Challenge

Colliers International was awarded the disposition assignment of two industrial manufacturing buildings in Atkins, VA, owned by Masco Corporation. These buildings were formerly utilized for the manufacturing of cabinets for the home construction market. In addition to being specialized buildings, the team was faced with the fact that they were located in a rural tertiary area with a shallow base of industrial users coming out of the economic downturn.

Strategy

The client’s goal was to dispose of these assets in a timely manner while maximizing their value; therefore, the Colliers team aggressively went to work in creating awareness of the buildings. Beyond the typical marketing (brochure production, electronic listing databases, etc.) our team enlisted the assistance of the local economic development office to schedule meetings with industrial users within the market in order to perform labor interviews. Additionally, we physically canvassed and called upon industrial real estate users within the region anticipating that the purchaser would be a user located within a 50 to 100-mile radius of the buildings.

Services

The labor interviews performed served a dual purpose: to understand the employment skill set within the region so we could generate target marketing of the assets to specific companies and so we could be able to educate prospective companies interested in the buildings on the labor force and profile of the community. We physically canvassed numerous manufacturing companies along I-81 from Bristol, TN to Roanoke, VA (a 150-mile stretch of interstate). The canvassing generated several inquiries and inspections of the buildings.

Results

The client was able to dispose of both of these assets in a timely manner which reduced any further carrying costs associated with the buildings. We disposed of the 272,170 SF facility within eight months of being engaged with the assignment and the 138,875 SF facility was sold with 17 months from time of going to the market. We continue to be of assistance to the client with other real estate needs they have within our market.