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FREDERICKSBURG, VA
INDUSTRIAL SNAPSHOT
A Cushman & Wakefield Research Publication
Q2 2013
ECONOMIC OVERVIEW
The economy in Fredericksburg during the second quarter has continued to show signs of strength with decreasing unemployment. The regions unemployment at 5.3% continues to be below the national and state average, and slightly improved from 5.4% one year ago. While sequestration has certainly shown signs of its affect in the government sectors, the overall economy of the region remains strong. The vacancy rate this quarter was relatively unchanged to a year prior and the activity in the market is also flat. Average direct asking rents remain flat at $5.17 psf/yr. STATS ON THE GO
Q2 2012 Overall Vacancy Direct Asking Rents (psf/yr) YTD Leasing Activity (sf) 18.0% $5.17 128,142 Q2 2013 18.4% $5.17 168,318 Y-O-Y CHANGE 0.4pp 0.0% 31.4% 12 MONTH FORECAST
LEASING ACTIVITY
The most recent and significant news in this sector is the announcement that Print Mail Communications Inc. is moving to Spotsylvania County and backfilling a long vacant 100,000-square foot building at 4333 Davenport Road. The company will bring 80+ jobs with this move and it is being touted as a great economic development win through the use of incentives by the county. This will give a much needed boost to the absorption numbers. Tenants continue to renew or trade-up to spaces that were previously unobtainable. While it is still a tenants market, that may soon be changing with the forecasted decreasing vacancy rate as supply tightens and demand increases.
OUTLOOK
With the partial lease-up of one building that made up a large portion of the markets vacancy, and the increased activity from interested end-user purchasers, the horizon looks bright for the remainder of the year. With the continued good news from the residential markets and home builders activity, the industrial sector may see the job growth it has needed. These are great leading indicators for our industry, which forecast continued improvement for the quarters to come.
2009
-78.4
2010
2011
2012 ABSORPTION
2013 YTD
LEASING ACTIVITY
For more information, contact: Brad McGetrick, Director of Brokerage Services 804 697 3558 brad.mcgetrick@thalhimer.com
The market terms and definitions in this report are based on NAIOP standards. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals. 2013 Cushman & Wakefield, Inc. All rights reserved.
FREDERICKSBURG, VA
SUBMARKET INVENTORY OVERALL VACANCY RATE 30.6% 19.9% 24.1% 16.7% 13.3% 18.4% YTD LEASING UNDER ACTIVITY CONSTRUCTION YTD CONSTRUCTION COMPLETIONS 0 0 0 0 0 0 YTD DIRECT NET ABSORPTION (3,118) 3,200 17,705 46,597 (4,282) 60,102 YTD OVERALL NET ABSORPTION HT $0.00 $0.00 $0.00 $10.25 $6.00 $8.57 MF $0.00 $0.00 $0.00 $4.00 $6.24 $4.49 DIRECT WEIGHTED AVERAGE NET RENTAL RATE OS W/D $0.00 $2.24 $0.00 $7.25 $9.26 $10.49 $9.83 $3.28 $4.60 $5.94 $6.17 $5.17
Caroline County King George County Fredericksburg City Spotsylvania County Stafford County TOTALS
0 0 0 20,000 0 20,000
MARKET HIGHLIGHTS
SIGNIFICANT Q2 2013 LEASE TRANSACTIONS 39 Synan Road 101 Juliad Court* 509 Lendall Lane SIGNIFICANT Q2 2013 SALE TRANSACTIONS N/A SIGNIFICANT Q2 2013 CONSTRUCTION COMPLETIONS N/A SIGNIFICANT PROJECTS UNDER CONSTRUCTION 11205 New Albany Drive SUBMARKET MAJOR TENANT COMPLETION DATE BUILDING SQUARE FEET SUBMARKET Spotsylvania County Stafford County Stafford County SUBMARKET TENANT Cargo Services Group Response Dynamics Hour Development Corp BUYER PROPERTY TYPE Warehouse/Distribution Warehouse/Distribution Warehouse/Distribution PURCHASE PRICE / $PSF SQUARE FEET 35,000 14,000 5,000 SQUARE FEET
For more information, contact: Brad McGetrick, Director of Brokerage Services 804 697 3558 brad.mcgetrick@thalhimer.com
The market terms and definitions in this report are based on NAIOP standards. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals. 2013 Cushman & Wakefield, Inc. All rights reserved.