The Triangle’s industrial warehouse market with over 23 million square feet has shown positive net absorption during the 2nd quarter of 2010. This is significant since the previous seven quarters have reflected negative absorption. Stagnant job growth, a slowdown in the construction industry, and a decrease in manufacturing have all contributed to the negative warehouse absorption. This past quarter was a positive sign for us, but we still have a long way to go before the market reaches equilibrium.
Additional good news is that due to a limited supply of available buildings to purchase, existing buildings are maintaining their value in Wake and Durham Counties. We recently had the good fortune of selling an 80,000sf building by RDU airport for $45/psf and a 16,000sf warehouse for $44/psf. Prices significantly drop in the surrounding rural counties as the Hohn building in Louisburg, (Franklin County), sold for $7.50/psf. The Purolator building in Vance County sold between $7.00 – $8.00/psf. The Lenox building in Oxford traded for $19/psf due to an existing tenant in the building wanting to purchase the property.
Industrial land sales in the Raleigh/Durham area continue to be slow. We did recently sell an eight acre site on the south side of Raleigh at I-40 and Hwy 70 for $2.45/psf. This is representative of current market values for industrial land.
If I can assist with any industrial properties in Wake, Durham or surrounding counties, please give me a call at 919-832-0594 or email firstname.lastname@example.org. The Triangle industrial market has been my focus for over 24 years and I would welcome an opportunity to meet with you.