Archive for July, 2009

22 Pleasant Street, Randolph, Vermont

Stand alone commercial building in downtown Randolph with 1,000 SF upstairs apartment. Current location of the 3 Bean Café, this space offers great visibility, plenty of parking, and enormous potential for the right buyer. New hardwood floors upstairs and down, this property is priced to sell!

http://www.redstonevt.com/Retail-Residential-Investment-Multi-Family-For-Sale-VT-Commercial-22-Pleasant-Randolph-Vermont/

61 US Route 4, Mendon, Vermont

17 room motel plus owner’s residence (with motel office, lobby, coffee shop), swimming pool with shed, and storage shed all situated on a little over 5 acres. Wonderful views surround this mountain road motel which is less than 3 miles from Killington and less than 2 miles from Pico Ski Resorts. Whether you are new to the motel business or a seasoned veteran, you can argue that the location presents a wonderful opportunity. The property is being sold in AS/IS condition. Showings will be by appointment only and will be conducted the week prior to bids being due. For a full package on the property with a description of the Bid Process, please call or e-mail Peter Yee.

http://www.redstonevt.com/Business-Motel-For-Sale-Bid-Auction-VT-Commercial-Route-4-Mendon-Vermont/

45 Avenue D, Williston, Vermont

Offering good visibility and curb appeal! A 10,645 SF mostly air conditioned commercial building, currently Kittredge’s showroom space. Layout currently consists of a large showroom, a few private offices, admin space and warehouse with a dock. 13’-20’ ceiling height, 400 amps 3 phase power, built around 1976. Available November 1st.

http://www.redstonevt.com/Office-Warehouse-Industrial-For-Sale-For-Lease-VT-Commercial-45-Avenue-D-Williston-Vermont/

52 River Road, Stowe, Vermont

Unique development/investment opportunity in Stowe, offering 19,823 SF of warehouse/retail/office and storage space on 5.66 acres of land. Perfect for light manufacturing, warehouse, retail, or office space. Located in serene country setting, yet conveniently located literally minutes from downtown. Plenty of parking as well as a 50-year lease on additional parking lot. Waterfall offers micro-hydro power potential. 3-phase power, municipal water and sewer serves the property. This is a must see!

http://www.redstonevt.com/Land-Office-Warehouse-For-Sale-VT-Commercial-52-River-Stowe-Vermont/

A national rating firm RealtyTrac(R) (www.realtytrac.com) has reported that Vermont has both the fewest foreclosures over the first half of the year and the lowest rate as a percentage of housing units. Foreclosure filings were reported on 336,173 U.S. properties in June, the fourth straight monthly total exceeding 300,000 and helping to boost the second quarter total to the highest quarterly total since RealtyTrac began issuing its report in the first quarter of 2005. Foreclosure filings were reported on 889,829 U.S. properties in the second quarter, an increase of nearly 11 percent from the previous quarter and a 20 percent increase from the second quarter of 2008. “In spite of the industry-wide moratorium earlier this year, along with local, state and national legislative action and increased levels of loan modification activity, foreclosure activity continues to increase to record levels,” noted James J. Saccacio, chief executive officer of RealtyTrac.

See the full article here:

http://www.vermontbiz.com/news/july/vermont-continues-have-far-lowest-foreclosure-rate-us-0

For the first two quarters of 2009, the vacancy rate for industrial/warehouse space in Chittenden County has been 9%. This is a very acceptable vacancy rate considering the depth and severity of this recession, and given that the historic average vacancy rate is 7.4%. Although we have experienced a net decrease in occupancy over the past 12 months, there are still local companies which have contributed to space absorption, such as Green Mountain Coffee Roasters and Blodgett Ovens.

The industrial market in this recession versus the last significant recession in 1989-1992 seems to be quite different. The 1989-1992 recession provided significantly more foreclosures, and bank-owned properties and vacancy rates increased to over 10%. It is widely believed that the Vermont State and Chittenden County economies tend to be insulated and lag behind national economic trends. This seems to hold true with many fearing that national economic impacts will still be chiseling away at our economic foundation after the rest of the nation has turned.

With the increased vacancy rates, lease rates are trending lower. Average industrial space is currently leasing at $4.50 – 6.00 per SF with the tenant paying the NNN expenses which will typically add another $1.50 per SF to the occupancy costs. A prime example of warehouse/ industrial space is 68 Nesti Drive in South Burlington. The other factors that favor lower lease rates are the cost of construction and cost of money, which have significantly been reduced in the last twelve months.

However, capitalization rates have recently increased. This is a bit unusual as the interest rates are historically low. Investors seem to be more cautious with their cash, and are looking to the capitalization rate for their return on money, not appreciation.

New supply in 2009 is projected to be limited with no new speculative projects planned and a few small owner-occupied driven projects. These projects will most likely contribute approximately 50,000 SF of space to the marketplace.

68 Nesti Drive, South Burlington:

http://www.redstonevt.com/Office-Warehouse-Industrial-For-Lease-VT-Commercial-68-Nesti-South-Burlington-Vermont/

Other exceptional Industrial Properties include:

133 Elm Street, Winooski:

http://www.redstonevt.com/Warehouse-For-Lease-VT-Commercial-133-Elm-1-Winooski-Vermont/

312 Commerce Street, Williston:

http://www.redstonevt.com/Office-Warehouse-For-Sale-For-Lease-VT-Commercial-312-Commerce-Williston-Vermont/

823 Ferry Road, Charlotte:

http://www.redstonevt.com/Office-Warehouse-For-Lease-VT-Commercial-823-Ferry-2-Charlotte-Vermont/

The Chittenden County office vacancy rate continued to climb this spring, reaching greater than 12% of the approximately 7.1 million total square feet of office inventory.  This is up from a 10% vacancy rate last fall, and almost double the historic average of 6.7%.  Despite these numbers, projections show record growth of office space in this market for the coming year. Space at 110 West Canal Street in Winooski is a prime example of the newer office space. A total of 326,000 SF of new office space is scheduled for completion by the end of 2009, a 5% total increase.  Notable additions to the supply include a 27,200 SF build to suit Homeland Security complex in South Burlington, the development of a 32,650 SF building for US Immigration in Williston, and a 138,000 SF former IBM building in Williston that is now available for lease.  With the abundance of supply and variable demand, we expect vacancy to exceed 14% by the end of 2009.   In terms of lease rates, office space in the Central Business District (CBD) are stable, demanding $13-$17 per SF for Class A, with Class B ranging from $8-$13 per SF.  An example of Burlington CBD office space is 115 College Street, 2nd and 3rd floor.  Despite current economic conditions, occupancy in the CBD is still strong.  We are seeing vacancy declining, down from 4.5% last fall to 4% currently.  With a 16 year historic average of 6.2%, these are encouraging numbers.   The suburban market however is weakening, with Class A calling for $12-$16 per SF, and Class B in the $7-$12 per SF range.   This is primarily due to a surplus of supply in this sector, and a vacancy rate of 14.7%, more than double the historic average.

115 College Street, Burlington, 2nd Floor:
http://www.redstonevt.com/Office-For-Lease-VT-Commercial-115-College-2-Burlington-Vermont/

115 College Street, Burlington, 3rd Floor:
http://www.redstonevt.com/Office-For-Lease-VT-Commercial-115-College-3-Burlington-Vermont/

110 West Canal Street, Winooski:
http://www.redstonevt.com/Office-For-Lease-VT-Commercial-110-West-Canal-Winooski-Vermont/