News
Industrial Strength
July 1, 2010
| There isn't much Bradford Commercial Real Estate Services president Kevin Santaularia won't do to get a deal (turn your back and you might find him spinning signs on street corners). The firm's already leased 2M SF in about 200 transactions YTD. | |
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| We were joking about the sign thing, but Kevin's on board. The boutique firm's transactions are 30% ahead of 2009. Kevin tells us the industrial market is moving locally and regionally even as national companies continue to hold on to their wallets. “We are in unchartered waters from the perspective of industrial demand, flat at best,†Kevin tells us. Bradford's strategy: field offices in the four major industrial sub-markets. In a flat market, the business becomes a chess game, he says. “We are in rare air having leased and sold 100M SF since 1989. | |
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| Among some of Bradford's recent deals: Garland's Gateway East Business Center (above) renewed two tenants for 113k SF. SVP Susan Singer worked for landlord, Northwestern Mutual Life Insurance Co, renewing Bearcom Operating for 91k SF and worked with market director Chris Stout to renew M Solutions' 23k SF. David Little Real Estate Co. repped the tenant in that deal. Kone leased 20K SF of flex industrial space in Twin Creeks Business Center at 1303 N. Watters Rd. in Allen from Twin Creeks Warehouse Venture. Susan and Chris repped the landlord in this deal, too. Site Selection Group's Jeff Patman represented Kone. | |
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| Bradford's success isn't isolated. Our NY reporter met with new Cushman & Wakefield industrial head Jim Dieter (no, he's not from around here, but you all went to the same schools, anyway.) He's “cautiously optimistic" because the industrial manufacturing index has shown increases for the past 10 months. The 35-year industry vet tells us that as customers require more product on store shelves, inventories are being replenished—now companies that reduced their real estate footprints need to expand again. His forecast? An uptick in demand will lead to positive absorption throughout '11. And this is good news for the economy as well—manufacturing creates jobs, grows companies, and enhances the railroad and shipping industries. The only factor that might temper this demand is if job indicators don't coincide with actual employment. | |
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| DFW's Q1 leasing activity saw a 54.7% decline year-over-year, but tenants have not relinquished space to date at the same level as '09, according to Cushman & Wakefield. With no new spec development on the horizon, look forward to a firming market and reduced incentives. Strengthened leasing should continue at a steady pace through the end of the year. (Pictured is Twin Creeks Business Center.) Watch for Jim to stop by soon—although the Chicago-based exec has only been in his position for three months, he's already visited NYC, NJ, Philly, Baltimore, Orlando, LA and Toronto (next up is here and Atlanta). | |
