Louisville Industrial Real Estate Market

For the last several weeks I have been working on a report for a client detailing the state of the Louisville Industrial Real Estate market.   Most of us have at least anecdotal evidence that things there are getting better but it was really amazing to gather some hard facts.

Last year (2014) marked the return of spec Industrial projects.   The Louisville market added more than 2 Million square feet of industrial space and the overall vacancy rate still declined.    Some estimates claim that the vacancy rate for Louisville industrial space is below 4%.     There were 9 industrial leases signed for 200,000 SF or more totaling nearly 2.7 Million SF.  

According to the Federal Reserve's Burgundy Book for the Louisville region, the two main factors for this are the improvement in the job picture and decline in fuel prices.     Jobs, of course will vary with the economic conditions.   The decline in fuel prices however seems to be largely due to the fracking revolution.    This revolution is leading the US to energy independence perhaps as soon as one year from now.    And it is fundamentally changing the world's energy market as the US becomes the world's number one energy producer.    This bodes very well for the US economy in general and especially benefits two key industries of manufacturing and transportation locally.  

The key players in our industrial market are all bullish on their prospects.   Ford expects car sales to continue to increase.   UPS experienced 8% growth last year and expects things to continue to improve.   Electrolux saw an increase in appliance sales in North America of 6% last year and expects the demand to increase as the North American residential real estate market continues it's comeback.

In short, things are looking good and it looks like we can expect this to continue for a while.

It's really nice to be able to share some good news.

Have a great day!

David

David W. McCoy
Vice President
Commonwealth Commercial Real Estate
dmccoy@ccre.biz

BTW - I am licensed in KY and IN.  I specialize in commercial properties and handle Office, Industrial, Land, Investment and Retail properties.  I work with buyers, sellers, landlords, tenants and investors.   I also work with international real estate and internationals looking for real estate.     Please let me know if I can help you.

Commercial Land - Market Activity and Analysis

As luck would have it, I have several Commercial Land listings again.  Recently I have shared some analysis of the Commercial Land - market activity with some of my land clients.  So I thought I would share it here as well.  

 

In general, there was sort of a bump of activity last year (2012) and there were signs of interest  with a number of calls in the first quarter 2013 on land but it seems that things have quieted down a little as we enter into the summer.  

Looking back at Commercial Land sales, I found that KCREA (Kentucky Commercial Real Estate Association – our Commercial Information Exchange) reported 23 sales of commercial land larger than 5 acres for the 12 month period beginning 4/1/2012.    So about 2 sales per month.   Interestingly, 8 of those 23 were foreclosure sales, auctions or bank sales.   In April of 2013, there were 253 commercial land properties larger than 5 acres which were listed for sale on KCREA.  So there is presently about an 11 year supply of land on the market.

It is no longer news that commercial land in general depreciated about 40% since 2008.  What this tells us is that with roughly a third of the commercial land sales being distressed sales, and an 11 year supply of land at current consumption rate, we can see this downward pressure on prices is still with us.  

On the positive side, the metro market area’s Industrial occupancy is very high and we are beginning to see a shortage of Industrial space.   This has led to some Industrial spec projects for the first time in quite a while.  If this demand continues and if financial institutions begin to loosen their credit somewhat and allow more of these projects, we should expect to see the demand for commercial land to increase in tandem with this activity.  

Of course, land is not a homogenous product.   Location, size, zoning, traffic, roads, visibility, availability of utilities are all factors in addition to price as projects come available.   Each of these will ultimately be a factor in the demand for a particular parcel when new projects are being considered.  

Let me know if you have any questions. 

 

I hope you have a great day!

 

Side note - I am a licensed real estate broker in Kentucky and Indiana and I specialize in Commercial Real Estate.  I handle Office, Industrial, Retail, Commercial Land, Investment and International Properties.   I work with Sellers, Buyers, Landlords, Tenants, and Investors.   Heck I can even set you up with a Residential specialist if you need help.   If you need any help with real estate, give me a call or send me an e-mail.  I would love to help.   

 

David

 

David W. McCoy

Associate Broker

Commonwealth Commercial Real Estate

10444 Bluegrass Parkway

Louisville, KY  40299

 

office: (502) 379-6005

Cell: (502) 905-5274

e-mail: DMcCoy@ccre.biz

 

 

Commercial Land - New Listing on I-65 Interchange

I have a new Commercial Land listing on an Interstate Interchange in Shepherdsville, KY.   There are 77 acres on the southeast quadrant of I-65 and Hwy 44.  It is situated at exit 117 of I-65, 11 miles from Louisville International Airport and UPS World Port.    This property has great highway visability with approximately 2500 feet of frontage on I-65.   All utilities are available.  For sale at $120,000 per acre.  

For more information on this listing or other Commercial Land, give me a call or e-mail me.   My contact information is below.

Thanks and have a great day! 

David

David W. McCoy, MBA
Associate Broker
Commonwealth Commercial Real Estate
10444 Bluegrass Parkway
Louisville, KY  40299

office: (502) 379-6005
cell: (502) 905-5274
e-mail: DMcCoy@ccre.biz

Note - If you have questions about this or about any Commercial Real Estate, please feel free to contact me.   I am a specialist in Commercial Real Estate and I handle Office, Industrial, Commercial Land, Investment and Retail Properties.  I work with Landlords, Tenants, Sellers, Buyers and Investors.     I am also an International Property Specialist and have specialized training to help international real estate investors with real estate needs here as well as US citizens and companies needing assistance internationally.   Heck, I can even set you up with residential help if you need it.    Give me a call.  I would love to help.

Disclaimers - While the information provided is from sources which we deem to be reliable, Commonwealth Commmercial Real Estate cannot warrant this information.    All information provided is subject to review and verification by the interested party as part of the due diligence process. 

KCREA goes International

If you are looking for Commercial Real Estate in Louisville and you are asking a residential realtor and looking at the MLS, I'm afraid that you are searching about 7 or 8 years too late.    Please don't misunderstand, I am not knocking residential realtors at all.  It is just that the MLS eliminated commercial properties from their data base about 7 years ago.   

There are several on-line listing services which provide information on Commercial Real Estate.  I use several and I think that most of the commercial real estate specialists do as well.   Locally, KCREA, the Kentucky Commercial Real Estate Association, has most of those listings.   

KCREA is constantly evolving.  It is not perfect but it does seem to be actively trying to improve.   So I was pleased when I recently discovered that KCREA now has an option to translate the listing into several different languages.   If you do a search for a property and click on one, on the right side of the page, down several lines is an option to translate the page.  If you click on that option, several icons of flags appear.   If you are not familiar with the flags, when you roll over the flags, a label appears displaying the language.  (Languages include: Spanish, Chinese, French, German, Italian, Japanese, Korean, Russian and Hebrew)  Click on the flag and the page will translate.

Pretty cool.   Now, as Paul Harvey would say, the rest of the story.   I speak a little Spanish and truth be told, the translation is not perfect.   Still, while the translation could be a little better, it certainly would be largely understandable to a Spanish speaker.  They might be somewhat amused at the translation but I suspect that they would be able to get the basic information and a decent understanding of what it being offered.  

I for one, think that this is a big step forward.   In our market, this is not yet a major issue although, in our office, we have worked with Cuban immigrants, who spoke almost no English, Russian business owners, who fortunately were bilingual, and Chinese business owners, who brought their kids to translate for them.   In some of our high schools, the students are speaking 30 or 40 different languages as their native language.  

Check it out.   You can go to www.KCREA.com and do some searching.   Then click on the Translate option and select a language.   If you find that you need some help, let me know. 

Thanks for reading and have a great day!

David

David W. McCoy
Associate Broker
Commonwealth Commercial Real Estate
10444 Bluegrass Parkway
Louisville, KY  40299

ofc: (502) 379-6005
cel: (502) 905-5274
e-mail: DMcCoy@ccre.biz

Let me know if you need help with Commercial Real Estate.  I am a licensed Real Estate Broker in Kentucky and Indiana and I specialize in Commercial Property.  I handle Office, Industrial, Commercial Land, Investment, and Retail properties.   I work with Landlords, Tenants, Sellers, Buyers, and Investors.     Heck, I can even set you up with some help from a residential realtor if you need it.  Give me a call.  I would love to help.

New Adventures

I have mentioned a couple of times that I am declaring 2013 to be the Year of Prosperity, which is all well and good but one might legitimately ask how I expect that to play out.   At the end of 2012, I sat down to think about how I wanted to direct my life and career.   

I thought about things that I really loved and things that I really wanted to accomplish then looked at the talents I had in my tool box to see how I might make that happen. 

• I love languages and cultures. 
• I love travel and exploring.  
• I love interacting with other people.  
• I have an extensive background in Commercial Real Estate. 
• I am conversant in Spanish.  
• I have traveled a lot through out the Americas.     

From that, I decided that I needed to explore some new areas.  The obvious first step is to look into International Real Estate.    To be honest, I am not really sure how people make a living practicing international real estate but I intend to find out.    My hope is that I will be able to incorporate a practice of International Real Estate into my practice of Commercial Real Estate.  

Step One - I am going to Costa Rica this year for a conference on International Real Estate where I will get to network with some practitioners and hopefully get some insights.   Also, I will complete the National Association of Realtors courses for a designation of Certified International Property Specialist.     After that, I will evaluate whether this is something that looks promising.  If so, I am considering going for a visit to Brazil later in the year.    

In any event, it is looking like 2013 is going to be an exciting year.   

When I get back, I will share some of my insights.     

Thanks so much for reading!  Hope you have a great day.

David

David W. McCoy
Associate Broker
Commonwealth Commercial Real Estate
10444 Bluegrass Pkwy
Louisville, KY  40299

ofc: (502) 379-6005
cel: (502) 905-5274
e-mail:  DMcCoy@ccre.biz

Let me know if you would like some help with Commercial Real Estate.  I am a licensed Real Estate Broker in Kentucky and Indiana and I specialize in Commercial Real Estate.  I handle Office, Industrial, Commercial Land, Investment and Retail properties.   I work with Sellers, Buyers, Landlords and Tenants.   Heck, I can even find you some help with Residential Real Estate if you need it.   

Another Commercial Real EstateTax Trick

Seems like there is always more to learn.  I attended a conference on Monday and learned a new accounting trick for commercial real estate.   There is a procedure known a Cost Segregation which can allow you to reallocate some of the cost of the building in a way that can allow you to accelerate the depreciation.

Actually this trick has been around for a while but it is not widely known.   It is the result of a decision regarding HCA from I believe 1997.     The IRS then clarified the decision with a ruling in 2004 that specified what was necessary and acceptable to make these determinations.    Until this time, it was only practical for very expensive real estate transactions.  

Bottom line here is that this can lead to big tax savings.   

If you want to know more about Cost Segregation or other Commercial Real Estate issues, give me a call.   I specialize in Commercial Real Estate and handle Office, Industrial, Retail, Land and Investment properties.   I work with Landlords, Tenants, Buyers, Sellers and Investors.    

Have a great day!

David

David W. McCoy
Associate Broker
Commonwealth Commercial Real Estate
10444 Bluegrass Pkwy
Louisville, KY  40299

dmccoy@ccre.biz
Ofc: (502) 379-6005
Cel: (502) 905-5274

New Industrial Listing in Bullitt Co - 3601 Coral Ridge Rd

3601 Coral Ridge Rd

Newly Listed Industrial Property in Bullitt County

I have a new listing in Bullitt County close to I-65 in Brooks, KY.    Details follow -

Approximately 2 acres zoned Light Industrial on Coral Ridge Rd approximately 1/2 mile from I-65.   Property has a small approximately 3,300 square foot office structure and a small approximately 5,000 square foot warehouse structure. 

Property available for sale. Priced at $350,000.

If you know of someone who might have an interest, please give me a call!  

Thanks so much everyone and have a great day!

David

David W. McCoy

Associate Broker

Commonwealth Commercial Real Estate

10444 Bluegrass Pkwy

Louisville, KY  40299

ofc: (502) 379-6005

cel: (502) 905-5274

e-mail: DMcCoy@ccre.biz

disclaimer:  Information presented is based upon sources deemed to be reliable although Commonwealth Commercial Real Estate, its brokers, agents and employees cannot warrant this information.  Offerings on this property are subject to change or withdrawal at any time without notice.   Confirmation of this information is the responsibility of the purchaser in the inspection process.

Could it be that the Recession is Over?

Earlier this week, I told some buddies that it has been so long since I saw a crane, I wasn't sure I could recognize one.   One responded, "What's a crane?"  The other told him, "It's a bird with long legs that lives near marshes."

We've been burned before thinking that the Great Recession was over.   Technically, I guess from its true economic definition, the recession has been over for nearly 3 years but this has been a recession without a recovery, so far.  

Perhaps, in Louisville at least, the recovery we have been waiting for is finally here.   We have had several indicators -

• Town Center retail center - known by most as the home of Tinseltown sold in late 2011 for close to twice as much as its purchase price just a few years before
• Cabela's, a large outdoor retailer, announced plans to build a new store by Lowes and Costco at Brownsboro Crossing. 
• Central Station retail center, close to Churchill Downs recently sold to an out of state investor
• River Ridge, in Jeffersonville, Indiana, has a new 1,000,000 SF warehouse being built by a so far undisclosed company
• Bullitt County has another still undisclosed company presently looking for land to build another 1,000,000 SF warehouse.
• The new North Hurstboure Parkway Class A Office building built by Faulkner, the only spec Class A Office building I can think of for the last several years, is nearly completely leased after only being officially open for a few weeks.

In addition, there are less concrete indicators -

• We have been getting inquiries from businesses that are suppliers to some of our larger employers, saying that they need more space to gear up for new contracts and increased activity.
• Whereas last year I would sometimes ask friends to call my phone to be sure that it was working, now our phones are ringing again.
• Several companies are now at least looking at new space.  Much of this is taking advantage of better lease rates while they are still down and long term leases are expiring.   Still, there is more activity than there has been in quite a while. 

As I mentioned in the outset, we have been burned before, so I won't be buying a new car right away.   Still, things are looking more positive than they have in quite a while.   

Hope you have a great day!

BTW - If you need some Real Estate help, give me a call!   I specialize in commercial real estate and work with Buyers, Sellers, Landlords, Tenants and Investors.  I handle Office, Industrial, Land, Retail and Investment properties.  Heck I can even set you up with help for residential properties. 

ALSO - I am sure that my managing broker would appreciate me clarifying that the views expressed here are my own and do not necessarily reflect those of Commonwealth Commercial Real Estate, its brokers, agents, or employees, other than me, of course.    Should you like to make a comment or offer another point of view, you may feel free to do so in the comments or you may contact me directly.   You should not feel free however to make any comments which are inappropriate or offensive.   Should I see any such comments, I will exercise my right to delete them.

David

David W. McCoy
Associate Broker
Commonwealth Commercial Real Estate
10444 Bluegrass Pkwy
Louisville, KY  40299

ofc: (502) 379-6005
cel: (502) 905-5274
e-mail: DMcCoy@ccre.biz

Louisville 2011 Industrial Review

I'm continuing my review of Louisville Commercial Real Estate for 2011. Today, I am looking at the Industrial Market. Here is what I found -

The Numbers -

According to KCREA (Kentucky Commercial Real Estate Alliance), the Louisville metro area had 127 Leases for approximately 1,127,191 SF of Industrial space. The median lease space was 3924 SF while the average lease was for 41,748 SF. The largest Industrial Lease reported for 2011 was 162,000 SF while the smallest lease reported was 475 SF.

Regarding Industrial Sales, KCREA reported 38 Industrial Buildings sold in 2011 consisting of 1,635,993 SF selling for $37,115,500. The median building size was 24,960 SF while the median transaction size was $487,000. The average selling price per square foot was $22.96 and the average building size was 42,535. (note: if you are checking my math, to get this figure, I had to make some adjustments because some transactions did not disclose the square footage of the property or had invalid numbers entered.)

The largest Industrial sales transaction was a 248,400 SF Building in Louisville which sold for $7,760,000.   The smallest unit sold was a 2,400 SF unit which sold for $130,000.

What this says to me -

At 127 leases and 38 sales for the year, we are seeing about 2.4 leases and 0.73 sales per week.    Half of the leases are for less than 3,924 SF.  When the average space leased exceeds the median by such a large margin, this screams that there are very few large transactions in the market place.  The vast majority of the transactions are very small spaces.   While information on the term of the leases is not provided in the KCREA stats, conversation with other brokers leads me to believe that we are continuing to have shorter term leases. 

For Industrial Sales, the activity remains somewhat light. Things being sold are tending to be smaller properties at lower price points. Like the leasing, it is interesting to note that the top 5 sales transactions amounted to more than half of the total dollar volume of the reported sales.  

Recommendations -

Louisville has had a fair amount of good economic news in 2011, with expansions planned at Ford and GE, among others. As these lines begin to come on-line and as suppliers and other companies also begin to expand, it looks as though things in Louisville will continue to improve.

My recommendations remain the same. Like the Office, I would say that things are looking better - number of calls and showing are up and unemployment is improving.  Also, while I cannot quantify this, I am beginning to see a willingness of companies to consider longer terms in their leasing.  

We continue to have a lot of inventory and downward pressure on pricing. Successful Landlords and Sellers will keep their properties in top condition and price them competitively.

Notes, Disclaimers and Such -

BTW - If you would like me to evaluate your particular property, give me a call. Also if you need any help on any real estate needs, I would love to help. I am licensed in Kentucky and Indiana and specialize in Commercial Real Estate. I work with Buyers, Sellers, Landlords, Tenants and Investors. I handle Office, Industrial, Land, Retail and Investment properties. Heck, I can even set you up if you need help with residential property.

ALSO - I am sure that my broker would appreciate me clarifying that the views here are my own and do not necessarily represent those of Commonwealth Commercial Real Estate, its brokers, agents or employees (other than me, of course) If you would like to make a comment or offer another opinion, you may feel free to do so in the comments sections. What you should not feel free to do though is make comments which are inappropriate or offensive. Should I see any such comments, I will delete them.

Finally - The information gathered for this analysis comes from KCREA (Kentucky Commercial Real Estate Alliance). This information reflects the activity of the members and participants of KCREA and therefore should not be considered a complete census of commercial activity. It is also dependent on the individual brokers to enter and maintain their information. As such it is subject to some error. Never-the-less, it presents a picture of the commercial real estate activity and I believe it is useful for review and analysis.

Let me know if you have any questions or if I can be of some help. Thanks for reading. Hope you have a good day.

David

David W. McCoy
Associate Broker
Commonwealth Commercial Real Estate
10444 Bluegrass Pkwy
Louisville, KY 40299

ofc: (502) 379-6005
cel: (502) 905-5274
e-mail: DMcCoy@ccre.biz

Price Reduced on Southern Indiana Car Shop

1414 Spring Street -  Jeffersonville, IN

I am looking for some help finding a buyer for a property in Southern Indiana adjacent to Clark Memorial Hosptial in Jeffersonville.  

This property, formerly Nationwide Auto Restoration, has approximately 7,700  square feet with nearly 4,000 additional square feet of storage in the basement.   There is an office on Spring Street and an industrial shop with 3 drive in doors in the rear.   It would be a great spot for a small auto shop or contractor's office and it is easily accessible from I-65.   There is parking in front and in the rear. 

The industrial part of the building has 16 foot ceilings and has 2 Ingersol Rand compressors running in tandem as well as air lines through out.  The building has heavy power and there is a paint booth which can stay with the building. 

The building was originally priced at $320,000.   The owner is anxious to sell and has now lowered the asking price to $234,000.

If you know of anyone who might have an interest, give me a call.

Thanks for your help!   Have a great day.

David

David W. McCoy
Associate Broker
Commonwealth Commercial Real Estate
10444 Bluegrass Pkwy
Louisville, KY  40299

ofc: (502) 379-6005
cel: (502) 905-5274
mailto:DMcCoy@ccre.biz
www.ccre.biz

Bluegrass Industrial Park Activity

I have been surprised at how many people were interested in my post on Bluegrass Industrial Park from last April.    I am reviewing a listing I have in the park and decided to update the information.

Sales Data

Currently (as of 12/13/2011) there are 26 Industrial Properties listed for sale on KCREA (Kentucky Commercial Real Estate Alliance) which is about the same inventory level as last April.   Three Industrial properties in the Park have sold in the six month period since then (period of 5/1/2011 to 11/30/2011).   This included one 7200 SF facility, a 37,175 warehouse distribution building, and a 61,164 SF building.   

Leasing Data

As of 12/13/2011, there are 64 Industrial properties for Lease in Bluegrass Industrial Park.   This is a pretty good sized drop in Inventory from the 79 properties which were listed last April.    In the last 6 months, KCREA reported 36 leases signed.   Only 5 of these leases exceeded 10,000 SF.  

Analysis

It has seemed as though the market in Bluegrass has been improving and this snap shot of the Park would seem to confirm this.   Three sales in six months compared to three sales in eighteen months is a marked improvement.   At this rate, we would expect the time to sell the existing properties to be about 4 years.   Of course, this is still a long time but it is a big improvement over the 12 year expected rate from 6 months ago.    Still with only three data points, we need to be cautious in our optimism.   Certainly this is good news but thee sales does not necessarily indicate a trend.

Leasing also seems to have improved.   A decrease in the number of available properties and increase in the number of leases both bode well.    With an inventory of 64 properties for lease and 36 leases in 6 months, we might expect the existing inventory to be leased in about 11 months.   Once again though, when we look a little closer, we see that only 5 of these lease were for properties larger than 10,000 SF.   If we arbitrarily divide the market at the 10,000 SF line, we see things a little differently.  

• Below 10,000 SF, we see an inventory level of 45 property with 31 properties leased in the last 6 months.   At this rate, we would expect the inventory of properties under 10,000 SF to lease in about 7 and 1/2 months.  
• Above 10,000 SF, we see an inventory level of 19 properties with 5 properties leasing in the last six months.   At this rate, we would expet the inventory of properties above 10,000 SF to lease in about about 23 months, which is about half of the time we  would have expected last April.

Conclusion

I think that it is a little too soon to call the outlook rosy but things certainly look much better than they did 6 months ago.   Louisville has had some good economic news and the economy for the country has been improving.   I think that this is reflected in this activity.   What is harder to measure is business outlook.    On the street, I am still hearing a lot of worry among business owners.   A lot of deals are continuing to fall apart in the current economic climate and a lot of business owners are still trying to plan cautiously, asking for steep discounts and for short term leases.  Although things look better, I still recommend that Landlord keep their properties in top condition and keep them priced competitively.

Have a great day, everyone and good luck with your holiday shopping!  

Notes, Disclaimers and Other Info -

The information in this analysis came from the Kentucky Commercial Real Estate Alliance  (KCREA).   This information is maintained individually by the subscribing Commercial brokers and is not necessarily an accurate census of the activity.   It is only the information provided by the cooperating brokers and its accuracy is dependent on the individual brokers efforts to maintain their information.   Never-the-less, I think that it is a good indicator of the market at large.

ALSO, I am sure that my broker would appreciate me clarifying that the views provided here are my own and do not necessarily represent the views or opinions of Commonwealth Commercial Real Estate, its brokers, agents or employees (other than me of course)   You are welcome to present other opinions in the comments if you so desire.   HOWEVER, you are not welcome to make inappropriate or hateful comments.   Should I see any such comments, I will exercise my right to delete them.

AND FINALLY - If you know someone who would like some help with real estate, give me a call.  I work with Tenants, Landlords, Buyers, Sellers, and Investors.   I handle Office, Industrial, Land, Investment and Retail properties.   Heck, I can even hook you up with someone to help you with your residential real estate needs.    Give me a call, I would love to hear from you.

Thanks for reading! 

David

David W. McCoy
Associate Broker
Commonwealth Commercial Real Estate
10444 Bluegrass Pkwy
Louisville, KY  40299

www.ccre.biz

NICE 21,000 SF Louisville Industrial Building for Lease - Property Promotion for the Day

2520 Ridgemar Court

My Property promotion for the day -

Looking for someone needing a nice industrial building to lease.   This is a very nice warehouse building with a meticulous owner who has kept it very well maintained.    It is available for lease immediately.     Let me know if you know someone who may have an interest.

Features of this building include -

• 21,000 + Square Foot Industrial building
• Approximately 4,000 Square Feet of Office
• 1 drive in door and 2 dock doors
• Ceiling height of 18 to 22 feet
• Located in Bluegrass Industrial Park, home to approximately 850 businesses and employing approximately 38,000
• Easy access to two Interstate interchanges on I-64 (I-64 @ Hurstbourne Pkwy and I-64 @ Blankenbaker Pkwy)

This is a very nice and very clean industrial building and did I mention that it is available immediately?    The owner would love to get a new tenant.  Please let me know if you know of anyone looking for about 21,000 SF of industrial space in the Louisville area.  

Thanks so much!  Have a great day.

BTW - If you need help with commercial real estate, give me a call!  I work with Buyers, Sellers, Landlords, Tenants and Investors.  I handle Office, Industrial, Land, Investment and Retail properties.  Heck, I can even set you up with help on residential real estate if you need it. 

David

David W. McCoy
Associate Broker
Commonwealth Commercial Real Estate
10444 Bluegrass Pkwy
Louisville, KY  40299

Industrial Building in Bluegrass Industrial Park for Lease

Very nice stand alone 21,000+ SF Industrial Building for lease at 2520 Ridgemar Ct, in Bluegrass Industrial Park.    Located near the intersection of Watterson Trail and Plantside Drive, it is convenient to two (2) I-64 interchanges.   

If you know, anyone looking for a nice industrial building, have them contact me for more information.  

Thanks!  Have a great day and a great Derby Week.

David

David W. McCoy
Associate Broker
Commonwealth Commercial Real Estate
10444 Bluegrass Parkway
Louisville, KY  40299

Bluegrass Industrial Park

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).    

Sales Data

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.

Leasing Data

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. 

Analysis

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.   

Conclusion

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

David W. McCoy
Associate Broker
Commonwealth Commercial Real Estate
10444 Bluegrass Pkwy
Louisville, KY  40299

Jeffersonville Indiana Auto Shop Available

1414 Spring Street, Jeffersonville, IN

If you know of someone looking for a place for a car shop, this property might be of interest.  Some of you may remember this as the former Nationwide Auto Restoration.  This property is now for sale at $320,000. 

Pertinent information follows:

• Adjacent to Clark Memorial Hospital campus in Jeffersonville, Indiana
• Approximately 7706 square feet with an additional 3832 square feet of basement storage
• Easy access to I-65
• Industrial portion has 3 separate drive-in doors
• Zoned C-2 & IS
• (2) Ingersoll Rand air compressors running in tandem
• Air lines throughout the building
• Paint booth and car lift to remain with building
• 16’ clear height
• Heavy Power
• Owner willing to remain as a tenant for industrial portion of building if desired

Let me know if you or someone you know would like to see this property.   Contact me for more information or to schedule a tour.   Thanks for spreading the word!   Have a great day all.

David 

David W. McCoy

Associate Broker 

Commonwealth Commercial Real Estate

10444 Bluegrass Parkway

Louisville, KY  40299 

ofc: 502.379.6005

fax: 502.379.6225

cel: 502.905.5274

PS - I am a licensed real estate broker in Kentucky and Indiana.   I specialize in Commercial Real Estate.  I handle Sales, Leasing and Tenant / Buyer Representation and work with Land, Office, Industrial, Investment and Retail properties.    Let me know if I can be of help with your Commercial Real Estate Needs