THE GRAHAM REPORT M ARK E T S URV E Y | H U N TSV ILLE
2021
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Graham Report 2021 Industrial Overview • Jetplex • North/Central • Chase • Greenbrier Office Overview • Central Business District • Jetplex/Madison • Cummings Research Park Map • Cummings Research Park Graham Services Graham Transactions & Availabilities About Graham
GRAHAM REPORT 2021 HUNTSVILLE, ALABAMA
The Huntsville commercial real estate market was resilient throughout the COVID-19 outbreak of 2020. While all sectors were immediately impacted by the rolling and confusing shutdowns, the market has stabilized and recovered quite well in a short period of time. The number of employees working from home increased dramatically in 2020 and this change might have lasting effects as companies re-think their office operations. The Huntsville office market still managed to net positive absorption of 972,501 sf and a vacancy rate of 9.26%, the lowest in several years. Most of the positive activity has taken place at the Redstone Gateway project. The increase in e-commerce distribution during the pandemic accelerated the industrial sector as more projects, including a 1.1 million sf Amazon Distribution Center, were announced to the area. The vacancy rate (4.98%) is at the lowest level in more than a decade. The industrial sector has seen 2.5 million sf of positive absorption in the last two years and construction is booming with greater than one-million sf of new, speculative space under construction to help meet the demands of a growing industrial base. Land prices continue to escalate across all sectors. Prices in the CBD remain above $50 psf as the area remains a prime spot for renovation and/or new construction. Industrial land prices have increased dramatically in the Greenbrier area, catching up with the spike in activity. Retail and multi-family land prices remain strong.
INDUSTRIAL OVERVIEW
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Graham & Co | 2021 GRAHAM REPORT | HUNTSVILLE, AL
HUNTSVILLE INDUSTRIAL OVERVIEW Vacancy for Huntsville’s industrial market decreased in 2020 to 4.98%, marking the lowest rate the Huntsville Industrial market has seen since 2008. Vacancy is still above the national rate of 4.60%. Average rental rates nationwide increased 6.3% to $8.24 per sf while the Huntsville market also saw an increase in rents. Asking rates for new Class-A industrial office are close to $7.00 per sf. Low supply and high costs of new construction will continue to drive rents upward. New construction for industrial buildings increased sharply to 264 million sf, up 9.55% over 2019. More than 1,000,000 sf of non-user owned industrial products were announced or under construction in the Huntsville market. The Huntsville market had positive absorption of 1.2 million sf in 2020, which equates to a net positive absorption of three million sf in the last two years. Nationwide absorption was 223 million sf with 104 million sf absorbed in the 4th quarter. Nationally, 48 transactions were completed for facilities of one million sf or more
Land prices for industrial projects continue to increase, especially in the Greenbrier and Spacegate areas. Land is now selling for more than $50k per acre in most submarkets. The investment market for industrial product was again one of the top performing sectors with an average national cap rate of 6.25%. Investors are searching beyond the large, Tier I and II cities for investment deals and that has lowered cap rates in Tier III cites like Huntsville. In fact, there were a couple of industrial trades in the Huntsville market in 2020 that were sold for below a 7% cap. The outlook remains bullish for the industrial sector as finance rates remain low and demand for the e-commerce product remains high.
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ANNOUNCEMENTS OF NOTE IN 2020: The Covid-19 Pandemic increased the demand and needs for e-commerce companies and buildings. The expected industrial absorption for 2022 is 333 million sf which is triple the absorption now. The Huntsville market, coupled with the growth around the Mazda Toyota plant, is now beginning to feel the impact of these changes. •
More than 1.2 million sf of speculative industrial space was announced or under construction, with greater than 750k sf in the Greenbrier submarket.
•
Prices have increased for new construction which will drive rental rates up.
•
Huntsville has many new developers and owners in the market now.
INDUSTRIAL ABSORPTION
2020: 1,272,271 FEET SQUARE
SQUARE FEET
2,000,000 1,500,000
VACANCY RATES
327,729
SQUARE FEET
1,000,000
MARKET
SINGLE TENANT
MULTI TENANT
Jetplex
11.31%
2.32%
8.39%
North|Central
0.73%
0.07%
0.17%
Chase
6.63%
1.89%
6.48%
Greenbrier
0%
0%
0%
OVERALL
500,000 0 -500,000
2016
MARKET
2017
2018
SF
2019
2020
VACANT SF
2020
2019
2018
2017
2016
Single Tenant
20,922,702 SF
996,203 SF
5.70%
5%
7.87%
4.72%
4.70%
Multi-Tenant
4,876,575 SF
445,430 SF
1.89%
9.40%
6.87%
10.20%
14.28%
25,799,277 SF
1,441,633 SF
4.98%
5.84%
7.64%
5.97%
6.86%
Total Industrial
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Graham & Co | 2021 GRAHAM REPORT | HUNTSVILLE, AL
JETPLEX INDUSTRIAL MARKET
Jetplex Center
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[ 11.2 MILLION SF TOTAL ] OVERALL VACANCY 8.39% SINGLE TENANT 11.21% MULTI-TENANT 2.32% Recent developments in the Jetplex Industrial Market: •
The 550,000 sf former Navistar plant is now 100% leased. The building was vacated in 2017 and sold to an out of town investor.
•
Remington exited their 796,000 sf building on Wall Triana Hightway. The 200 year old firearm manufacturing company declared bankruptcy and vacated buildings in Huntsville, AL and Madison, North Carolina.
•
Shamrock Investors began construction on a 116,000 sf building on James Record Road. The building offers 32-foot clear ceilings and is located 1.5 miles from I-565.
Major area tenants include: Navistar, Kohler, SES, & Georgia Pacific.
Vacancy for Jetplex Industrial Park increased slightly in 2020 to 8.39%, up from the previous year’s 7.10% rate. Vacancy for the Jetplex area remains low with the largest vacancy found in the former 796k sf Remington plant. Jetplex Industrial Park is Huntsville’s largest industrial base, representing 43% of the Huntsville industrial market, and comprised of several smaller markets that surround Huntsville International Airport and the Intermodal Center. Jetplex Industrial Park contains 1,470 acres and offers Foreign Trade Zone #83, U.S. Customs Port of Entry and interstate access via I-565. Jetplex South Industrial Park contains 1,400 acres and is located just south of Jetplex Industrial Park. Lowe Industrial Park is a 900-acre park originally designed to encompass the growth of Intergraph Corporation.
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Graham & Co | 2021 GRAHAM REPORT | HUNTSVILLE, AL
NORTH/CENTRAL INDUSTRIAL MARKET
Facebook Huntsville Data Center
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[ 5.37 MILLION SF TOTAL ] OVERALL VACANCY 0.17% SINGLE TENANT 0.73% MULTI-TENANT 0.07% Recent developments in the North/Central Industrial Market:
Vacancy for the North/Central Huntsville industrial market fell sharply to 0.17% in 2020, down from the 7.20% posted in 2019. Several large blocks of space were leased, and a couple of buildings that were under construction were completed and occupied. The North/Central Huntsville industrial market is comprised of 5.37 million sf and represents 21% of the total Huntsville industrial market. North Huntsville Industrial Park added several large buildings to its inventory, including the 900,000 sf Facebook data center and the 136,000 sf Aerojet facility. The area provides good access to North Alabama and Southern Tennessee. The tenant mix in the area consists of companies in the automobile industry, defense, and local and national service companies.
•
The 300 Diamond Drive building was leased by Kohler and SAIC. The building is 300,000 sf and is now 100% leased.
•
Blue Origin opened its new 350,000 sf rocket engine manufacturing plant in Cummings Research Park West. The building was built to provide the main engines for the Vulcan Centaur that the United Launch Alliance is building in Decatur, Alabama.
•
Yulista occupied space at its new 126,000 sf facility at Redstone Gateway. The new building will be used for warehouse and distribution, including some space for kitting operations.
Major area tenants include: Toyota, Aerojet Rocketdyne, Blue Origin, and Dynetics.
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Graham & Co | 2021 GRAHAM REPORT | HUNTSVILLE, AL
CHASE INDUSTRIAL MARKET
120, 130, and 150 Vintage Drive
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[ 5.05 MILLION SF TOTAL ] OVERALL VACANCY 6.48% SINGLE TENANT 6.63% MULTI-TENANT 0% Recent developments in the Chase Industrial Park: •
The 1.3 million sf former Cinram plant on Moores Mill Road was put on the market for $43,000,000 or $31.57 per sf. The building sits on 161 acres, is fully air conditioned and has more than 600k sf of 42-foot clear warehouse space.
•
130 Vintage Drive building, a 277,883 sf industrial building that was formerly part of the Qualitest Campus, sold for $19,900,000 or a 6.75% cap rate. The building is currently leased by Leidos.
Major area tenants include: J and J South Central, Cinram, PPG Industries, Mitchell Plastics, Hart & Cooley, Kommerling, and Schwarze Industries.
Vacancy in Chase Industrial Park held steady at 6.48% in 2020. A large block of space, the 1.3 million sf former Cinram building, will be added to the market in August of 2021; vacancy numbers are expected to increase drastically by EOY 2021. Chase represents 22% of the entire Huntsville industrial market and was developed by the Madison County Commission. Chase Industrial Park is comprised mostly of single tenant employers. Situated on 1,700 acres in northeast Huntsville, only 50 acres remain available for new development. Products manufactured in the park include automobile supplies, plastic products, and home building supplies.
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Graham & Co | 2021 GRAHAM REPORT | HUNTSVILLE, AL
GREENBRIER INDUSTRIAL MARKET
Mazda/Toyota Manufacturing USA Plant.
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[ 4.16 MILLION SF TOTAL ] OVERALL VACANCY 0% SINGLE TENANT 0% MULTI-TENANT 0% Recent developments in the Greenbrier Industrial Park: • Hollingsworth Companies held a groundbreaking for a new 404,738 sf industrial building in SouthPoint Business Park. This is the 11th building developed in the park which, once completed, will have more than 1.9 million sf of industrial space. •
The TPA Group announced plans to build a 213,000 sf building on Mooresville Road. The building is estimated for completion in September and will offer 32' clear height and excess land for outside storage or truck parking.
•
Intersect Development Group closed on a 47-acre tract of land on which it will build a planned 400,000 sf industrial park. The first building will be 144,500 sf and construction is expected to be completed in 2021.
Major area tenants include: GE Aviation, Target, Fed Ex.
SEGERS ROAD
OLD HWY 20
RIE R
GARRETT ROAD
G REENB
Vacancy is currently at 0%. Several new construction projects, including the Mazda Toyota plant, will raise the total sf in the area to more than 6 million sf in a couple of years. Most companies located in the area are generally in the automotive, services, and transportation industries.
MOORSVILLE ROAD
The Greenbrier area is in an ideal location for companies that have logistic and transportation needs in the North Alabama and Southeastern markets. Interstate I-65 and I-565 intersect near Greenbrier and serve as a key access point for companies in the automotive, services and defense industries. Rail access is available in the area.
P KWY
BIBB GARRETT ROAD SWANCOTT ROAD
OFFICE OVERVIEW
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Graham & Co | 2021 GRAHAM REPORT | HUNTSVILLE, AL
HUNTSVILLE OFFICE OVERVIEW Vacancy rates for the Huntsville office market fell slightly in 2020 to 9.26%, down from the prior year’s 10.40%. Vacancy has fallen now for five straight years from the 19.31% registered in 2015. Several new office construction projects are underway in the CRP submarket as part of a consolidation effort for defense related companies. The office market had positive absorption of 972,501 sf in 2020. The Huntsville market has experienced more than 2.6 million sf of positive absorption since 2017. Most of the newly leased space is located in Redstone Gateway and Cummings Research Park (CRP). The Redstone Gateway project has grown to more than 1.3 million sf of office, industrial ,and retail space. Vacancies were down in the Jetplex/ Madison and CRP submarkets, but up in the Central Business District (CBD). CRP is the area’s largest submarket, and vacancy fell to 6.99% from the prior year’s rate of 8.14%. The CBD vacancy increased to 14.5% while the Jetplex/ Madison market decreased to 14.06%. Most vacancies in all three submarkets are located in older, Class-C buildings that might be candidates for a redevelopment project. New construction in Huntsville has been active in all sectors, especially in the Redstone Gateway development. A couple of new office building projects
were announced for the CBD, and several redevelopment projects are underway that include a large office component. Rental rates have increased in the Huntsville market for Class-A and B space. Class-A space now leases in the low to mid $20.00 psf range (full service) while Class-B space generally leases in the $18.50 psf to low $20.00 psf range. Annual rent increases average 2% to 3% and free rent is not being offered as much as in the past.
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OFFICE ABSORPTION
2020: 973,000 SQUARE
FEET
SQUARE FEET
VACANCY RATES
892,000
SQUARE FEET
1,000,000 800,000 600,000 400,000
SINGLE TENANT
MARKET
MULTI TENANT
OVERALL
Cummings Research Park
4.25%
13.13%
6.99%
Jetplex/ Madison
0%
17.13%
14.06%
Central Business District
7.30%
15.29%
14.55%
200,000 0 -200,000
2016
MARKET
2017
2018 SF
2019
2020
VACANT SF
2020
2019
2018
2017
2016
Single Tenant
9,825,427 SF
414,664 SF
4.22%
6.31%
4.06%
6.32%
7.87%
Multi-Tenant
9,473,794 SF
1,372,191 SF
14.48%
13.97%
16.38%
17.53%
24.39%
19,299,221 SF
1,786,855 SF
9.26%
10.40%
10.64%
12.26%
16.63%
Total Office
Office Announcements of Note in 2020 Redstone Arsenal was selected as the preferred headquarters for the new Space Command program. Huntsville was chosen over six other sites that compared infrastructure, community support, and costs. The decision is pending results from an environmental impact analysis. The project would employ 1,400 people once fully operational. Redstone Arsenal employs more than 40,000 employees to serve 65 various federal agencies on the base. The Redstone Gateway project has grown dramatically during the last three years and now has more than 1.3 million sf of office, warehouse, and retail space on its campus. The project has fourteen properties and is 100% leased at this time. The average age of the buildings is five years old. Three new building projects are under development that will offer 156k sf of space once completed. The tenant mix includes Boeing, Yulista, DRS, Cummings Aerospace, and Spaces.
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Graham & Co | 2021 GRAHAM REPORT | HUNTSVILLE, AL
CENTRAL BUSINESS DISTRICT OFFICE MARKET
Redstone Federal Credit Union
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[ 3.66 MILLION SF TOTAL ] OVERALL VACANCY 14.55% SINGLE TENANT 7.30% MULTI-TENANT 15.29% Recent developments in the Central Business District Office Market: •
•
•
•
The Huntsville downtown/central business district (CBD) office market consists of approximately three and half million sf and is dominated by the business and health sectors including law firms, banking, accounting, and real estate companies. City, county, and government employees also make the CBD their home. Vacancy in the CBD increased slightly to 14.55%, up from the previous year’s 14.13% rate. Construction has been active with four new hotels, two multi-family projects, two new office buildings, and a large parking deck slated to be complete by 2022. The need for additional Class-A office space is beginning to be met with a couple of new office building offerings. Land prices continue to appreciate with recent sales over $50 psf.
The 67,000 sf Redstone Federal Credit Union building on Davis Circle completed construction in late 2020. The building will be home to Redstone’s mortgage, insurance, and investment services business units. The two Wells Fargo buildings located on Franklin Street and Madison Street were sold to a local investment group. Wells Fargo will remain in the office building. The owners will look for a new tenant to backfill the existing branch building. The former Law Library located at 205 Eastside Square sold to a local LLC for $128 per sf. The building is 12,600 sf and features three floors of open office space and a basement. The 220,000 sf Lincoln Mill was purchased by a local team of investors and will undergo a redevelopment project that will include painting, additional parking and lighting, updated elevators, and other tenant specific improvements. The building was originally built in 1900 and was the office to many of the early NASA engineers.
Major area tenants include: Regions Bank, Bryant Bank, The City of Huntsville, BB&T, Lanier Ford Attorneys at Law, Bradley, and Huntsville Hospital.
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Graham & Co | 2021 GRAHAM REPORT | HUNTSVILLE, AL
JETPLEX/MADISON OFFICE MARKET
Toyota Field
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[ 1.70 MILLION SF TOTAL ] OVERALL VACANCY 14.06% SINGLE TENANT 0.00% MULTI-TENANT 17.13% Vacancy for the Jetplex/Madison office market decreased in 2020 to 14.06%, down from the previous year’s 20.15% rate. Vacancy rates in Madison have now dropped five years in a row.
Recent developments in the Jetplex/Madison Office Market: • The multi-use development along Highway 72 has plans for a 350,000 sf medical office building. Retail, multi-family, and residential construction has already begun at the development.
Madison is one of the fastest growing cities in the state of Alabama and the demand for medical and business services remains strong. Many medically related office and financial services buildings have been built in the Madison market in the last three years. Both Crestwood and Huntsville Hospital have a presence in Madison.
•
Development on County Line Road continues to accelerate with a large amount of announced retail transactions and a new 10,000 sf medical building under construction. 12205 County Line Road, a 25,400 sf medical building constructed in 2008 sold for $130 per sf.
Major area tenants include: Palco, Intergraph, Boeing, Huntsville Hospital, and Progress Bank.
ga Pe
Dynetics Dynetics
27 AC 7.61 AC
ive
Jackson Center
HudsonAlpha Main
8.07AC
Columbia High School
4.6 AC 9.3 AC
30 AC
Lake 3
ADTRAN
7.35 AC
35.88 AC
9.3 AC
18.12 AC
rive ath D Bob He
Jan Davis Drive
7.9 AC
Rockwell Collins 6.43 AC
11.35 AC Cubic GATR Technologies
20 AC
6.78 AC
11 AC
6.22 AC
8.7 AC Northrop Grumman 8.64 AC
14 AC
11 AC
8.2 AC
KBRwyle
10.91 AC
Eagle Drive
9.67 AC Technology Service Corporation / MTS
Northrop Grumman
6.49 AC
Raytheon Company
L3 / Summit 7 9.5 AC
BPI
Catholic High School
Diamond Drive
18 AC
DirecTV
The Bridges
Park West Center
Technology Pointe
Research Park Office Center
CRP Applications Lake 5
CINRAM
Huntsville Hospital
Bridge Street Town Centre
KBRwyle
Quality Circle
Defense Acquisition University
Parsons
CSRA / Trimble / Trident Technologies / DynCorp International / ExoAnalytic Solutions / Booz Allen Hamilton
ERC / Cummings Aerospace
Old Madison Pike
UAH Foundation (Zoned CRP West)
InterFuze
11.1 AC
6.08 AC
AEgis Technologies
7 AC
ASRC Aviagen Federal
11.78 AC Logicore
Lake 4
Decibel
SAIC / FPMI
rive
Synapse Wireless / 6.2 AC Leidos
305 Quality Circle
Highland Office Park
Progress Center
Hampton Inn & Suites Home2 Suites by Hilton
Cabela's
Huntsville Hospital ARSA, P.C. NeXolve / Graham & Co.
Thornton Research Park University of Alabama in Huntsville Foundation Hu
nt
lle svi
Int
565
at ern
ion
ir al A
por
t
U.S. Army Redstone Arsenal NASA Marshall Space Flight Center
Pr Pr
Dynam SRA
Park Place
The Point
Dynetics / Raytheon / Vencore The SI / Telephonics
10.75 AC
8.3 AC
18 AC
12.3 AC
ARC / MDA
Odys sey D
5.21 AC
Bentley
Explorer Boulevard 11.3 AC
Lake 2
Colsa
19.23 AC
6.4 AC
86 AC
Digium, Inc.
18.35 AC
43.92 AC
AeroVironment
~ 50 acres CRP Landmark Site
BAE Systems / Orbital ATK / Lake 1 BWXT
Quantum Research
ADTRAN
6.16 AC
5.91 AC
rive
19.69 AC
AT&T
uin D
Moq
10.76 AC
10 AC
Aerojet Rocketdyne
5.64 AC
9.22 AC
Colonial Center at Lakeside
Davidson 7.19 AC Technologies 7.59 AC
51.95 AC
Garver
12 AC
Gove rnors W est
7.7 AC
9.31 AC
IRS
Dynetics
10.63 AC 635 Discovery Yulista
Di sc ov er
Farrow Road
10 AC
yD riv e
CFDRC / The Smith Family Clinic for Genomic Medicine
7.8 AC
9.6 AC
S3, Inc.
Intrepid
CenturyLink 6 AC SDI / 10.34 AC Sierra Nevada
Dr 5 AC
9.6 AC
Huntsville 5 AC Utilities 3.2 AC Rolls Royce /
5 AC
it h Sm
8.47 AC
9.2 AC
rd va ule o B er lor Exp
6.57 AC
10.6 AC
5 AC
10 AC
15.47 AC
HII
k C. Mar
Future Development
10.75 AC
6.04 AC
Complex
Research Park Boulevard
Dynetics 10.09 AC
8.75 AC
7.97 AC
12.71 AC
Education Network
MTA / Gideon
18 AC
Voyager Way
12.38 AC
Industries
7 AC 6.5 AC Bldg. 2 HII Future Research Bldg. 1 URS / Siemens / i3 / MCR M3 Superior Solutions 11 AC Qualis Bldg. 3 T&W Operations / Discovery Place LSINC / NetWorx Trideum 24 AC 13.26 AC Delta 6 AC Kord Research 5.35 AC 5 AC Technologies
Dynetics
10.64 AC 7.3 AC
9 AC
10.23 AC
26.79 AC
s su
11.92AC
21 AC
Enterpr
Dynetics 14 AC
Dynetics Field
6.75AC
11.96 AC
Geoce
IQ
72 AT Solution / SESI / KLO EADS Corporate Office Park Stratolaunch / Snelling Johnson Controls / Corporate Drive Moog / Red Hat Sigmatech / Faulkner PeopleTec Victory Solutions / Vertiv University Technology Center BRC Social Security Strayer University Lockheed Administration Chugach Baron Martin Services A-P-T Yulista Kratos Defense & 401 Wynn Research / Qualitest Radiance Security Drive SEAC Technologies, Inc. Solutions Research Drive
North Campus Residence Hall
ent
Strata-G Solutions
Bevill Center
University Center/ Exhibit Hall
Roberts Hall/Roberts Recital Hall
Central Campus Amphitheater Residence Hall
Paragon at 511
Nursing Building
Salmon Library
Lockheed Martin
Wilson Hall/ Wilson Theatre Chan Auditorium Business Administrative Building Charger Union Shelby Center for Science & Technology
SWIRLL (Severe Weather Institute Research and Lightning Laboratory) Robert “Bud” Cramer Research Hall Benchmark (NSSTC & NOAA Weather Electronics Forecasting Office)
Willbrook Solutions 4815 Bradford
Teledyne Brown Engineering
Northrop Grumman Technical Micronics Controls
Ares Corp. UAH SMAP
215 Wynn Drive
e gy Driv
lo Techno 106 Wynn Drive
Union Grove Gallery & Meeting Hall
ROC/CAMO Spacehab
103 Wynn Drive
General Dynamics
Advanced Systems Technology (United Technologies)
Student Service Building
nt D ow
ow n
University Fitness Center
Intermodal Parking Facility Public Safety Charger Village Food Court Charger Village I
Engineering Building/ Admissions
Fraternity/ Sorority Row Southeast Campus Housing
Credit Union Optics Building
McDonnell Douglas Auditorium Materials Science Building
Charger Park
Wernher von Braun Research Hall Solar Energy Research
Shelbie King Hall AAR Integrated Technologies
Holmes Avenue
Charger Way
Business Services Building/ Copy Center
Olin B. King Technology Hall
Spragins Hall
ves Dr ive
ue
Lockheed Martin
306 Wynn Drive Amtec
AT&T
More than 50 Years of Success 3,843 acres 11.8 million square feet Almost 300 companies total More than 26,000 employees 13,258 enrolled college students
Av en
Tecvox
Gilmer Drive
Cummings Research Park
BizTech
Ben Graves Drive
es
Sparkman Drive
SPS / MSSI Fire Station #12
KRS, LLC / F1 Solutions 4975 Redstone Bradford Federal Credit Union
mic Concepts /
lm
DESE Research / SENTAR MBDA / Titertek Instruments
Bradford Drive
RFCU SimTech / Aranea Solutions / U.S. Army Corps of Engineers
Ho
Frank Franz Hall
Morton Hall
University Greenway
Avion
Wynn Dri ve
Intuitive Center at Research Center Gleason Research Associates / INTUITIVE / Research Place Pinnacle Solutions Rainbow Daycare Sikorsky Northrop Aircraft Grumman remier Selex Galileo / eschool Hawk Enterprises
Studio 106 Executive Plaza Office Park
Ben Gra
Shearer & Associates
John Wright Drive
TARCOG
OMI
Drive University
ts Hun
Physical Plant Johnson Research Central Receiving WLRH Center & Shipping Radio Propulsion Station Research Lab
vill
e
May 2018
Established in 1962, Cummings Research Park (CRP) is one of the largest and most-respected research parks in the world. Since its inception CRP has grown to become the second-largest science and technology park in the U.S. and fourth-largest in the world.
CRP West Interior Lots
(Lots that do not front Park boulevards, and must be accessed via non-boulevard roads)
CRP, as shown here, encompasses 3,843 acres and includes nearly 12 million square feet of administration, laboratory, research and development, classroom and manufacturing space.
Boulevard Non-Access Lots
Approx. 310 acres of land are available for development in CRP West. In order to stimulate economic development and investment, the price of land per acre in CRP is significantly lower than adjacent property, providing an attractive incentive for new and expanding companies.
Boulevard Access Lots
Land parcels in CRP West range from four acres (minimum) to 18 acres, but may also be reconfigured to meet company requirements. For each parcel, the City of Huntsville will complete basic site preparation including road access, curbing, drainage, telecommunications, and utilities to the site.
Outside of official CRP boundaries
CummingsResearchPark.com
(Lots that have property frontage on boulevards, but are accessed from non-boulevard roads) (Lots that have property frontage on and are directly accessible via boulevards)
Lakeside Lots
Acreage depicted on this map should be confirmed with CRP Director if interested. For more information and undeveloped land prices, contact Erin Koshut at 256.535.2086 or ekoshut@hsvchamber.org Scale in Miles
0
1/4
1/2
3/4
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Graham & Co | 2021 GRAHAM REPORT | HUNTSVILLE, AL
CUMMINGS RESEARCH PARK OFFICE MARKET
Redstone Gateway
27
[ 13.91 MILLION SF TOTAL ] OVERALL VACANCY 6.99% SINGLE TENANT 4.25% MULTI-TENANT 13.13% The Cummings Research Park (CRP) submarket remained steady as vacancy rates decreased to 6.99% down from the previous year’s 8.14%. Multi-tenant vacancy increased to 13.13% while single tenant vacancy fell to 4.25%. Many companies in CRP are defenserelated and depend on the government for the funding of military projects. Many of the companies in CRP have expanded their footprint in the last three years, and money allocated for defense programs has improved. CRP is the largest office market in Huntsville with more than twelve million sf, representing greater than 70% of the total Huntsville office market. Cummings Research Park is the second largest research park in the United States, encompassing 3,843 acres. Only 430 acres remain for future development. The range of companies in the park includes Fortune 500 companies, local entrepreneurial start-ups, biotechnology and defense related firms. Most companies in CRP act in a support role to meet various demands for military installations located on Redstone Arsenal. Redstone is home to the U.S. Army Aviation and Missile Command (AMCOM), the Space and Missile Defense Command, numerous Program Executive Offices (PEO), and major components of the Defense Intelligence Agency and the Missile Defense Agency.
Recent developments in the Jetplex/Madison Office Market: • The plans for the new 8,000 capacity amphitheater development were approved. Construction will begin in 2021 with plans to be opened in 2022. The amphitheater is a key component for the MidCity Development which now includes Topgolf, Dave & Buster’s, REI Co-Op, and the newly announced Trader Joe’s. •
A six-property office portfolio sold for $83 million to an out of town investment group. The portfolio consists of more than one million sf of Class-A and B office space and includes the Northrop Grumman building in CRP and the Regions building in the CBD. The buildings were 97% occupied at the time of the sale.
•
Yulista moved into its new headquarter buildings in Redstone Gateway. The company consolidated multiple office and industrial locations in CRP and Jetplex into more than 364,000 sf of newly built office, R & D, and warehouse space at Redstone Gateway.
•
Construction for the Alabama School of Cyber Technology and Engineering (ASCTE) began at the intersection of Bradford Drive and Wynn Drive. The school will open at Oakwood University in the fall of 2021, then move into the new facility upon completion which is slated for summer of 2022. ASCTE is a statelevel magnet school that will specialize in the integration of cyber technology and engineering.
Major area tenants include: Dynetics, Adtran, Northrop Grumman, Lockheed Martin, and numerous other high-tech companies.
GRAHAM SERVICES
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Graham & Co | 2021 GRAHAM REPORT | HUNTSVILLE, AL
GRAHAM SERVICES
DEVELOPMENT
BROKERAGE
INVESTMENT SALES
Graham & Company has a market-leading office platform with bolstered development capabilities. Graham’s clientcentric philosophy and growth-oriented approach as well as a shared culture of teamwork, integrity, and service position it to offer “best-in-class” real estate services.
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DEVELOPMENT/CONSULTING Graham & Company’s development group assembles and works closely with teams of architects, engineers, and contractors to create both build-to suit as well as speculative developments. Graham’s development group also procures financing, negotiates leases, and establishes property management systems for its development projects. Graham has been involved in the development of industrial properties, office buildings, office/service centers, and office building rehabilitation projects throughout the Southeast.
BROKERAGE Graham & Company’s brokerage division provides sales and leasing services in four key sectors of commercial real estate: office, industrial, land, and investment. Graham agents consistently rank among the best in their prospective markets. However, it’s not the numbers that reflect the Graham way, it’s the ability to examine each deal through the eyes and sensibilities of its clients that separates Graham from the other industry leaders.
INVESTMENT SALES In addition to brokerage and development, Graham & Company offers investment sales services. Our in-house team has the experience and capability to produce quality offering memorandums, actively market assets for sale, source potential investors, and successfully navigate the closing process.
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Graham & Co | 2021 GRAHAM REPORT | HUNTSVILLE, AL
CORPORATE SERVICES
Brokerage
Representing clients in the negotiation, structuring, and execution of leases
Construction Management Consulting, oversight, and project management of various build outs/ construction projects
Build-to-Suit Process
Develop custom properties and facilities to meet our client’s needs
Valuation Services
Broker opinions of value, and other financial models to better help you make wise and advantageous real estate decisions
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Facilities Management
Lease administration, portfolio management, site management, etc.
Real Estate Tax Consulting Negotiating appropriate tax valuations for existing or new properties
Strategic Planning
Developing plans to harmonize strategic business goals with property and facility decisions
Debt Solutions
Leveraging debt relations to negotiate optimal terms for new acquisitions or existing properties
Graham & Company serves corporate and institutional clients by offering a comprehensive platform of real estate services across geographic locations and property types.
GRAHAM TRANSACTIONS & AVAILABILITIES
36
Graham & Co | 2021 GRAHAM REPORT | HUNTSVILLE, AL
GRAHAM TRANSACTIONS
SOLD
LEASED
2308 Meridian Street Huntsville, AL 160,000 SF Graham represented the buyer in purchasing this multi-building storage warehouse facility.
130 Vintage Drive Huntsville, AL 277,883 SF Graham represented both the landlord and tenant in leasing this industrial facility.
George Twitty, Jr.
Bart Smith, CCIM, SIOR Jeremy D. Pope, CCIM, SIOR
SOLD
LEASED 3414 Governors Drive Huntsville, AL 9,806 SF Graham represented Performance Drone Works in leasing office space at Stovehouse. Bart Smith, CCIM, SIOR
SOLD
LEASED
2313 Whitesburg Drive Huntsville, AL 4,000 SF Graham represented the buyer in purchasing this facility for medical use.
912 Winchester Road Huntsville, AL 10,952 SF Graham represented the owner in the disposition of this industrial facility.
5323 Endeavor Way Tanner, AL 252,800 SF Graham represented Custom Assembly in its lease of this industrial facility.
George Twitty, Jr.
George Twitty, Jr.
Jeremy D. Pope, CCIM, SIOR
37
SOLD 2094/2100 Fisher Street Huntsville, AL 16,421 SF Graham represented the owner in the disposition of this industrial facility.
LEASED
SOLD
355 Quality Circle 409 Madison Street & 408 Huntsville, AL Franklin Street, Huntsville, AL 58,883 SF 17,816 SF Graham represented Dynetics in Graham represented the owner leasing this industrial facility. in the disposition of this office Bart Smith, CCIM, SIOR facility in downtown Huntsville.
George Twitty, Jr.
Bart Smith, CCIM, SIOR Tyler Fanning, SIOR
LEASED
LEASED
LEASED
1000 James Record Road Huntsville, AL 124,097 SF Graham represented the landlord in leasing this industrial facility to UPS.
905 James Record Road Huntsville, AL 67,285 SF Graham represented the landlord in leasing this industrial space to JIT Services.
905 James Record Road Huntsville, AL 49,325 SF Graham represented the landlord in leasing this industrial space to High Sec Labs.
Jeremy D. Pope, CCIM, SIOR
Jeremy D. Pope, CCIM, SIOR
Jeremy D. Pope, CCIM, SIOR
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Graham & Co | 2021 GRAHAM REPORT | HUNTSVILLE, AL
Oakwood Road
SUBJECT
SOLD
LEASED
1241 Gnat Pond Road Leighton, AL 47,500 SF Graham represented the owner in the disposition of this industrial facility.
495 Production Avenue Madison, AL 19,200 SF Graham represented the landlord in leasing this space to GigaParts.
Jeremy D. Pope, CCIM, SIOR
Jeremy D. Pope, CCIM, SIOR
Swancott Rd
rm Blvd Chase Fa SUBJECT
SOLD
25025 Chase Farm Boulevard, Madison, AL 8.74 Acres Graham represented Penske in purchasing this industrial land site in the Greenbrier area. Tyler Fanning, SIOR
Johns Road
SOLD
Oakwood Road Huntsville, AL 2.35 Acres Graham represented the buyer in purchasing this land site. Tyler Fanning, SIOR
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AVAILABILITIES LEASE
LEASE
LEASE
Sparkman Drive
Wynn Drive
SUBJECT
ison
Pike
MERIDIAN STREET WAREHOUSES
140 SPARKMAN DRIVE
670 DISCOVERY DRIVE
2308 MERIDIAN STREET HUNTSVILLE, AL
140 SPARKMAN DRIVE HUNTSVILLE, AL
670 DISCOVERY DRIVE HUNTSVILLE, AL
Old
Mad
AVAILABILITY: 5,000 SF - 50,000 SF
AVAILABILITY: Up to 219,000 SF
AVAILABILITY: 38,000 SF
• Storage warehouse facility • Yard space available
• Industrial/flex campus within Cummings Research Park East • Located within an Opportunity Zone
• Located within Cummings Research Park West • Situated on a 10-acre campus • Additional pad site available
George Twitty, Jr. georget@grahamcompany.com
Bart Smith, CCIM, SIOR barts@grahamcompany.com Tyler Fanning, SIOR tylerf@grahamcompany.com
SALE/LEASE
Bart Smith, CCIM, SIOR barts@grahamcompany.com Tyler Fanning, SIOR tylerf@grahamcompany.com
LEASE
LEASE
150 VINTAGE DRIVE
RUNWAY DISTRIBUTION
23366 BIBB GARRETT ROAD
150 VINTAGE DRIVE HUNTSVILLE, AL
230 LARACY DRIVE HUNTSVILLE, AL
23366 BIBB GARRETT ROAD TANNER, AL
AVAILABILITY: 269,981 SF
AVAILABILITY: Up to 208,000 SF
AVAILABILITY: Up to 305,760 SF
• Fully conditioned facility within Chase Industrial Park • State-of-the-art cross dock facility • 31’ clear height
• New construction in Jetplex Industrial Park • 48 docks with 2 wide drive-in ramps • 32’ clear height • Only 1.5 miles to the I-565 interchange
• Class-A industrial facility at the NW corner of I-65 & I-565 • Expandable by 200,000 SF • Custom TI packages and incentives available
Jeremy D. Pope, CCIM, SIOR jeremyp@grahamcompany.com
Bart Smith, CCIM, SIOR barts@grahamcompany.com Jeremy D. Pope, CCIM, SIOR jeremyp@grahamcompany.com
Jeremy D. Pope, CCIM, SIOR jeremyp@grahamcompany.com
Graham & Co | 2021 GRAHAM REPORT | HUNTSVILLE, AL
LEASE
INVESTMENT SALE
VD BL
SALE
SE
C AR
H
SUBJECT
RE
40
) 20 WY D (H
E LABL AVAI RES AC 8.3
AR EV
UL
O
DIS
MA
O NB
MADISON BLVD. LAND
135 WESTCHESTER DRIVE
4701 ANGLER DRIVE
MADISON BOULEVARD MADISON, AL
135 WESTCHESTER DRIVE MADISON, AL
4701 ANGLER DRIVE HUNTSVILLE, AL
AVAILABILITY: 8.3 Contiguous Acres
AVAILABILITY: 25,000 SF
AVAILABILITY: 5,190 SF
• Convenient ingress/egress via traffic signal at Research Boulevard • Highly visible location with frontage on Madison Boulevard • Close proximity to Town Madison
• New and planned construction in the Jetplex area • Located off Madison Blvd. just west of Wall Triana Hwy.
• Investment opportunity • Truck repair shop
Tyler Fanning, SIOR tylerf@grahamcompany.com
LEASE
Jeremy D. Pope, CCIM, SIOR jeremyp@grahamcompany.com
Jeremy D. Pope, CCIM, SIOR jeremyp@grahamcompany.com
SALE
Robinson Street
SALE
SUBJECT SITE 20+ Acres
Priceville Junior High School
Bethel Road
240 HIGHWAY 31
HIGHWAY 67 LAND
600 COLLEGE STREET
240 HIGHWAY 31 HARTSELLE, AL
HIGHWAY 67 PRICEVILLE, AL
600 COLLEGE STREET ALBERTVILLE, AL
AVAILABILITY: 10,000 or 16,000 SF
AVAILABILITY: 20 Acres
AVAILABILITY: 17,766 SF
• Retail opportunity • Highly visible location with access from Hwy. 31 and Hwy. 36
• Excellent visibility along Hwy. 67 • Less than 1 mile from I-65
• Two-story office building less than 1 mile from Hwy. 431 • 3-phase power with 100 Kilowatt natural gas generator
George Twitty, Jr. georget@grahamcompany.com
George Twitty, Jr. georget@grahamcompany.com
Tyler Fanning, SIOR tylerf@grahamcompany.com
41
LEASE
SALE/LEASE
BUILD-TO-SUIT
565 LOGISTICS CENTER
BTS OPPORTUNITY
2860 DENTON ROAD
565 LOGISTICS CENTER HUNTSVILLE, AL
PRODUCTION COURT MADISON, AL
2860 DENTON ROAD TUSCUMBIA, AL
AVAILABILITY: Up to 144,750 SF
AVAILABILITY: 3 Acres
AVAILABILITY: 10,487 SF
• Planned construction in the Greenbrier area; available 3Q 2021 • 32’ clear height • 30 dock doors
• Build-to-Suit opportunity • Located in the Jetplex area
• Office/warehouse facility with 10-ton crane • 1,200 amp 3-phase power • Fenced yard area
Jeremy D. Pope, CCIM, SIOR jeremyp@grahamcompany.com
Jeremy D. Pope, CCIM, SIOR jeremyp@grahamcompany.com
George Twitty, Jr. georget@grahamcompany.com
LEASE
LEASE
SALE K VH U 9 YKH 1V
K
VH
Z 9
SK OPL
:
SUBJECT /PNO^H` ,HZ[
296 NICK FITCHEARD
13800 MOORESVILLE ROAD
HIGHWAY 72 EAST LAND
296 NICK FITCHEARD ROAD HUNTSVILLE, AL
13800 MOORESVILLE ROAD ATHENS, AL
HIGHWAY 72 EAST HUNTSVILLE, AL
Photo representative of typical construction.
AVAILABILITY: 10,000 SF
AVAILABILITY: 60,000 SF
AVAILABILITY: 28 Acres
• New construction in the Spacegate area • 2 dock doors; 1 drive-in door • 18’ - 21’ ceiling height
• Convenient access to Hwy. 72, I-65 & I-565 • Dock high and ground level loading • Ample land to accommodate yard requirements
• Within the Huntsville city limits; zoned R2A (multi-family) • Approved for 408 units
Jeremy D. Pope, CCIM, SIOR jeremyp@grahamcompany.com
Jeremy D. Pope, CCIM, SIOR jeremyp@grahamcompany.com
Bart Smith, CCIM, SIOR barts@grahamcompany.com
ABOUT GRAHAM & CO
44
Graham & Co | 2021 GRAHAM REPORT | HUNTSVILLE, AL
GRAHAM & CO – HUNTSVILLE BA RT SMITH,
J E R E M Y D. P O P E ,
CCI M, SI OR
CC I M, S I OR
MA N AGIN G B R O K E R
S E NI OR V I C E P RE S I DE NT
barts@grahamcompany.com
jeremyp@grahamcompany.com 2002
J O IN E D G R A HA M & COMPANY:
J OI NE D GRAH AM & COMPANY:
2000
AF F ILIATIO N S/HO NORS:
AF F I L I AT I ONS / H ONORS :
• Certified Commercial Investment Member (CCIM) designation
• Certified Commercial Investment Member (CCIM) designation
• Society of Industrial & Office Realtors (SIOR) designation
• Society of Industrial & Office Realtors (SIOR) designation
• Alabama Commercial Real Estate Center (ACRE), Leadership Council
• Member NAIOP – AL Chapter
• Alabama CCIM Chapter, President of Board of Directors
• Huntsville/Madison County Convention & Visitors Bureau, Board Member
• Huntsville Rotary Club
C L I E NTS I NC LU DE :
• Huntsville Land Trust – Board Member • First Methodist Church – Board of Trustees CLIE N TS IN C LUDE :
• • • •
Sanmina-SCI • Northrop Grumman • Cisco • COPT Stanley Corporation • Wells Fargo Securities • DirecTV ATK • MITRE • Dynetics • AEGON • Orbital Sciences Booz Allen Hamilton • MetLife • Rockwell Collins
• • • • •
AZ Technology • Boneal Aerospace • Custom Assembly Kaman International • Parksite • Space & Rocket Center 9 Round Fitness • Intergraph • Huntsville Hospital Kuehne & Nagel • Harris Corporation International Truck & Engine
G E O R G E TW I TTY, J R . V I C E P RE S I DE NT
georget@grahamcompany.com TY LER FANNIN G ,
sior
J OI NE D GRAH AM & COMPANY:
2018
VIC E P R E SIDE N T
tylerf@grahamcompany.com J O IN E D G R A HA M & COMPANY:
2007
AF F ILIATIO N S/HO NORS:
• Society of Industrial & Office Realtors (SIOR) designation • CCIM Candidate (Certified Commercial Investment Member) • Huntsville Rotaract Club, Member • Huntsville Committee of 100 Young Professionals Initiative, Member • Huntsville High School Wrestling Coach CLIE N TS IN C LUDE :
• MITRE • Prometric • PNC Bank • Aerospace Corporation • Stephen Gould Corporation • Wells Fargo Securities • Southern Research • DRS • LBYD Engineering
AF F I L I AT I ONS / H ONORS :
Alabama Real Estate Salespersons License – 2018
45
ERIKA HA RLESS
JAS O N B E AC H
R E A L E STATE ASSISTANT
B U I L DI NG E NGI NE E R
erikah@grahamcompany.com
jasonb@grahamcompany.com
J OIN E D G R A HA M & COMPANY:
2004
J OI NE D GRAH AM & COMPANY:
2020
B LANCH ROGERS
JOHN WILLIAMS
P R O P E RTY MA N AGER
B U I L DI NG E NGI NE E R
blanchr@grahamcompany.com
johnw@grahamcompany.com
J OIN E D G R A HA M & COMPANY:
2014
J OI NE D GRAH AM & COMPANY:
2020
A B O U T G R A H A M & CO M PA N Y Founded in 1978, Graham & Co is a full-service commercial real estate firm based in Birmingham, with offices in Birmingham and Huntsville, Alabama and the Gulf Coast, Florida. The company offers professional services including sales, leasing, property management, corporate services, consulting, investment, and development. In response to client demand, Graham has systematically extended its range of services and geographic reach, now serving clients throughout Alabama and several surrounding states.
C O M M U N I T Y I N V O LV E M E N T At Graham & Co we recognize that our clients can enhance the value of their property, business, and/or investment if the community in which they live, and work is vibrant and healthy. Graham and its employees continue to give back to the community in a number of ways including volunteering time and energy in support of a variety of community and social causes.
A F F I L I AT I O N S NAIOP–Commercial Real Estate Development Association SIOR–Society of Industrial & Office Realtors IREM–Institute of Real Estate Management CCIM–Certified Commercial Investment Member CRE–Counselors of Real Estate
LEED–Leadership in Energy and Environmental Design ULI–Urban Land Institute
G R A H A M & CO M PA N Y P E R SO N N E L PRINCIPALS
FINANCE
PROPERTY MANAGEMENT
Mike Graham, CPM, SIOR Steve Graham, MAI, CRE
Charlie Crane Micia Hardaway Janice Ivy David Walker, CFO Tana Welch
Theresa Baker Jacob Kines Thomas Michael Edward Nobinger, PA, FMA, CFM Leslie Williamson
INDUSTRIAL GROUP
Jack Brown, SIOR John Coleman, SIOR Sonny Culp, SIOR Ogden Deaton, SIOR Courtney DeShazo Joelle Rogers Jordan Tubb, SIOR INVESTMENT
Matthew Graham
OFFICE GROUP
Walter Brown, SIOR Sam Carroll IV, SIOR Bo Grisham Jerry Grant, CCIM Matt Gilchrist Lauren Limbaugh Dan Lovell, SIOR, LEED AP Charles H. Simpson
HUNTSVILLE OFFICE
Jason Beach Tyler Fanning, SIOR Erika Harless Jeremy Pope, CCIM, SIOR Blanch Rogers Bart Smith, CCIM, SIOR George Twitty, Jr. John Williams
MARKET RESEARCH ANALYST
Matt Rowan
CLIENT SERVICES MANAGER
Christie Neely DEVELOPMENT
Henry Graham II
GRAPHIC DESIGN
GULF COAST OFFICE
Jason Carnes Kevin Williams, CCIM
Joel Dorning CORPORATE SERVICES
Hayden Scott, MAI
RECEPTION
Eleanor Caver Susan Plate
INDIVIDUAL MEMBERSHIPS
HUNTSVILLE | ALABAMA
2021 OFFICE MARKET SURVEY GRAHAM & CO 305 Church Street Suite 710 Huntsville, AL 35801 256.382.9010 www.GrahamCompany.com