research...fort wayne 3q16 industrial market corporate headquarters 4100 edison lakes parkway suite...

MARKET AT A GLANCE

Research

3Q16

(Current Quarter)

2Q16

(Previous Quarter)

2Q15

(Previous Year)

12 Month

Forecast

Total Inventory

(Local Profile)69M SF 69M SF 56M SF

Vacancy Rate 4.8% 6.4% 7.9%

Quarterly Net Absorption 452,484 83,365 -50,170

Average Lease Rate $3.74 $3.90 $3.67

Under Construction 933,000 SF 885,000 SF 16,440 SF

Completed Construction 0 0 275,000

FORT WAYNE3Q16 INDUSTRIAL MARKET

VACANCY RATE DROPS,

CONSTRUCTION INCREASES

The Northeast Indiana Industrial Market shows the greatest strengths

when comparing all of the commercial market sectors, with a reported

overall vacancy in usable space of 4.8%. Key indicators suggest the

industrial market will continue on a strong growth path that will positively

impact the Fort Wayne industrial sector. Availability of industrial space

continues to tighten, and companies looking to expand are finding fewer

acceptable/desirable existing buildings for sale or lease. In the coming

months, look for more build-to-suit developments to occur as expanding

users are unable to fulfill their requirements with existing buildings.

Expect sale prices and lease rates to continue to increase as landlords

and sellers will have leverage over tenants and buyers.

Economic ConditionsThe U.S. Bureau of Labor Statistics reported an unemployment rate of

4.2% for Fort Wayne in August 2016. According to the CES survey of

employers, there were 200 jobs lost in August for a total of 223,400 jobs.

The CPS survey of households showed 211,130 employed persons for

the month. Overall, the United States gained 255,000 jobs since last

month and has a 4.9% unemployment rate.

69M SF 4.8% 452,484

SF$3.74

Total

Inventory

Vacancy

Rate

Net

Absorption

Average

Lease Rate

Under

Construction

Unemployment

Rate

4.2%933K

SF

2%

4%

6%

8%

10%

$1

$2

$3

$4

$5

3Q10 3Q11 3Q12 3Q13 3Q14 3Q15 3Q16

Average Lease Rate (Price/SF) Vacancy (%)

MARKET PERFORMANCE

www.cressyandeverett.com

Welcome!Our Fort Wayne office is pleased to welcome

Gary Buschman. As Associate Broker, Gary

will leverage his international contacts with his

19 years of experience in negotiating leases for

warehousing and retail sites. Gary is an

accomplished business owner, both locally and

abroad, and has a proven track record in Sales,

B2B, Retail, Wholesale and ECommerce.

AVERAGE LEASE RATE & VACANCY

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Ortho Supplier Opens First Indiana Location

An Illinois-based medical device supplier recently cut the ribbon on its first

Indiana operation. The 43,000 square-foot plant is the first to open in

Warsaw’s new Tech Park along Polk Drive on the city’s north side.

Banner Medical detailed its move to Warsaw in late 2015. The company

serves clients in the orthopedic, spine, extremities, instrument and dental

markets, dozens of which are already located in Kosciusko County. The

$6.3 million investment will support the Banner Service Corp. subsidiary,

which launched in 2008. The new material processing center is expected

to employ about 75 people by 2019.

Miller Poultry Breaks Ground For Planned Expansion

Miller Poultry, one of Steuben County’s largest employers, is getting

bigger. The company recently broke ground on an expansion to

accommodate its continued growth. The processing plant has added a

second shift and is processing 650,000 birds weekly. Miller Poultry

currently employs around 800 people. Along with the expansion, the

company plans to start a breeder operation which will add approximately

52 new contract growers to the area and add significantly more jobs.

Tax Abatement Approved For Kendallville Expansion

Bollhoff USA was granted a seven-year tax abatement on $998,442 in

new equipment that will increase production capacity. Located 36 miles

north of Fort Wayne, Kendallville-based Bollhoff manufactures fasteners

for joining solutions for aluminum, high-strength steel and composite

applications at its plant in the East Industrial Park. The plant is located in

a designated economic revitalization area and eligible for an abatement.

The new equipment is an optical vision system made in Italy for parts

sorting, inspection and qualification.

$90M Plastics-To-Fuel Recovery Facility Begins Engineering

Engineering will soon begin on Renewable Energy Solutions (RES)

Polyflow’s first regional plastics-to-fuel energy recovery facility. Once

operational, the 25-acre site will be the largest commercial plastics-to-fuel

energy recovery facility in the world. The project is expected to create

hundreds of engineering, construction and manufacturing jobs once

completed. Company officials expect start-up of the Ashley facility in

2018. Incentives offered by Steuben County, Ashley and Indiana were

key in luring RES Polyflow to Indiana.

Buildings In The Works Near GM Plant

The Lafayette Center Road area near the General Motors will soon

expand with GM-related industrial building projects, according to

documents filed with Allen County planning and building officials. The

county plan commission will have a public hearing on rezoning and

approving a primary development plan for an approximately 123,750-

square-foot, 50’ high industrial building. The site is proposed for a Tier 2

or Tier 3 GM supplier.

Banner Medical | Warsaw, Indiana


OUR MARKET IN MOTION


RES Polyflow | Steuben County, Indiana

Miller Poultry | Steuben County, Indiana

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NOTABLE LEASE TRANSACTIONS

Tenant Building Submarket Type Square Feet

Zimmer Biomet 2666 S. Country Club Road Fort Wayne Northwest Direct 54,000

Diamond Comic Book Distr. 3102 Brooklyn Avenue Fort Wayne Southwest Direct 69,329

Kanak Exports India 325 Hovan Drive Fort Wayne Northeast Direct 23,000

NOTABLE SALE TRANSACTIONS

Building Submarket Sale Price Price/SF Square Feet

702 Ley Road Fort Wayne Northwest $625,000 $27.78 22,500

2025 S. Anthony Boulevard Fort Wayne East $300,000 $26.78 11,200

6716 Metro Park Drive Fort Wayne Northwest $345,000 $57.50 6,000

SUBMARKET STATISTICS

Submarket

Area

Total

Inventory

(SF)

Under

Construction

(SF)

Total

Vacancy

Rate (%)

Quarter

Absorption

(SF)

Warehouse/

Distribution

Lease Rates

(Price/SF)

R&D Flex

Lease Rates

(Price/SF)

Total Lease

Rates

(Price/SF)

Fort Wayne

Northeast13,525,504 60,000 2.5 -157,559 $4.41 $5.13 $4.60

Fort Wayne

Northwest4,491,944 48,000 5.1 5,619 $3.64 $4.62 $3.90

Fort Wayne

Southeast11,038,024 N/A 6.6 8,984 $3.25 $4.80 $4.02

Fort Wayne

Southwest11,435,024 825,000 2.8 101,229 $3.05 $4.25 $3.50

Fort Wayne East 6,267,962 N/A 10.5 395,356 $2.78 $4.15 $3.25

Fort Wayne CBD 1,556,123 N/A 1.6 4,800 $3.11 $4.19 $3.51

Fort Wayne South

(Airport Area)20,742,756 N/A 4.7 94,055 $2.85 $4.27 $3.45

TOTALS 69,057,337 933,000 4.8% 452,484 $3.29 $4.48 $3.74

Newmark Grubb Cressy & Everett (NGCE) quarterly market reports are a compilation of data from multiple sources. The data is reviewed quarterly and adjusted due to circumstances in the market, such as new construction and demolition. The vacancy

square footage is compiled from a combination of online data from multiple major listing services, broker provided listing information and industry knowledge. NGCE has created this report to provide the most accurate information possible. We do not assume

responsibility, however, for errors, omissions, prior sale, lease or withdrawal from the market.


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TOTAL

INVENTORY

UNITED STATES STATE LOCAL

TOTALINVENTORY

(SF) 14.3B 737.9M 69M

VACANCYRATE

5.8% 5.6% 4.8%

NETABSORPTION(% OF INVENTORY) 0.53% -0.1% 0.65%

AVERAGELEASE RATE

(PSF) $5.96 $3.31 $3.74

UNDERCONSTRUCTION

(SF) 191.8M 6.7M 933,000

UNEMPLOYMENTRATE

4.9% 4.5% 4.2%

HOW DO WE COMPARE?

“Currently the industrial vacancy rate remains lower in Fort Wayne compared to the national rate, which is an

indicator of high demand for industrial space in the Fort Wayne area. Industrial businesses continue to be

the top employers in the area, and with the current strength in employment rates, we should see new

construction on the rise to meet the demand.”

Gary Buschman, Associate Broker

Fort Wayne Office

Market Perspective

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OUR FEATURED LISTINGS


10801 Rose Avenue | New Haven, Indiana

Size: 180,000 SF Available: 48,000 SF

Lease Rate: $4.25 PSF NNN + CAMNew to the market, this multi-tenant industrial building is an exceptionally

clean facility. The available suite offers a number of amenities including

a 40,000 square-foot plant area and 8,000 square feet of office space,

heavy power, 100% wet sprinkled, heated and cooled, 24’ ceiling height,

1 grade-level overhead door, 2 interior and 2 exterior loading docks, 1

exterior semi-trailer scale and 2 three-ton cranes.

Proximal to the Fort Wayne East submarket area, the property is located

near the Interstate I-469/US Highway 24 interchange and an

international airport. Newer economic development is strong with

existing and new business investment growth in New Haven including

Corrugated Supplies Inc., Continental Diamond Tool and Central States

Enterprises expanding their operations; FedEx Ground built a new

180,000 SF automated distribution center; and Hoosier Park of Indiana

opened a new facility on the east side of New Haven.

1221 Hartzell Street | New Haven, Indiana

Size: 51,510 SF

List Price: $1,445,000 Lease Rate: $3.50 PSF NNNA business relocating brings this property to the market, which consists

of 51,510 square-feet of industrial space situated on almost 2 acres. The

building features 5 overhead doors and interior overhead fire doors in

two locations and several automatic sliding doors. Heavy power, ceiling

heights from 9’ to 18’, interior and ground gas-forced air units and

central air conditioning throughout the building.

The property is located on the east edge of the Central Business District

of New Haven and is surrounded by single family residential, mixed-use

including commercial and retail businesses, the Allen County Public

Library and New Haven Parks Department. The property is

approximately less than a quarter mile east of Broadway Street, the main

north/south corridor.

6

All information contained in this publication is derived from sources that are deemed to be reliable. However, Newmark Grubb Cressy & Everett (NGCE) has not verified any such information, and the same constitutes the statements and representations only of the source thereof, and not of NGCE. Any recipient of this publication should independently verify such information and all other information that may be material to any decision that recipient may make in response to this publication, and should consult with professionals of the recipient’s choice with regard to all aspects of that decision, including its legal, financial, and tax aspects and implications. Any recipient of this publication may not, without the prior written approval of NGCE, distribute, disseminate, publish, transmit, copy, broadcast, upload, download, or in any other way reproduce this publication or any of the information it contains.

©2016. Newmark Grubb Cressy & Everett has implemented a proprietary database and our tracking methodology has been revised. With this expansion and refinement in

our data, there may be adjustments in historical statistics including availability, asking rents, absorption and effective rents.

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Bill DrinkallManaging Director

260.399.4057 (o)

260.715.3408 (c)

[email protected]

Years of Experience

15

Areas of Specialization

Medical

Office

Retail

Investment (All Segments)

Gary BuschmanAssociate Broker

260.399.4057 (o)

260.348.2769 (c)

[email protected]

Years of Experience

19

Areas of Specialization

Industrial

Retail

Meet Our Team



Corporate Headquarters

4100 Edison Lakes Parkway

Suite 350

Mishawaka, IN 46545

574.271.4060

NEW!Fort Wayne Office

200 E. Main Street

Suite 540

Fort Wayne, IN 46802

260.399.4057

Grand Rapids Office

32 Market Street

Suite 302

Grand Rapids, MI 49503

616.456.6400


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research...fort wayne 3q16 industrial market corporate headquarters 4100 edison lakes parkway suite...

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