Industrial Real Estate in Connecticut is Flying Off the Shelves

Actually, the real problem is that there isn't enough to fly off anything.  For many years now, industrial real estate has languished, and much of it has been converted into other uses.  Little new square footage has been built.  As a result, there is a real dearth of supply.  With demand booming in many industries, and PPP money shoring up cash balances, people are looking.  And not finding anything, in most cases.

If you need more space, or are planning to move in the next few years, this is the time to put your current property on the market.  As buyers in the residential market abound, there is evidence all around of residents putting down roots in Connecticut.  They will need jobs, or they will own or open businesses.  This is a great opportunity for sellers, since supply cannot simply catch up with demand in the short run.  

It may be cheaper to buy new, and sell what is outgrown. Sellers with land, or extra land around a facility, should consider monetizing that property.  With so much pent-up movement, and a year of doing nothing behind us, 2021 is shaping up to be a great year for real estate.  Why not join in the party now?

No Summer Lull This Year

We may have lost the spring real estate season, but we aren't losing the summer!  Our leads on LoopNet are the most plentiful they've ever been, and our agents are busy.  Given the uncertainty of the pandemic's return, this is either the calm after the storm, or the calm before the second storm (or both).  In either case, buyers are out looking.  

Many of them are thinking that properties will be available at rock-bottom rates, but, as with residential, the supply is too thin for that to be so.  Some lookers are New Yorkers, seeking to move businesses, or just invest where they may have a second home. Some buyers are local, and know that certain property types are hard to find.  The investors may be from anywhere, and we've been finding that they look at many offerings at once, often of completely different types.  

Connecticut, after decades of coming out on the losing end of many measuring metrics, such as job growth or personal income growth, is now enjoying its moment in the sun, as the state that is beating back COVID.  Isn't it nice to be good at something?  So keep wearing those masks, people, so that the buyers stay active and well, and the sellers do too.  That way, everyone wins.

Central Location

We have seen a surge in the popularity of old industrial buildings this year.  Some of them are being used for residential repurposing, but many are put to use as warehouses.  Despite the complaints about our highways, Connecticut is located in a region where most places are accessible easily by truck, and rail goes through the state in more than one direction.  While we have become positioned as an unattractive place to do business, storing and shipping from here seems to be the exception.  Fewer jobs, especially fewer high-end jobs, are created with warehouses, but there is also less risk for the buyers or tenants.  In addition, some of those old industrial facilities have environmental problems, which are less of an issue when they are being used as warehouses, as opposed to living spaces.

Will our resurgence on the warehouse front lead to other development, or further investment in Connecticut?  It's too soon to tell, but it's good  news for those who have owned--and often sat on--those buildings for years now.  We're happy to advise you, if you are such an owner.

Good News from Arizona

I just returned home from Phoenix, and the headlines out there last week crowed that the fourth quarter was one of the best in years for industrial real estate.  There was also a prediction that more expansion was on the way.  Boy, it's been a long time since we've read anything like that about industrial real estate!  Especially in Arizona, where there has been a long period of retrenchment after overbuilding for a couple of decades. 

And that's not the only good news.  Other markets, including many metropolitan areas, are seeing the return of new tenants in retail and other markets.  While prices still seem relatively soft, there are also reports that deals are tightening and incentives lessening. 

While Connecticut may be behind the curve in the foreclosure and short sale cycle, since states like Nevada and Georgia, for example, don't require court involvement, we are sure to see the uptick in our own market as the business climate improves.  And isn't that a nice way to start a new year?