| Industrial Outlook 2009 |
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At Bender Commercial, our research mission each year is to provide detailed information on each of the market segments and identify market trends. Ultimately, this information facilitates our clients in making the best educated real estate decisions.
In 2009, Bender Commercial proudly celebrates its 12th year of providing market data for the Sioux Falls region. As the first firm to publish a report of its kind, starting in 1997, we are pleased to present the following information about the Industrial Market. We will be releasing information on the other market segments over the next few weeks.
Industrial Market In 2008, Bender Commercial tracked and researched 694 properties that are categorized as being Industrial. Properties that are considered Industrial and are included in this analysis are those that are used for manufacturing, warehousing, transportation, distribution and contractor shops. The sample size of 694 is up slightly from the 647 surveyed in 2007. The increase in size is due in part by an expansion of the market area researched. New construction added to this number as well.
The method for analyzing the market amounts to determining what the total vacancy at the end of the year (2008) and comparing that amount to the previous year's number. Newly constructed buildings are added in and so are existing buildings that have come on the market during that same year. Our research indicated the following:
Industrial Vacancy on 1/31/2008: 494,695 sq. ft.
Total Space available in 2008: 1,541,548 sq. ft.
Industrial vacancy 1/31/2009: 446,162 sq. ft.
3.25% Vacancy in Industrial Market
In summary, the vacancy square footage dropped from 494,695 sq. ft. on January 1, 2008 to 446,162 sq. ft. on January 1, 2009, a drop of 9.81%. The vacancy rate decreased from 3.76% on January 1, 2008 to just 3.25% by January 1,2009.
There was one other decrease worth noting. The new construction square footage decreased from 456,807 sq. ft. in 2007 to just 362,772 sq. ft. in 2009. That was a drop of 20% for the one year period.
The highlight of the survey is that there was a Net Absorption of just over 1,000,000 sq. ft. which equates to 3,000 square feet per day. At that rate, the 446,162 sq. ft. of vacancy could be absorbed in less than 6 MONTHS. That is, if those properties can be used for the tenant/buyer's intended use.
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