CBRE-Albany reports strong Capital Region warehouse demand and lowest vacancy rates since recession. 

From the Business Review:

Slightly more than 1 million square feet of industrial space was filled in the first half of 2015 in the Albany, New York, area, dropping the vacancy rate to the lowest level since before the last recession, according to a survey by CBRE-Albany. The vacancy rate among 63.1 million square feet of industrial space was 7.3 percent, compared to 8.9 percent in the second half of 2014. The industrial vacancy rate hasn’t been that low since before the 2007-08 recession, according to CBRE.

The “GlobalFoundries effect” has led to historically high leasing rates and faster leasing times on buildings within 10 miles of the Luther Forest Technology Campus, according to CBRE-Albany.

According to Richard Sleasman, President of CBRE-Albany, a major factor driving that demand is that suppliers are now committing to leases that are five to seven years long, as opposed to the shorter-term leases that were common when the computer chip plant opened several years ago. Short-term leases make it difficult, if not impossible, for developers to get financing for new construction.

The tightness of the market also means tenants are paying more.

The asking lease rate in Albany County increased 32 cents per square foot, to $4.59 per square foot, and $1.18 per square foot in Saratoga County, to $6.69 per square foot, compared with a year ago.

The overall average asking lease rate for the Capital Region fell slightly to $4.09 per square foot, a decline attributed to space available outside the core four counties.

Read the whole article at: CBRE-Albany reports big jump in warehouse leasing in Albany, New York, area – Albany Business Review

About Gary Snowdon, ASA

Commercial Real Estate Appraiser in New York State's Hudson Valley, Capital, Saratoga, and Adirondack Regions.
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