(To read more on the industrial market and the net lease market click here.)
(Natalie Keith is a contributing writer to GlobeSt.com.)
TROY, MI-Two new industrial leases have been signed, giving hope to the Detroit-area industrial market. Honeywell International signed a 45,800-sf lease at 900 W. Maple Rd., which is owned by Sala Partners LLC. Nearby, Drivesol Worldwide signed a 16,708-sf lease at 1104 W. Maple Rd., which is owned by JBD Troy LLC.
Cameron McCausland, of Colliers International, who represented Honeywell, tells GlobeSt.com that there has been a steady level of activity in the industrial market in the area, and "a lot of it has been in short-term lease transactions," McCausland says.
McCausland says the Honeywell lease was a renewal, but could not provide further details regarding the transaction. Peter E. Kepic and Peter J. Kepic, of Colliers International, represented the landlord in the Drivesol Worldwide lease. Further details regarding the transaction were not available.
According to a market report issued by Colliers International in the fourth quarter 2005, Troy experienced 51,831 sf in net absorption of warehouse/distribution space and 30,310 sf in flex space during the quarter. For the year, Troy had 467,713 sf in net absorption of warehouse/distribution space and 47,868 sf in flex space. Average rents in Troy were $5.58 per sf for warehouse/distribution space and $8.46 per sf for flex space. The vacancy rate in Troy at the end of the year was 9.4% for warehouse/distribution space and 20.6% for flex space.
In addition to leasing activity, the market has seen more sales activity, says McCausland. "There are good opportunities for companies to buy their properties instead of leasing them," he tells GlobeSt.com. "In the past, there haven't been a lot of properties for sale."
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
