Andy Murphy, CCIM of NAI DESCO recently assisted in the purchase of a 31,700 square foot industrial building at 1099 Cassens Industrial Ct in Fenton, Mo. The building was purchased by Hawkeye Trucking Company for use by an affiliate company.
Kevin McKeon, CCIM of NAI DESCO recently assisted Miami Valley Paper Tube Company in the sublease of 29,962 square feet of industrial space at 2303 Chaffee Dr in Maryland Heights, Mo. The company, which distributes products for the printing industry, subleased the space from Pomeroy IT Solutions Sales Company, represented by John Sheahan, Jr., SIOR also of NAI DESCO.
As inflation takes hold, generations that have never witnessed inflation will experience its destructive power, says NAI chief economist Dr. Peter Linneman. In his new white paper, Dr. Linneman discusses the potential effects inflation will have on the commercial real estate industry. The following is an excerpt:
No one deserves less forecasting credibility than the Fed. Over the last two decades, their macroeconomic forecasts have been among the poorest of any forecasters, despite the fact that they are the only forecasters who know macro policy decisions before they are announced. The Fed’s abysmal forecasting record makes our record look extraordinary, as at least we forecasted a 2009 recession in early 2006. Even as the recession was well under way, the Fed was saying there was no recession. Yet the Fed’s forecasts continue to gain respect.
Barry Iken and Matt Hirsch of NAI DESCO successfully represented the landlord, Franco, Inc., in the lease of 1,400 square feet of retail space at Belleau Creek Plaza, located at 8091 Mexico Rd in St. Peters, Mo. The space was leased to Mia Bella Salon.
Matt Hirsch and Barry Iken of NAI DESCO successfully represented Premier Medical Specialist LLC, doing business as Des Peres Hospital, in the lease of 3,695 square feet of medical space in the on-campus building at 2325 Dougherty Ferry Rd in Des Peres, Mo. The office, which was leased from Windrose St. Louis I Properties LLC, will house internal medicine specialists.
Josh Hibbits of NAI DESCO successfully represented Family Dollar Stores of Missouri, Inc. in the lease of 8,583 square feet of in-line retail space at the Surrey Plaza, located at 2548-2576 N. Lindbergh in Florissant, Mo. Family Dollar, who leased the space from Bridle Development Corp., anticipates a summer opening.
Gary Essman of NAI DESCO recently completed the lease of 11,638 square feet of retail space at Washington Square in Washington, Missouri to Petco. Essman represented the landlord, Market Place Phase II Development, LC in the 10-year lease. The store is expected to open in June or July of this year and will occupy part of the former JC Penney space. The 111,500 square foot shopping center has only 8,000 square feet remaining.
The NAI DESCO Investment Services Group recently closed the sale of Grindstone Canyon Apartments, a 200-unit multi-family property located in Columbia, Missouri. The asset commanded a sales price above $15 million.
John Mason, an investment broker in NAI DESCO’s St. Louis office, had the exclusive listing to market the property on behalf of the seller, Southwind Capital, LLC. Mason and Andy Port, a NAI DESCO principal, secured the buyer, Thiemann Real Estate, LLC.
Grindstone Canyon Apartments are located at 3101 Old 63 South in Columbia. The apartments were built in 2004 and were 98-percent occupied at the time of purchase. The property sits on 11.9 acres and has 220,000 square feet under roof including a 10,000 square foot club house.
The following is an excerpt from Vice President Tom Erman’s presentation at the annual St. Louis SIOR Forecast breakfast:
I saw an article recently that stated “If we are always looking in the rear view mirror it is hard to keep our eyes on the road ahead.” The lesson is obvious, we can not ignore the past but rather we should learn from it and have the ability to quickly look forward and responsively meet the challenges of our daily tasks.
In the early 90’s we saw the commercial real estate market in a state of upheaval, with the savings and loan debacle causing values to plummet. The eventual result was a turn around starting in the mid 90’s with values of properties reaching market level heights not seen before.
After minimal shifts in the early portion of the year, the industrial market showed improved net absorption through the end of 2010. Less than 200,000 SF of new industrial space was delivered in the current year, a historic low, which assisted in absorption gains. The combination of increased absorption and lack of new construction lowered the industrial vacancy rate in the St. Louis metro area nearly three percentage points over the past year, from 10.6% at the end of 2009 to 7.9% at the end of 2010.
Vacancy rates in both flex space and warehouses have trended downwards, and overall vacancy in St. Louis is approximately two percentage points lower than in the United States as whole.
Rental rates in the industrial market have hovered steadily around $4.20 per square foot for the past year, with little upwards or downwards movement.
Click here to read our full St. Louis metro industrial report, featuring detailed submarket information and major transactions from the quarter.