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

Connecticut Industrial Real Estate Market

“A View From the Street”


What is 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

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

Things are good!!!!

So then why is everyone so worried?!?


Where are we today

Where are we today?

Activity Continues!!!


Big user deals continue

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

New Breed – North Haven


Big user deals con

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

Big “INVESTMENT” Deals Continue.

Cash Flow AND Vacant


Cash flow

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

Preferred–Cheshire & N Haven


Cash flow con

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

Benerofe - Wallingford


And vacant

…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

Griffin Land - Manchester


Land sales continue

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

…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

…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

…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

Where are we going tomorrow?

“The Great Crystal Ball”


Corporate product continues to come to market

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

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

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

Speculative Construction Continues to be Absorbed…

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


Albeit possibly at less than pro forma

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

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

Land Prices Continue to Rise…

  • Even (and maybe especially) large tracks.

  • Small parcel sales…Still attractive.


Thank you

THANK YOU

Mark J. Duclos

Sentry Commercial

860 983 5630


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