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Hartford Hartford Office and Industrial Markets Connecticut Commercial Real Estate Conference March 6, 2012 BARTRAM & COCHRAN
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Hartford. Hartford Office and Industrial Markets Connecticut Commercial Real Estate Conference March 6, 2012. National Industrial Trends. National Industrial Vacancy. National Industrial Rents. Hartford Industrial Market. 89,000,000 – 97,000,000 SF Market - PowerPoint PPT Presentation
Transcript of Hartford
Hartford
Hartford Office and Industrial Markets
Connecticut Commercial Real Estate Conference
March 6, 2012
BARTRAM & COCHRAN
National Industrial Trends
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National Industrial Vacancy
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National Industrial Rents
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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
City 6%
North34%
West19%
South16%
East25%
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Industrial – Major LeasesTenant Address Location SF
Coca Cola Company 555 Taylor Road Enfield 278,207
Fostick Corporation 129 Worthington Berlin 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 RenewalsTenant 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 16,320BARTRAM & COCHRAN
Top Industrial SalesBuilding 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 $50
BARTRAM & COCHRAN
National Office Trends
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National Office CBD Vacancy
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National Office Class A Asking Rates
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Hartford Office Market
• 25,000,000 SF multi-tenant building market
• Slowly improving activity – going from an average loss of 1,900,000 SF a year for three years to projected (depending on those interviewed) sharply slower losses to positive absorption
• No major new-to-market leases
• Market cycle: last phase of the recession, poised for recovery
• Stabilized market 7-8 years for CBD, 5 years for suburbs
• Going in cap rate 9.5% (CBD), 8.75% (suburban)
BARTRAM & COCHRAN
Hartford Office 4Q11
Market Rentable (SF) Vacancy Rate (%)
Sublease Rate (%)
2Q11 YTD Leasing
Average Asking Rate ($/ SF/ YR)
CBD 8,000,000 28% 0.70% -85,000 $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 SF % VacancyMulti-tenant 25,670,000 22%Owner occupied 12,500,000 ?Total 38,170,000
BARTRAM & COCHRAN
2011 Major Office LeasesTenant 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 24,647Ct Children's Med. Center 60 Hartland
East Hartford 40,812
American Express242 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 17,684Corporate Translations
77 Hartland Street
East Hartford 17,330
Dechert90 State House Sq. Hartford 15,544
BARTRAM & COCHRAN
Office SalesAddress City SF Price $ / SF
90-100 Avon Meadow Avon 20,000 $900,000 $451577 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 $13399 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
AcademicTenant Address City Type SF
CCMC 300 John Downey Dr.
New Britain
New Lease 48,000
CREC U of H Asylum Avenue Campus
Hartford Renewal & Expansion
26,208
St Joseph's College
229 Trumbull St Hartford Expansion 10,000
BARTRAM & COCHRAN
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
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Jackson Lab
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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, SIORBARTRAM & COCHRAN64 Pratt StreetHartford, CT 06103
860 549-5000 x [email protected]
BARTRAM & COCHRAN
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