
Huntsville, AL
Graham represented Booz Allen Hamilton in its
lease of office space at Progress Center.
0.75 Acre – 10019 Memorial Parkway
Huntsville, AL
Graham represented the buyer in the disposition of
this land parcel to the Dairy Queen franchisee.
Agents: Bart Smith, CCIM, SIOR & Tyler Fanning
Agent: Jeremy Pope, CCIM, SIOR
LEASED
SOLD
893 COX CREEK PARKWAY
7219 GREENBRIER ROAD
2,430 SF – 893 Cox Creek Parkway
Florence, AL
Graham represented the owner in the disposition
of this former car wash facility.
5,000 SF – 7219 Greenbrier Road
Madison, AL
Graham represented the owner in leasing this
office/warehouse space to AIT.
Agent: Tyler Fanning
Agent: Jeremy Pope, CCIM, SIOR
reduced to 48%
18
G R A H A M & C O M PA N Y
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2016 MARKET SURVEY
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HUNTSVILLE
Recent Graham Activities
LEASED
420 JAN DAVIS DRIVE
LEASED
7272 GOVERNORS WEST
30,000 SF – 420 Jan Davis Drive
Huntsville, AL
Graham represented Rockwell Collins in its lease of
office space in Cummings Research Park.
44,000 SF – 7272 Governors West
Huntsville, AL
Graham represented Dynetics in its lease of
industrial space.
Agent: Bart Smith, CCIM, SIOR
Agent: Bart Smith, CCIM, SIOR
LEASED
2775 WALL TRIANA HIGHWAY
SOLD
14210 & 14212 COCHRAN ROAD
27,600 SF – 2775 Wall Triana Highway
Huntsville, AL
Graham represented HDT Expeditionary Systems in its
lease of office/warehouse space in the Jetplex area.
201,000 SF – 14210 & 14212 Cochran Road
Huntsville, AL
Graham represented the owner in the disposition
of these industrial buildings to Kohler.
Agent: Jeremy Pope, CCIM, SIOR
Agents: Graham & Co Huntsville Group, Team Deal
SOLD
SOLD
251 CHATEAU DRIVE
10,596 SF –251 Chateau Drive
Huntsville, AL
Graham represented State Farm in the disposition of
this office building to an investor group.
Agent: Tyler Fanning
1124 HIGHWAY 72
3,200 SF – 1124 Highway 72
Athens, AL
Graham represented the buyer in purchasing this
former restaurant building that will be converted
to a medical office facility.
Agent: Tyler Fanning
G R A H A M & C O M PA N Y
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19
For Sale or Lease
1020 WINCHESTER ROAD
HUNTSVILLE, AL
AVAILABLE FOR SALE: 12,100 SF
• Manufacturing facility within one mile of Chase Industrial Park
• 100% heated and cooled
• Fenced-in yard area
Contacts: Bart Smith, CCIM, SIOR
Chris Jackson
[email protected]@grahamcompany.com
1020 WINCHESTER ROAD
29850 JONES AVENUE
ARDMORE, AL
AVAILABLE FOR SALE: 45,100 SF
• Industrial facility situated on 8.5 acres
• Close proximity to Interstate 65 at the
Alabama/Tennessee border
Contact: Jeremy Pope, CCIM, SIOR
[email protected]
29850 JONES AVENUE
QUALITY CIRCLE
355 QUALITY CIRCLE, HUNTSVILLE, AL
AVAILABLE FOR LEASE: Up to 45,715 SF
• LEED Certified flex space in Thornton Research Park
• Dock high loading
Contacts: Jeremy Pope, CCIM, SIOR
Tyler Fanning
[email protected]@grahamcompany.com
QUALITY CIRCLE
2914 GREEN COVE ROAD
HUNTSVILLE, AL
AVAILABLE FOR SALE: 85,000 SF
• Fully heated and air-conditioned
• Situated on 7.73 acres
• Excellent accessibility to South Memorial Parkway
Contact: Bart Smith, CCIM, SIOR
[email protected]
2914 GREEN COVE ROAD
WILL MCCOMB DRIVE
MOORESVILLE, AL
AVAILABLE FOR SALE: 50 ± Acres
• Located within Huntsville City Limits
• Less than four miles from Polaris and the recently announced GE Aviation site
Contact: Tyler Fanning
[email protected]
WILL MCCOMB DRIVE
20
G R A H A M & C O M PA N Y
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reduced to 40%
|
HUNTSVILLE
For Sale or Lease
MAIN STREET SOUTH
7500 SOUTH MEMORIAL PARKWAY, HUNTSVILLE, AL
AVAILABLE FOR LEASE: Up to 10,000 SF
• Unique office/retail opportunity in South Huntsville
• Center offers high visibility, convenient ingress/egress, and monument
signage opportunities
Contacts: Bart Smith, CCIM, SIOR
Tyler Fanning
[email protected]@grahamcompany.com
MAIN STREET SOUTH
481 FIRE TOWER ROAD
GRANT, AL
AVAILABLE FOR SALE: 82,500 SF
• 100% conditioned industrial facility situated on 20 acres
Contact: Jeremy Pope, CCIM, SIOR
[email protected]
481 FIRE TOWER ROAD
2001 NICHOLS DRIVE
HUNTSVILLE, AL
AVAILABLE FOR LEASE: Up to 12,500 Contiguous SF
• Convenient access to Redstone Arsenal Gate 1 via Martin Road
• 1st floor and 2nd floor space available
Contacts: Bart Smith, CCIM, SIOR
Tyler Fanning
[email protected]@grahamcompany.com
2001 NICHOLS DRIVE
1000 JAMES RECORD ROAD
HUNTSVILLE, AL
AVAILABLE FOR LEASE: 254,479 SF
• Industrial facility in Jetplex Industrial Park
• Located one mile from International Intermodal Center
• Norfolk Southern rail spur
Contact: Jeremy Pope, CCIM, SIOR
[email protected]
1000 JAMES RECORD ROAD
4100 REDSTONE GATEWAY
HUNTSVILLE, AL
AVAILABLE FOR LEASE: 5,000 – 36,000 SF
• LEED Certified office in master-planned park
• Located just outside the main entrance to Redstone Arsenal
Contacts: Bart Smith, CCIM, SIOR
4100 REDSTONE GATEWAY
Jeremy Pope, CCIM, SIOR
[email protected]@grahamcompany.com
Tyler Fanning
[email protected]
G R A H A M & C O M PA N Y
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21
For Sale or Lease
802 SHONEY DRIVE
HUNTSVILLE, AL
AVAILABLE FOR SALE: Call for Pricing
• Property is 85% occupied
• Beautifully landscaped, highly affluent growth area
Contacts: Walter Brown, SIOR
Tyler Fanning
[email protected]
[email protected]
802 SHONEY DRIVE
312 CLINTON AVENUE
HUNTSVILLE, AL
AVAILABLE FOR LEASE: 8,183 SF
• 2nd floor office space in the Central Business District
• Cadence Bank will remain as a tenant on the 1st floor
Contact: Tyler Fanning
[email protected]
312 CLINTON AVENUE
450 LANIER ROAD
MADISON, AL
AVAILABLE FOR SALE: 26,315 SF
•Medical office facility situated on 5.84 acres
• 1-story building with covered entrances for patient drop off
450 LANIER ROAD
Contacts: Bart Smith, CCIM, SIOR
Jeremy Pope, CCIM, SIOR
[email protected]
[email protected]
PHYSICIANS’ PLAZA
4810 WHITESPORT CIRCLE, HUNTSVILLE, AL
AVAILABLE FOR LEASE: Up to 4,345 SF
• Medical office facility on the campus of Crestwood
Medical Center
• Patient, employee and physician parking
Contact: Tyler Fanning
[email protected]
PHYSICIANS’
PHYSICIANS’PLAZA
PLAZA
HIGHWAY 72 & BALCH ROAD
MADISON, AL
AVAILABLE FOR SALE: 6 Acres
• Located in high growth area just west of Madison Hospital
• Ideal location for retail development or restaurant
Contacts: Bart Smith, CCIM, SIOR
Tyler Fanning
[email protected]
[email protected]
HIGHWAY 72 & BALCH ROAD
22
G R A H A M & C O M PA N Y
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2016 MARKET SURVEY
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HUNTSVILLE
Graham Huntsville Group
BA RT SMITH,
J E R E MY P O P E ,
CCI M, SI OR
CC IM, S IOR
MA N AG IN G B R O K E R
S E NIOR V IC E P RE S IDE NT
[email protected]
[email protected]
2002
J O IN E D G R A HA M & COMPANY:
2000
JOINE D GRAH AM & COMPANY:
AF F ILIATIO N S/HO NORS:
AF F IL IAT IONS /H ONORS :
•Certified Commercial Investment
Member (CCIM) designation
•Certified Commercial Investment
Member (CCIM) designation
•Society of Industrial & Office
Realtors (SIOR) designation
•Society of Industrial & Office
Realtors (SIOR) designation
•North Alabama Commercial (NALCOM), Past President
•Member NAIOP – AL Chapter
•Alabama Commercial Real Estate Center (ACRE),
Leadership Council
•Huntsville/Madison County Convention & Visitors Bureau, Board Member
• Alabama CCIM Chapter, Board Member
•Huntsville Rotary Club, Strive Mentor
•Huntsville & Madison County Railroad Authority,
Board Member
•Salvation Army – Advisory Board
C L IE NTS INC LU DE :
•First Methodist Church – Leadership Team
•
•
•
•
C LIE N TS IN C LUDE :
•
•
•
•
Sanmina-SCI • Northrop Grumman • Cisco • COPT
Stanley Corporation • Wells Fargo Securities • DirecTV
ATK • MITRE • Dynetics • AEGON • Orbital Sciences
Booz Allen Hamilton • MetLife • Rockwell Collins
Tyco • Owens Corning • Intergraph • Huntsville Hospital
Kuehne & Nagel • Harris Corporation • Siemens
Willbrook Solutions • Wolseley • Ferguson • Continental
International Truck & Engine • Synapse Wireless
C H R I S JAC KS O N
ASS OC IAT E
[email protected]
T Y LER FANNING
JOINE D GRAH AM & COMPANY:
V IC E P R E SIDE N T
[email protected]
J O IN E D G R A HA M & COMPANY:
2007
AF F ILIATIO N S/HO NORS:
•CCIM Candidate (Certified
Commercial Investment Member)
2015
AF F IL IAT IONS /H ONORS :
•Member NAIOP – AL Chapter
•Downtown Huntsville, Inc.,
Events Council
•Acme Club of Huntsville, Member
•Huntsville Rotaract Club,
Member
•CCIM Candidate (Certified
Commercial Investment Member)
• Huntsville Committee of 100 Young Professionals
Initiative, Member
•Chamber of Commerce of Huntsville/Madison County, Emissary
•Huntsville High School Wrestling Coach
C L IE NTS INC LU DE :
C LIE N TS IN C LUDE :
• GCP Properties • Southern Siding and Window
• MITRE • Prometric • PNC Bank • Aerospace Corporation
• Stephen Gould Corporation • Wells Fargo Securities
• Southern Research • DRS • LYBD Engineering
E R I KA H A R L E SS
RE AL E STAT E ASS ISTANT
[email protected]
G R A H A M & C O M PA N Y
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23
Corporate Services
A B O U T G R A HA M & CO M PA N Y
Founded in 1978, Graham & Company is a full-service commercial real estate firm based in Birmingham. With
offices in Birmingham and Huntsville, Alabama and Jacksonville and the Gulf Coast, the company offers
professional services including sales, leasing, property management (GCP), appraisal, consulting, investment
and development. In response to client demand, Graham has systematically extended its range of services and
geographic reach, now serving clients throughout Alabama and several surrounding states.
C O M M U N I T Y I N V O LV E M E N T
Part of making our community a better place to live and work is an important tenet of Graham & Company. Our
brokers and agents are active with local organizations such as the Salvation Army, Boys & Girls Clubs, Habitat
for Humanity, volunteer coaching, church leadership and land conservation organizations. These good causes
reflect a diversity among our associates in the Huntsville office, and our collective commitment to making
Huntsville a place we are proud to call home.
A F F I L I AT I O N S
NAIOP–Commercial Real Estate Development Association
SIOR–Society of Industrial & Office Realtors
CCIM–Certified Commercial Investment Member
BOMA–Building Owners and Managers Association
CRE–Counselors of Real Estate
IREM–Institute of Real Estate Management
ICSC–International Council of Shopping Centers
LEED–Leadership in Energy and Environmental Design
Appraisal Institute
INDIVIDUAL
MEMBERSHIPS
INDIVIDUAL MEMBERSHIPS
24
G R A H A M & C O M PA N Y
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2016 MARKET SURVEY
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HUNTSVILLE
g ra h a mco mp a ny.com
MEASURE US BY OUR ACTIONS
GRAHAM & COMPANY PERSONNEL - Huntsville, Alabama
CORPORATE
Steve Graham, Chairman
Mike Graham, President
OFFICE & INDUSTRIAL
Tyler Fanning
Chris Jackson
Jeremy Pope, CCIM, SIOR
| BIRMINGHAM
| HUNTSVILLE
MANAGING BROKER
Bart Smith, CCIM, SIOR
REAL ESTATE ASSISTANT
Erika Harless
| JAC KS O N V I L L E
| G U L F COAST
110 Office Park Drive
Suite 200
Birmingham, AL 35223
355 Quality Circle
Suite E
Huntsville, AL 35806
550 Water Street
Suite 1225
Jacksonville, FL 32202
100 Richard Jackson Blvd.
Suite 115
Panama City Beach, FL 32407
TEL 205.871.7100
TEL 256.382.9010
TEL 904.281.0003
TEL 850.563.1500
FAX 205.871.3331
FAX 256.382.9011
FAX 904.281.0849
FAX 850.563.1504
Cover: Polaris Industries
7049 Greenbrier Parkway NW, Madison, AL
SellersPhoto Aerial Photography © sellersphoto.com
Copyright © 2016
Reproduction, in whole or part, of this report is prohibited.
Information deemed reliable, but not guaranteed.
Dynetics image used by permission of Dynetics.
HudsonAlpha Institute image used by permission
of HudsonAlpha Institute for Biotechnology.
Special thanks to Hiroko Sedensky and the Chamber of Commerce of
Huntsville/Madison County for providing the Cummings Research Park
map and the Major Retail Stores map, pages 10-13.
MEASURE US BY OUR ACTIONS
355 Quality Circle, Suite E
Huntsville, AL 35806
TEL 256.382.9010
grahamcompany.com
BIRMINGHAM
HUNTSVILLE
JACKSONVILLE
GULF COAST

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