Engines of opportunity

Transcription

1 Port, Airport & Global Infrastructure (PAGI) services 2014 List of major airport centric projects represented by JLL across the U.S. Engines of opportunity

2 Airport connections Airports play a major role in the movement of goods around the world. From the newest fashions flown in bulk from China to the one pair of shoes overnighted to your door, airports make the modern economy possible. However, today s environment is challenging for airports and owners of aviation-centric real estate. High fuel costs, stringent security requirements, regulations and weak global trade have created turbulence with overall volumes shrinking for the last two years. Even so, major U.S. air cargo hubs remain potent generators of real estate demand. While, short-term growth prospects for aero centric properties may be down, in the long run these are critical assets that should not be ignored by both investors and occupiers. challenge is and will continue to be land constraints. With jet fuel prices high, air cargo flows will remain somewhat precarious so it will be important that real estate costs do not crowd out the profits of industrial users. Chicago (ORD) scores second highest in the JLL PAGI Airport index. And although growth in cargo volumes has been lackluster over the last 18 months, the airport and the surrounding market have a number of enduring strengths. First, the airport is a major international gateway, and with that comes diversification in air carriers. Added to this are Chicago s large population base, central geographic location, complimentary rail assets and enormous industrial market. These all combine for excellent demand generation near O Hare. Significant demand exists for modern space near the airport, but rents are not yet high enough to justify demolition and redevelopment. Memphis (MEM) has huge upside potential in the long term. It is the prototypical integrator-dominated market with over 99 percent of the cargo volume carried by FedEx. The industrial real estate market exists for the most part within a 15-minute drive of the airport and over a third of the space is big box. Success here is all about connectivity; between the massive confluence of Class I rail lines and FedEx s SuperHub, Memphis is in the sweet spot both for traditional and e-commerce distribution. FedEx continues to offer better and more complete service to businesses, acting as a super-3pl able to deliver on all aspects of the supply chain. Airport markets to watch Miami (MIA), with its deep connections to South and Central America, is the market we feel will provide the most opportunities to capitalize on air-cargo related demand. The airport and surrounding businesses control the food and flower trade and the lack of a single dominant carrier makes room for lots of competition and demand for real estate. The market s biggest 02 Engines of opportunity

3 Key takeaways from 2014 Airport Outlook: JLL s PAGI U.S. Airport Outlook provides analysis of the current and future impact of economic developments, cargo volumes, trade flows and shipping patterns on industrial real estate surrounding the nation s top cargo airports. Air freight comprises only 2.0 percent of total cargo volume being shipped on a global basis. However, it represents 35.0 percent of the value of all commodities ($6 trillion in all) being shipped throughout global supply chains. Perishable items make a case for the higher cost of air freight, and biologics are helping drive momentum. Cold storage space needs are on the rise. How consumers shop is causing the global marketplace to become increasingly connected. International order fulfillment will benefit the industry and elevate demand for airport-centric industrial space. Not all airport markets are created equal, and this can be traced to an overall market s maturity. Rent premiums are more common in in-fill markets than emerging logistics corridors. Chicago O Hare earns our highest index score and is the airport with the best near-term prospects for real estate. The greater market offers six major railroad connections, and is a one-day drive-time to nearly a third of North American consumers. Engines of opportunity 03

4 Prologis LAX Logistics Los Angeles, CA Prologis LAX Logistics Center offers the finest dock high units at LAX. Rear loaded unit sizes range from 7,000 50,000 s.f. with unsurpassed truck access for tractor trailers. Units offer a minimum of 1 9x10 truck door for each 2,000 s.f. of warehouse floor area. The units are sprinklered, 22 minimum clear height and offer expansion and contraction within the park. 1/8th of a mile to LAX tarmac and U.S. customs Immediate access to the 405/105 Freeways As close as you can get to LAX without being on the ramp 316,000 s.f. in a two-building complex 180 foot central truck court / auto parking is separate from truck court Owned and managed by Prologis Ideal for international/global logistics and air/ocean freight forwarding companies Unsurpassed truck access in both facilities Proximity to LAX 500 feet Luke Staubitz Luke.Staubitz@am.jll.com Goodman Logistics Center Oakland, CA Goodman Logistics Center Oakland is the premier development in Northern California s East Bay. The ±374,725 s.f., acre project is in the Port of Oakland submarket and located in the Oakland Airport Business Center, a business-friendly enterprise zone and eco-conscience industrial city just east of the San Francisco CBD with excellent access to I-880, Bay Bridge and freeways. Close to 4 interstates and 5 US highways Oakland International Airport is served by 14 domestic/ international passenger carriers, flying to 39 nonstop destinations Port of Oakland is 7.4 miles away In the western terminus of the Union Pacific and BNSF railroad lines Zoning: Business Park Interior / Industrial LEED certified shell ESFR and 32 foot clear height Cross dock loading with 92 dock high loading doors and 39 trailer drop spaces Largest state of the art distribution facility available within 10 miles of the port Located in Oakland s Enterprise Zone Long term lease available Direct access to overweight container route Proximity to OAK 0.25 miles Jason Ovadia Jason.Ovadia@am.jll.com Engines of opportunity

5 JFK Logistics Center Springfield Gardens, NY Completed in 2003, the JFK Logistics Center project is the only class A freight and logistics facility located at JFK International Airport. This premier facility consists of four buildings totaling 527,000 s.f. on a 26 acre site which features state of the art security, an on-site café and parking. It houses tenants such as the GSA, TSA, KWE, Nippon Express, UTi United States, Inc., DB Schenker and Forward Air. Adjacent to JFK, one of the world s leading international air cargo centers Shuttle bus departs every 30 minutes during morning and late afternoon rush hours 24 clear height Large exclusive truck courts Fully fenced and gated 24/7/365 facility with security guard house Traffic light entrance & exit plus secondary exit only west gate back to JFK Interior staircases between office and warehouses in a few larger units 59,442 s.f. coming available in January 2015 Aerotropolis Logistics Park Memphis, TN Superior location at the Southwest quadrant of I-240 and Perkins Road, Aerotropolis Logistics Park allows unmatched connectivity to all modes of transportation, offering immediate access to FedEx world hub, UPS regional hub, rail-intermodal yards and Port of Memphis. The park is owned by Johnson Development. Busiest cargo airport in North America Memphis is home to the FedEx world hub with the latest drop-off time in the U.S. Memphis has 3rd busiest trucking corridor and 4th largest inland port in the U.S. Five Class I rail lines with over $1.2B spent in the past decade on rail infrastructure 113 acre site Planned Development approval for up to 1,200,000 s.f. of Class A industrial space Foreign Trade Zone (FTZ) eligible, New Market Tax Credit eligible and strong PILOT potential Long term lease Build-to-suit and design/build Land sales Proximity to JFK 0.25 miles Reid J. Berch Reid.Berch@am.jll.com Proximity to MEM 3 miles Russ Westlake Russ.Westlake@am.jll.com Engines of opportunity 05

6 Former Hawker Facility Little Rock, AR Located on-airport at the Little Rock International Airport, this 400,000 s.f. former Hawker aircraft build-out and maintenance facility includes 5 buildings accommodating functions such as specialized hangars, office/production, paint, as well as over 11 acres of airside ramp space. Building options range from 5,000 s.f. to 191,000 s.f. and have varying door heights and widths to allow access for a wide range of aircraft. On-airport at Little Rock International Access to interstates I-30 and I-40 Near the Port of Little Rock Major rail access in vicinity 5 buildings totaling 400,000 s.f acres of airside ramp Long term lease Immediate availability Proximity to LIT on airport Russ Westlake Russ.Westlake@am.jll.com Engines of opportunity

7 Wilmington Air Park Wilmington, OH This 2,000 acre fully functioning airport features over 3 m.s.f. of offices, warehouses, hangars and other facilities, as well as two runways 10,701 x 150 and 9,000 x 150. It can accommodate CAT III full instrument approach for the largest aircraft of today. Flexibility in landing schedules, over 100 acres of apron space and on-site aircraft maintenance. Access to I-71 via US 68 or Ohio Route 73, midway between Cincinnati and Columbus 3 international airports in a 60 mile radius Strategic midwestern location 1 Day Trucking to 60% of US population FTZ status 10 buildings totaling ±2m s.f. available of office, warehouse & manufacturing facilities for lease 255 acre development site available for build-to-suit opportunities of any size Perfect location for aviation manufacturing, research & development, flight testing, air cargo & logistics opportunities Build-to-suits/leases Very aggressive incentive programs Proximity to ILN on tarmac David Lotterer David.Lotterer@am.jll.com Distribution Center Dallas - Fort Worth, TX This acre site is conveniently located just off DFW property with great access to SH 183 and SH 161. to construct a distribution location with direct access to the airport and centrally located in the DFW metro area. Adjacent to DFW International Airport Central location within DFW Metroplex area Direct access to state highway 161 and state highway 183 and excellent access to state highway 114 and state highway 360 Master planned industrial campus Valley view lane frontage Double freeport available 380 program available Zoned for industrial distribution Build-to-suit Land sale Proximity to DFW immediate Michael Swaldi Michael.Swaldi@am.jll.com Engines of opportunity 07

8 Stryker Business Center Kent, WA Be at the Center with a new distribution or manufacturing facility at Stryker Business Center, the newest, Class A industrial park being developed by IDS and Clarion Partners. This 72 acre project will feature up to six new speculative and build-to-suit facilities totaling 1.4 million square feet; state of the art industrial facilities in a rare, central location. Midpoint between Port of Seattle and Port of Tacoma Immediate access to three major freeways: 2.4 miles to I-5, 2.1 miles to SR 167 and 3.6 miles to I-405 Centered in Kent Valley Industrial market, Puget Sound s most prominent market Master planned, all entitlements in place Phase I: two state-of-the art distribution facilities featuring 120,599 s.f. and 318,195 s.f. with occupancy by February 2014 Phase II: ±45 acres for Build-to-suit/lease Rare, in-fill site; build-to-suit Adjacent to greater Seattle to the north and greater Tacoma to the south Ample trailer and employee parking Proximity to SEATAC 3.7 miles Les Boudwin Les.Boudwin@am.jll.com Airport I-10 Business Park Phoenix, AZ Airport I-10 Business Park is a new Class A industrial development located minutes from Phoenix Sky Harbor Airport developed by Wentworth Property Company and Clarion Partners. This ±58 acre project features five (5) buildings totaling 920,584 s.f South 24th Street, Phoenix, AZ Direct access to I-10 and I-17 Freeways Five (5) buildings totaling 920,584 s.f. on ±58 acres Minimum 30 clear ceiling height Dock high and grade level loading; ±100% concrete, truck courts ESFR fire sprinklers Four (4) bay depth with 50 column spacing (60 speed bays) buildings One (1) 360 cross dock with 60 column spacing (60 speed bays) First major development in the Airport submarket in the last five (5) years High-end corporate image, institutional quality development Outstanding airport submarket location with direct access to all transportation Brand new cross dock and rear loaded buildings Completion 3Q 2014 Proximity to PHX 3.5 miles Pat Harlan Pat.Harlan@am.jll.com Engines of opportunity

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10 Former Radix Building Salt Lake City, UT The former Radix building is located just off of I-80 in a very close proximity to the Salt Lake International airport. It is 56,614 s.f. and can be used for Office, Flex, or Lab space. Nearby Salt Lake International Airport Direct Access to I-15 Freeway visibility 54,614 s.f. available divisible to 2,500 s.f. Office / Flex or Lab use 3 roll-up doors Tenant improvement allowance available Open layout ideal for call center Flex/Lab space easily converted to office Proximity to SLC 3 miles Wick Udy Wick.Udy@am.jll.com The Hangars at 5615 Mesa, AZ The property was developed as a full-service MRO in two phases between 2007 and The site provides ample parking, including some covered space and a covered lobby entrance. With several high- end finishes and above-standard amenities, the subject offering provides a turn-key environment for a sophisticated user far below replacement cost S. Sossaman Road, Mesa, Arizona Situated at the north entrance of Phoenix-Mesa Gateway Airport (IWA / AZA) Conveniently located between Cessna/Citation and Embraer Service Centers with direct runway access Former build-to-suit for Hawker-Beechcraft maintenance repair operation 73,826 sf state-of-the-art facility consisting of two (2) airconditioned hangars 25,800 sf & 25,140 sf with 22,886 sf of high-end office/shop areas Able to accommodate the largest corporate aircraft with 28 high x 159 wide doors and large ramp area For sale with long-term ground lease in-place ±5.06 acre site area with adjacent land available for expansion Phoenix-Mesa Gateway Airport is poised to be major reliever for Phoenix Sky Harbor Int l Airport Proximity to IWA/AZA on airport Bill Honsaker Bill.Honsaker@am.jll.com Engines of opportunity

11 Port, Airport & Global Infrastructure (PAGI) services Transportation hubs evolve and grow as fast as the world turns. Emerging populations and shifting patterns in the global movement of goods and cargo have accelerated new trends in logistics, technology, transportation and security. Plus, the demand for worldwide shipping environmental sustainability will only continue to grow. All of which magnifies the importance of real estate to international distribution channels, and dictates that yesterday s approaches won t solve tomorrow s challenges. Our experienced team of aviation and maritime real estate experts draw upon deep, real-time knowledge of the trends, challenges and opportunities surrounding seaport and airport infrastructure and their connectivity to the real estate equation. Working alongside the firm s integrated service lines, our PAGI practice brings leadership, strategic relationships and service excellence to port and airport interests worldwide. PAGI puts out the following reports: Seaport Outlook and Airport Outlook Engines of opportunity 11

12 Contact information Craig S. Meyer, SIOR International Director President, Industrial Brokerage Americas Richard H. Thompson Managing Director Head of Supply Chain & Logistics Solutions Port, Airport & Global Infrastructure Services Americas Read our latest U.S. Airport Outlook About JLL JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual fee revenue of $4 billion, JLL has more than 200 corporate offices and operates in 75 countries worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3 billion square feet and completed $99 billion in sales, acquisitions and finance transactions in Its investment management business, LaSalle Investment Management, has $48.0 billion of real estate assets under management. For further information, visit Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.