2007 Industrial Market Overview2007 Industrial Market Overview

Jeff Wilke, CCIM, SIOR

Graham & Company Southeast

Huntsville, AlabamaHuntsville, Alabama

Industrial Market OverviewIndustrial Market Overview

•Dominated by the Jetplex and Chase Industrial Parks

•Vacancy rate of less than 5%

•Over 350,000 sf speculative development under construction

•Majority of growth is in the Jetplex area

Jetplex Industrial ParkJetplex Industrial Park

•2,800 acres that surround The Huntsville International Airport and the Intermodal Center

•Offers Foreign Trade Zone #83, U.S. Customs Port of Entry and interstate access via I-565.

Jetplex Recent DevelopmentsJetplex Recent Developments

International Truck and Engine Corporation will assemble its new line of truck diesel engines at a 300,000 sf facility at Jetplex Industrial Park. The new plant will employ 175 employees.

Airport Distribution Center, a 208,000 sf warehouse between I-565 and Short Pike Road.

Jetplex Major TenantsJetplex Major Tenants

International Diesel The Boeing Company Cinram Kohler Intergraph

Chase Industrial ParkChase Industrial Park

•1,700-acre park located in northeast Huntsville

•The park is mostly comprised of single tenant employers.

•Qualitest Pharmaceuticals, a manufacturer of generic drugs, has over 750,000 sf of office and manufacturing space in the park.

•Cinram, one of Huntsville’s largest employers, uses a 1.4 million sf facility to manufacture compact discs.

Chase Recent DevelopmentsChase Recent Developments

Kömmerling USA expanded its facility by 100,000 sf. More than sixty new jobs will be added with the expansion.

Cinram expanded its current facility by 263,000 sf. Now they have 1,400,000 sf under one roof to make DVD’s for the entertainment industry.

Chase Major TenantsChase Major Tenants

Cinram Qualitest

Pharmaceuticals Hart & Cooley Kömmerling J & J South

Central PPG.

Industrial Land SitesIndustrial Land Sites

JetplexJetplex

Total: 2,800 acres Available: 1,400 acres Price: $58,500 to

$84,500 per acre

Jetplex SouthJetplex South

Total: 1,400 acres Available: 1,400

acres Price: $35,000 to

$43,500 per acre

ChaseChase

Total: 1,700 acres Available: 50 acres Price: $22,500 per

acre

Lowe Industrial ParkLowe Industrial Park

Total: 1,700 acres Available: 50 acres Price: $22,500 per

acre

North Huntsville Industrial ParkNorth Huntsville Industrial Park

Total: 600 acres Available: 200

acres Price: $50,000 per

acre

I-565 Business ParkI-565 Business Park

Total: 60 acres Available: 37 acres Price: $75,000 -

$100,000 per acre

Speculative DevelopmentsSpeculative Developments

Phase II - ADCPhase II - ADC

208,000 sf$4.50 psf

TradeportTradeport

108,000 sf$5.50 psf

115 Electronics Circle115 Electronics Circle

42,000 sf$7.00 per sf

Recent Industrial SalesRecent Industrial Sales

1000 James Record Road 1000 James Record Road

359,000 sfSale Price - $7,440,000Cap Rate – 11.86%

300 Diamond Drive300 Diamond Drive

300,000 sfSale Price – 10,250,000Cap Rate – 9.31%

2845 Wall Triana Highway2845 Wall Triana Highway

118,759 sfSold out of bankruptcy and is being

re-developed.

Questions?Questions?