At a time when Connecticut has had its share of bad news, nice to see some good news coming from one of our major employers. UTC unveiled its Innovation Hub on Friday afternoon. A $60 million dollar investment into 185,000 SF of new and existing office and laboratory space. "Global innovation at UTC begins right here at the Research Center in East Hartford" said David Parekh, corporate vice president of research and UTRC director.
Thank you UTC!
See Hartford Business Journal article: $60M innovation hub debuts
There's been a lot of not-so-good news in our region lately but there seems to be more good too. The cynic (I am one of them) says, over the years, too little good and too much bad. That said, lately, seems to be more good than bad.
Latest good news? Colt Manufacturing is growing again! Good for Colt...good for the region!
See related Patch article: West Hartford Manufacturing Co to Expand
1) 50% believe industrial lease rates will increase in 2017.
2) 82% believe vacancy rates will decrease.
3) 54% predict increasing industrial sale prices.
4) Surprisingly only 30% believe new development will increase.
See attached report, including the latest UCONN scholarship recipients!
SIOR Press Release 02.10.2017 - FINAL.pdf
Recent article from CoStar shows strong industrial real estate outlook in 2017 (warehouse/DC) - Lots of factors - Low interest rates, e-commerce and strong consumer spending - Report is consistent with our region - CT and Western MA had strong year in 2016 and we expect strong demand for quality space in 2017 - Issue won't be on the demand side rather the product/inventory side - Lack of speculative construction leaving the region short on Class A supply - Recent increase in Class A rents should provide developers with reasonable return (in spite of cost of construction) - Problem is, even if developers break ground today, the product coming on line will be too late for anticipated demand.
CoStar article: E-Commerce Driving Distribution Property Growth
lots of conversation and presentations on how Uber will transform the
landscape of commercial real estate development. Less cars means
less or smaller parking lots/parking garages. Less parking means less land
needed for development. Less land means lower costs.
learn more. This article (below) in the WSJ is a good start.
Dear Tenant,Your Uber Is Here