Connecticut industrial real estate market
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Connecticut Industrial Real Estate Market. “A View From the Street”. What is “A View From the Street”?. No Vacancy Rates. No “the size of the market” info. Not a statistical review. If you need those…give me a call. We are a spoiled bunch!.

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Connecticut Industrial Real Estate Market

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Connecticut Industrial Real Estate Market

“A View From the Street”


What is “A View From the Street”?

  • No Vacancy Rates.

  • No “the size of the market” info.

  • Not a statistical review.

  • If you need those…give me a call.


We are a spoiled bunch!

  • Would we have even thought of numerous 100,000-200,000 sf deals 3-4 years ago??!!??

  • Would we have even thought of $100 million industrial deals 3-4 years ago??..How about 2 years ago???…How about REITS in our market???


Things are good!!!!

So then why is everyone so worried?!?


Where are we today?

Activity Continues!!!


Big “USER” Deals Continue.

  • New Breed – North Haven – 520,000 sf

  • RBC Bearings – Torrington – 130,000 sf

  • C&S Wholesalers - E. Windsor – 277,000 sf

  • Travelers Insurance – Windsor - 137,000 sf


New Breed – North Haven


Big “USER” Deals (con)….

  • Federated Department Stores – Cheshire – 258,000 sf.

  • Indeco – Milford – 88,000 sf.

  • Visual Controls – Milford – 146,000 sf.


Big “INVESTMENT” Deals Continue.

Cash Flow AND Vacant


Cash Flow…

  • HRPT purchases the “Winstanley Portfolio”…

  • Hampshire Group purchases US Steel package in Meriden – 560,000 sf.

  • Block & Kahn purchases 141 South Street, West Hartford – 113,000 sf.

  • Preferred purchases (and is ready to sell) Cheshire & North Haven facilities…


Preferred–Cheshire & N Haven


Cash Flow (con)…

  • Benerofe Properties - 25 Research Parkway, Wallingford – 242,000 sf.

  • Elm Street - 60 Dodge Avenue, North Haven – 114,000 sf.

  • JMG Milford Realty – 80 Wampus Lane, Milford – 168,000 sf.

  • First Highland’s Lamberton Road, Windsor reportedly under contract…


Benerofe - Wallingford


…And Vacant.

  • Griffin Land – 61 Chapel Road, Manchester – 307,000 sf.

  • S&I Realty - 1690 New Britain Avenue, Farmington – 160,000 sf.

  • Blackhammer LLC - 283 Main Street, New Hartford – 220,000 sf.

  • New Boston – 777 Brook Street, Rocky Hill – 100,000 sf.


Griffin Land - Manchester


Land Sales Continue…

  • Walgreens purchases 130 acres at $100,000 per acre…

  • Out of state developer reported to be u/c in Rocky Hill…

  • Out of State company u/c in S Windsor on 105 acres…


…Speculative Development Continues…

  • Griffin Land continues Rainbow Road development.

  • Out of state developer to develop Rocky Hill land.

  • DeMattia Companies developing 200,000 sf in Bloomfield


…Speculative Development Continues (con).

  • 1070 North Farms LLC breaking ground on 42,000 sf (Bldg II) in Wallingford.

  • Rumor of up to 500,000 sf of spec development considered in Suffield.


…Design Build Construction Continues.

  • Walgreens breaks ground on 800,000 sf in Windsor.

  • DataMail completes 100,000 sf facility in Windsor.

  • IP/xpedx breaks ground on 85,000 sf on Middle Street, Middletown.

  • Siracusa Moving & Storage nearly completed on 50,000 sf in New Britain.


Where are we going tomorrow?

“The Great Crystal Ball”


Corporate Product Continues to Come to Market…

  • Lego Systems - Over 1.0 mill sf available in Enfield.

  • Winchester Arms - 225,000 sf in New Haven.

  • Franklin Farms – 370,00 sf in Pomfret.

  • Hitchcock Chair – 110,000 sf in New Hartford.


However, Existing Space to Be Absorbed…

  • 75 Aircraft Road, Southington…rumored to be pending lease.

  • 250,000 sf tenant nearing terms in Hartford market.

  • CERC courting 120,000-200,000 sf freezer/cooler prospect.

  • PA based distributor looking for 200,000 sf of warehouse space.


Low Bay Space…

  • Continues to be “ugly step child” of high bay, BUT…

    • Depth of market…

    • Lack of Inventory…

    • Increase in manufacturing/assembly…

      MAKES IT LEASABLE!!! At a Price!!


Speculative Construction Continues to be Absorbed…

  • Griffin Land…Fed Ex, AAR, AW Hastings etc. etc.


Albeit, Possibly at Less than “Pro Forma”…

  • Over 500,000 sf being built in northern market…Look out for “Price Wars”.

  • Cost of Construction for TI’s putting downward pressure on net lease rate.


Sale Prices May Have Peaked…

  • User Deals – Yes.

    • Cost of Construction, although high is somewhat stable.

    • Medium sized sales still challenged.

    • Small buildings still “slam dunks”!

  • Investment Deals

    • Probably still a little room left on the upside. Lots of investors chasing little product.


Land Prices Continue to Rise…

  • Even (and maybe especially) large tracks.

  • Small parcel sales…Still attractive.


THANK YOU

Mark J. Duclos

Sentry Commercial

860 983 5630


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