10/1/2006   

 

Industrial, Q4 2006......................Connecticut and Western Massachusetts industrial markets remain active...General concern for next year (what else is new!!!) but for the time being most brokerage firms remain very active...Vacancy rates generally peak in the low teens...Most vacancies in the single to low double digit range...Continued leasing activity in the larger building sector markets (New Breed, North Haven CT...Tempur-pedic, Clinton CT...Federated Stores, Cheshire CT...C&S, East Windsor CT...Vaupell Industrial, Agawam MA) as well as the design build and build to suit market...Sales activity in larger buildings remains strong (cash flow still sells!) although investors becoming more conservative on future rent increase projections...Speculative construction remains active in CT (Griffin Land in Bradley Airport region and Winstanley Enterprises in Rocky Hill CT region) and keeps inventory fresh in these markets...however woefully low and stale in Western Mass...Continued softness in the mid market range in CT...30,000 - 50,000 sf...Can't quite explain that one!! But small market (10,000 - 30,000 sf) still healthy...Both markets generally healthy in MA...much of this due to the lack of inventory...Concerns about increasing inventory...mostly in the "corporate owned" sector...Lego (Enfield), Mustad (Bloomfield), Big Lots (Pittsfield), Reflexite (Avon), Hitchcock (New Hartford) etc...The "crystal ball"??? We are looking for continued overall strength in the markets throughout 2006 and well into 2007 (first 2 quarters anyway)...from there...well, we'll give you those predictions in the next couple of reports...when the crystal ball gets a little clearer!!! : )

 

Keep smiling!