oday’s economy is often referred to as “lukewarm” or, more creatively, the “Goldilocks” economy because it’s not-too-hot and not-too-cold. But what exactly can Goldilocks bring to the industrial real estate table? Building on strong returns from 2004, it looks like she’ll bring prosperity instead of porridge, because warehouse demand should increase this year in the industrial sector, as reported by ING Real Estate in April 2005.
The Grubb & Ellis 2005 Real Estate Forecast echoes this positive sentiment, reporting, “Overall, the world outlook
with respect to industrial markets for 2005 is one of quiet optimism, where most industrial cities should see stable to light rental growth and positive absorption.” Grubb & Ellis’ Global Forecast also states that warehouse/distribution has performed well in the United States because of improving economic fundamentals within industrialized nations in 2004. And, “armed with cheap debt and plenty of equity, tenants, owner-users, and investors are in the market for quality industrial space,” reports Grubb & Ellis.
So who’s out there leading the charge in the industrial real estate market? According to the 24th edition of Comparative Statistics of Industrial and Office Real Estate Markets, published by The Society of Industrial and Office Realtors(r) (SIOR), three of the nation’s largest industrial markets located along I-95 in New Jersey and Philadelphia had strong absorption in 2004 — 18.5 million sq. ft. (1.7 million sq. m.) — and have maintained a strengthening demand ratio of 1.25. Here’s a look at some of the industry’s heavy hitters, several of whom deal exclusively in the Northeast.
Mountain of Services Saves ‘Tremendous Chunks of Time’Founded in 1968 and headquartered in Secaucus, NJ, Hartz Mountain Industries, Inc. owns and manages the largest privately held commercial real estate portfolio in the United States, comprising approximately 200 properties and totaling more than 35 million sq. ft. (3.3 million sq. m.) in the northern New Jersey/New York area. Just over half of that footprint falls under the industrial heading, according to Walter M. Smith, Jr., executive vice president of operations for Hartz Mountain.
“We offer services to a perspective client that we believe other firms can’t,” says Smith. “As a fully-integrated, full-service development company, we maintain in-house departments for leasing, management, finance, acquisition, architecture, construction, development, planning, marketing, design, and property management. We all can sit under one roof with a client and figure out together how to produce a facility to meet all of our client’s needs.”
By controlling the development process from end-to-end, Hartz Mountain has some very satisfied clients, including Lantis Eyewear, Corporate Express, Panasonic, Inc., UPS, Calvin Klein, and Kenneth Cole, to name a few. These clients are not alone in their admiration of Hartz, which has been recognized by NJPA Real Estate Journal as the “Best Developer of 2004.”
One of Hartz’s largest projects is Harmon Cove in Secaucus, N.J. Acquired by Hartz in 1969, this 750-acre (304-hectare) tract of barren land was often overlooked by others, thinking it was too difficult to build up and too risky to warrant investment. However, with vision, resources, and lots of talent, Hartz created roads, installed utilities, and a huge warehouse distribution park was developed. Today, Harmon Cove contains over 1,400 residential townhouses and high-rise luxury condos, more than 12 million sq. ft. (1.1 million sq. m.) of office and warehouse space, a wide variety of retail outlet stores, a 300-room hotel, and a 200-bed hospital. Located within Harmon Cove is Harmon Studio City, home to MSNBC’s $65-million state-of-the-art production facility, developed by Hartz Mountain. In addition, Lantis Eyewear is settled into a 350,000-sq.-ft. (32,515-sq.-m.) distribution center and corporate office space, complete with a racking system with automatic forklift capability, and highly-advanced conveyor systems.
“I submit that the advantage we have over others is that we can deliver a specialized facility with tremendous speed and efficiency,” contends Smith. “Fast track is the norm for us. By having the capabilities in-house, we save our clients tremendous chunks of time.”
The Grubb & Ellis 2005 Real Estate Forecast echoes this positive sentiment, reporting, “Overall, the world outlook
with respect to industrial markets for 2005 is one of quiet optimism, where most industrial cities should see stable to light rental growth and positive absorption.” Grubb & Ellis’ Global Forecast also states that warehouse/distribution has performed well in the United States because of improving economic fundamentals within industrialized nations in 2004. And, “armed with cheap debt and plenty of equity, tenants, owner-users, and investors are in the market for quality industrial space,” reports Grubb & Ellis.
So who’s out there leading the charge in the industrial real estate market? According to the 24th edition of Comparative Statistics of Industrial and Office Real Estate Markets, published by The Society of Industrial and Office Realtors(r) (SIOR), three of the nation’s largest industrial markets located along I-95 in New Jersey and Philadelphia had strong absorption in 2004 — 18.5 million sq. ft. (1.7 million sq. m.) — and have maintained a strengthening demand ratio of 1.25. Here’s a look at some of the industry’s heavy hitters, several of whom deal exclusively in the Northeast.
Mountain of Services Saves ‘Tremendous Chunks of Time’Founded in 1968 and headquartered in Secaucus, NJ, Hartz Mountain Industries, Inc. owns and manages the largest privately held commercial real estate portfolio in the United States, comprising approximately 200 properties and totaling more than 35 million sq. ft. (3.3 million sq. m.) in the northern New Jersey/New York area. Just over half of that footprint falls under the industrial heading, according to Walter M. Smith, Jr., executive vice president of operations for Hartz Mountain.
“We offer services to a perspective client that we believe other firms can’t,” says Smith. “As a fully-integrated, full-service development company, we maintain in-house departments for leasing, management, finance, acquisition, architecture, construction, development, planning, marketing, design, and property management. We all can sit under one roof with a client and figure out together how to produce a facility to meet all of our client’s needs.”
By controlling the development process from end-to-end, Hartz Mountain has some very satisfied clients, including Lantis Eyewear, Corporate Express, Panasonic, Inc., UPS, Calvin Klein, and Kenneth Cole, to name a few. These clients are not alone in their admiration of Hartz, which has been recognized by NJPA Real Estate Journal as the “Best Developer of 2004.”
One of Hartz’s largest projects is Harmon Cove in Secaucus, N.J. Acquired by Hartz in 1969, this 750-acre (304-hectare) tract of barren land was often overlooked by others, thinking it was too difficult to build up and too risky to warrant investment. However, with vision, resources, and lots of talent, Hartz created roads, installed utilities, and a huge warehouse distribution park was developed. Today, Harmon Cove contains over 1,400 residential townhouses and high-rise luxury condos, more than 12 million sq. ft. (1.1 million sq. m.) of office and warehouse space, a wide variety of retail outlet stores, a 300-room hotel, and a 200-bed hospital. Located within Harmon Cove is Harmon Studio City, home to MSNBC’s $65-million state-of-the-art production facility, developed by Hartz Mountain. In addition, Lantis Eyewear is settled into a 350,000-sq.-ft. (32,515-sq.-m.) distribution center and corporate office space, complete with a racking system with automatic forklift capability, and highly-advanced conveyor systems.
“I submit that the advantage we have over others is that we can deliver a specialized facility with tremendous speed and efficiency,” contends Smith. “Fast track is the norm for us. By having the capabilities in-house, we save our clients tremendous chunks of time.”