According to the most recent Xceligent report concerning business lease activity, industrial space is getting harder to find. Fourth quarter statistics indicate that there was 265,000 sf of industrial space absorbed in the year. Asking rates for this type of property were increased 8% over that same time period with an ending vacancy rate of 4.8%, which is very low by historical standards. With very few new projects underway, the market appears to be very tight for businesses requiring new or larger quarters.
As you drive down Saddle Creek Drive north of Dodge street you can’t help but notice the different improvement projects that are all occurring at this time. We see a rebuilt video shop becoming a national auto parts store with new paint and improvements to the building. The deli shop is adding a drive-thru to a worn-out record store that has been empty for some time. The Target building on the north side of the street is no longer standing and the parking lot is receiving a lot of attention. We expect to see demolition completed soon and walls to be going up next.
All of this speaks to the viability of the mid-town area/neighborhood. We are excited to be located in the midst of this market and want to see more sites improve.