Demand for New Product Revives Along With the Economy, But Development Totals Remain Miniscule Compared With 1990s, Early 2000s Peaks
More than 140 buildings totaling just under 19 million square feet of industrial space
was completed in selected U.S. markets during the third quarter, the largest amount of new space delivered on a quarterly basis so far in 2013.
Developers delivered 129 buildings totaling more than 16.2 million square feet in the second quarter and 132 buildings with a cumulative 15.6 million square feet in the first three months of 2013, according to the National Industrial Market report. Nearly 23 million was delivered in fourth-quarter 2012, the largest total since mid-2009.
In addition, CoStar was tracking more than 61.2 million under construction as of Sept. 30 in the selected markets.
The largest building developer during the third quarter was the 1.3 million-square-foot build to suit in the Memphis, TN, market for Helen of Troy Ltd., a designer and developer of personal care and household products. in Panattoni Development’s Whispering Pines business park in Olive Branch, MI, in the Memphis, TN, market.
Initial operations at the facility in Panattoni Development’s Whispering Pines business park in Olive Branch, MI, which houses the company’s Personal Care and Healthcare/Home Environment appliance businesses, began in the first week of September, Helen of Troy Chairman, CEO and President Gerald J. Rubin said last week.
Other warehouse projects of more than 1 million square feet completed year to date include a nearly 1.3 million-square-foot build to suit for Home Depot delivered by Taylor & Mathis, Inc. in Atlanta; and a 1 million-square-foot facility at 3851 Youngs Road in Joliet, IL, in the Chicago market completed in the first quarter by Clarius Partners, LLC.
The largest projects under way at the end of the third quarter included two Prologis projects, a 1 million-square-foot building fully leased by Amazon.com at Prologis Park Tracy II in Stockton, CA; and Prologis Ports Jersey City, a 878,564-square-foot facility that is 84% pre-leased.