Grubb & Ellis Co., putting out its first quarter report yesterday, says the northwest far submarket led the pack with an absorption of 742,823 sf in an inventory of 67.7 million sf. "This is a good sign," Robert Kramp, Grubb & Ellis' regional manager of client services for the southern US, tells GlobeSt.com, "The northwest far submarket has been soft for the past several years because of an aggressive construction pipeline."
The submarket's largest deal for the quarter was struck by Iron Mountain Inc. of Boston, which bought a 208,117-sf industrial building at 15333 Hempstead Highway from the Netherlands-based Van Leeuwen Pipe & Tube Group.
The northwest near submarket, with 36.3 million sf, came in second place with an absorption of 86,792 sf while the east southeast far corridor accounted for 86,660 sf in the 14.3-million-sf inventory.
Kramp says there is roughly 33 million sf of vacant space in the city. Again, the northwest far submarket led the region, shaving a full percentage point from its total to end the quarter with a 10.2% vacancy. "A good portion of this space is in facilities that are rather dated," he says, adding the lower-end stock would have to be renovated, demolished or enlarged to compete with newer product.
The Grubb & Ellis research team says annual triple net asking rates rose across the board. Standard industrial rents grew two cents per sf to end the quarter with an average of $3.14 per sf. Warehouse distribution space rose 15 cents per sf to $3.87 per sf and research and development and flex product jumped 26 cents to $6.98 per sf average.
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