Archive for the 'Industrial Development' Category

With over 12 million square feet (SF) of industrial space in Chittenden County, with Williston accounting for 3,578,000 SF alone, there is apt to be a decrease in growth in a down economy. In fact, with the removal of a 46,000 SF recycling facility and just 36,000 SF of new industrial space coming on the market, 2009 actually saw negative growth, an almost unheard of circumstance under normal market conditions. All in all, we have seen the vacancy rate move to 10.6%, up more than a percentage point from the end of 2009. Industrial vacancy rates can be much more volatile in comparison to other markets because of the way single vacancies of significant size (in square footage) have such an impact on the whole. To illustrate that point, only six separate vacancies, each in excess of 50,000 SF and most notably a 73,000 SF of industrial warehouse in Shelburne, account for nearly 40% of the total vacancy. However, signs are showing at least some of these gaps will be filled soon, as companies learn to adjust their spatial strategies to current and ongoing economic conditions.
Looking ahead, projections show approximately 285,000 SF of new industrial space hitting the market over the course of 2010, with the potential for even more starting toward the end of the year. Many of these projects are on hold, and an overwhelming 87% majority of them are planned for owner occupation, another clear sign of modest risk and conservative speculation strategies. This number is encouraging when compared to 2009 however, when 100% of new industrial development was owner occupied. While these numbers still aren’t strong, they certainly point toward encouraging movement forward, and hopefully a continued recovery in this sector.