I am working on some market research for a client with some property in Bluegrass Industrial Park, in Jeffersontown, KY. I thought this information might be useful and/or interesting to some.
Bluegrass Industrial Park
Bluegrass Industrial Park comprised approximately 1800 acres and is home to approxmiately 850 businesses with approximately 38,000 employees. If you are unfamiliar with the Park, it is located adjacent to I-64 with two interstate exits (Hurstbourne Pkwy and Blankenbaker Pkwy).
Presently (as of April 21, 2011) there are 27 Industrial Properties listed for sale on KCREA (Kentucky Commercial Real Estate Alliance). Since January 1 of 2010, 3 industrial properties have sold in the park. All were smaller industrial properties; the smallest being 8,400 SF while the largest was 16,693 SF. The average size was 12,028 SF. The average sale price per square foot was $33.95.
Presently (as of April 21, 2011) there are 79 Industrial Properties listed for lease on KCREA. Since April 1, 2010 (approximately 1 year ago) 54 leases were reported on KCREA. The average size of the lease was 8,217 SF however the median size of the leases was 2,700 SF. Only 6 leases exceeded 10,000 SF.
Although we are seeing some activity with people looking at commercial real estate, the experience of the last year would indicate that we need to remain cautious. With some 27 properties presently listed for sale and only 3 sales reported in the last 16 months, the expected time to sell these properties would be about 12 years.
The leasing picture is somewhat more promising. With 79 listed properties and a reported 54 leases last year, you would expect to lease these properties in about a year and a half. However, you need to take this news with a grain of salt. A closer look reveals that half of these leases were for space 2,700 SF or less and nearly 90% were for less than 10,000 SF. So smaller and shorter leases are the norm.
Things are different for spaces of 10,000 SF or more. Presently, KCREA lists 23 industrial properties with at least 10,000 for lease. Given that in the last year, 6 leases were reported in this size range, you would expect these properties to lease in about 4 years.
Although there is evidence of improvement in the economy and increased interest, data suggests that it is still very much a buyers market. Successful landlords will have their properties in top condition and priced competitively.
Ending on a personal note, it looks like it is going to be a rainy weekend and it looks as though the river will be flooding. Stay dry and have a great weekend.
Don't forget to let me know if you need any help with commercial real estate.
David W. McCoy
Commonwealth Commercial Real Estate
10444 Bluegrass Pkwy
Louisville, KY 40299