Engines of opportunity

Transcription

1 Port, Airport & Global Infrastructure (PAGI) services 2015 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. Airport markets to watch Chicago (ORD), with its large population base, central geographic location, complimentary rail assets and enormous industrial market, is ideal for air cargo and sores the highest in the JLL PAGI Airport index. O Hare s annual cargo gain of 10.0 percent outpaced all other airports, and its immediate industrial base of million square feet is the largest in the country. With a wide diversity of carriers, in addition to the aforementioned fundamentals, tenant demand remains high. Airport submarket rents exceed the greater market s average by 24.3 percent, and infill development is underway, with DCT, Liberty Property Trust and Breenan Investment Group announcing facilities. More speculative redevelopments targeting air cargo and logistics firms are to be expected. Investors, meanwhile, will be drawn to the market s broad occupier pool. Miami (MIA) handles 71.6 percent of the nation s perishable imports, in addition to hi-tech commodities, telecommunications equipment, textiles, pharmaceuticals and industrial machinery. Miami is the gatekeeper of trade between Latin America and the U.S., enhanced its infrastructure and this is benefiting industrial properties. Adjacent to the airport, for instance, is an 8-building project with 1.6 million square feet of proposed space. The development will feature private access to the Florida East Coast Railway (FECR) intermodal yard, which has direct rail access to the Ports of Miami and Everglades (and the rest of the nation). It is already 68.0 percent preleased. Los Angeles (LAX) is fueled by two-way trade with China. The airport market s vacancy is the tightest of all others in this study, at 2.8 percent, while rents command a 63.5 percent premium. The local market faces the constraints of obsolete inventory (the average facility was built in 1965), and although infill development is always an option most new construction occurs further inland. Additionally, a handful of older industrial facilities have been converted to other uses, such as office, in recent years. The airport s top air freight commodities include civilian aircraft, engines and parts; unmounted diamonds; computer chips; and cellular phones and parts. Key takeaways from 2015 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. Global air cargo realized a 4.5 percent annual increase in 2014 and the forecast calls for 5.0 percent growth in This comes on the heels of global GDP s measured acceleration since 2010, and some retailers contending with congestion issues at West Coast ports through the 2014 holiday season, and well into the first half of 2015 utilizing air freight. Air freight s inherent costs, counterbalanced with the timesensitive and high-value commodities that drive it, will equate to modest volume growth over the next few years. A portion of this will come from increasing global e-commerce sales and biotechnology. For the latter, the global biotechnology industry posted $288.7 billion in estimated revenues in 2014, culminating to a 5-year average increase of 10.8 percent. Although world trade is growing at a swifter pace than air cargo demand, its relevance is irrefutable: While air freight comprises only 1.0 percent of international trade volume, it encompasses 35.0 percent of the value of commodities ($6.8 trillion in all) being shipped throughout the global supply chain. Airport-dependent occupiers, that import and export nonperishables generally need to be within 15 miles of the tarmac to contend with road traffic and to meet delivery windows; those that deal in perishables (e.g. fresh flowers and tropical fish) need to be within 3 miles of the gates. This suggests that airports with increasing volume growth are better positioned to see declining vacancies and rent increases in their industrial facilities. 02 Engines of opportunity Engines of opportunity 03

3 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 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 Phase 1 construction complete (3 buildings totaling 604,658 s.f.), Phase 2 (2 buildings totaling 319,070 s.f.) under construction, estimated completion December 2015 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 Proximity to JFK: 0.25 miles Reid J. Berch Reid.Berch@am.jll.com BWI Build-to-suit opportunity on 26 acres of land Baltimore, MD This build-to-suit opportunity sits on 26 acres and has a service apron up to 685,000 s.f., a storm water management system in place and a primary runway length in excess of 10,000 feet. This facility has close proximity to multiple hotels, MARC / Amtrak, bus services, rental car facilities, Fort Meade, NSA and the Port of Baltimore. On-airport at Baltimore-Washington Thurgood Marshall International Airport Located at Mathison Way and Aviation Boulevard (Route 170) Minutes to I-95, I-195 and I-295. Direct access off of Aviation Boulevard Airport Loop. Build-to-suit suites available of up to 300,000 s.f. Totaling 26 acres available Primary runway length in excess of 10,000 feet. Long-term lease Immediate availability Proximity to BWI: On airport Ben Meisels Ben.Meisels@am.jll.com Proximity to PHX: 3.5 miles Pat Harlan Pat.Harlan@am.jll.com Engines of opportunity Engines of opportunity 05

4 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 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 ±2 m.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 161 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 Proximity to ILN: On tarmac David Lotterer David.Lotterer@am.jll.com Engines of opportunity Engines of opportunity 07

5 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 m.s.f.; 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 Proximity to MIA: 4 miles International Distribution Center at Doral Doral, FL International Distribution Center at Doral is a Class A industrial building located at 3505 NW 107th Avenue, Doral, Florida owned by Clarion Partners. This ±385,818 s.f., ±17.4 acre project features ±112,500 s.f. immediately available with ±3,217 s.f. office space NW 107th Avenue, Doral Florida Centrally located in the heart of Doral on NW 107th Avenue Zoned: IU-C (Miami-Dade) 28 clear ceiling height 31 dock high doors with 2 van height doors, 14 dock levelers, 3 ramps ESFR fire sprinklers 50 by 40 column spacing Covered loading dock (South side) Proximity to the highest cargo-traffic airport in the country provides a competitive advantage for perishable distributors Lease space in an institutionally-owned, Class A distribution facility with abundant loading doors, 28 clear ceilings and existing office space Building was completed in 1998 and is ready for immediate occupancy Steven Medwin Steven.Medwin@am.jll.com Porteos Denver, CO Porteos is a 1,287-acre mixed-use development opportunity adjacent to Denver International Airport (DIA). Located thirty minutes from Denver s CBD, with two existing, completed interchanges providing immediate and excellent access to / from E-470 and the surrounding Denver metro area. Porteos is the closest private property to DIA s terminal and cargo facilities. Adjacent to Denver International Airport (DIA) Site benefits from 2 existing interchanges at E-470 / 56th & 64th and one on Pena (Jackson Gap) Gateway from Aurora to DIA Commercial mixed-use development opportunity 3rd Largest U.S. Domestic Flight Network after Hartsfield- Jackson Atlanta International & Chicago-O Hare International Over 80% average occupancy in more than 3,000 hotel rooms 7-10 miles from the terminal one of the highest hotel occupancy rates in the Metro area Office, industrial, retail, hotel development. Includes agreement with DIA allowing the development to connect directly to Pena Boulevard at the existing Jackson Gap interchange Accessible to the DIA apron via an exclusive tug road. Proximity to DIA: 2 miles Carmon Hicks Carmon.Hicks@am.jll.com Engines of opportunity Engines of opportunity 09

6 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 DCT Cargo Center Hawthorne, CA DCT Cargo Center offers the most functional Class A large-block (50,000+) logistics units at LAX. Rear loaded units range from 20,000 to 215,000 s.f., including the 215,000 s.f., Class A cross dock addressed at 2815 W. El Segundo Boulevard. The units offer unparalleled truck courts, ESFR Ready sprinkler system, 30-foot minimum clear height and best-in-class offices. 5 miles to LAX Immediate access to 105 freeway 15 miles to Ports of Long Beach and Los Angeles 400,000 feet in a two building complex 215,000 foot, 95 door crossdock 185 foot truck court Professionally owned and managed by DCT Industrial Ideal for Global Logistics Providers Ideal for air and ocean freight companies Most functional large block Class A space in existence at LAX Proximity to LAX: 5 miles Barry Hill Barry.Hill@am.jll.com 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 issues the following reports: Seaport Outlook and Airport Outlook 10 Engines of opportunity Engines of opportunity 11

7 Contact information Craig S. Meyer, SIOR President, Industrial Brokerage Americas Mark Levy Head of Port, Airport & Global Infrastructure Services 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. A Fortune 500 company with annual fee revenue of $4.7 billion and gross revenue of $5.4 billion, JLL has more than 230 corporate offices, operates in 80 countries and has a global workforce of approximately 58,000. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3.4 billion square feet, or 316 million square meters, and completed $118 billion in sales, acquisitions and finance transactions in Its investment management business, LaSalle Investment Management, has $55.3 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. 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.