The industrial sector has been busy this year, notably with investors and owner-users purchasing buildings. The vacancy rate continues to see a steady decline over the past three years, ending the third quarter of 2022 at 3.3%.
As vacancy in the industrial sector falls, asking rents climbed by 11.9% ($0.86 PSF) year-over year, ending the third quarter at $8.10 NNN. Even with the increase, the average rent in the submarket is well below the state average of $10.45 NNN. The flex and warehouse/distribution sectors had the largest spikes, rising by 28.9% ($1.89 PSF) and 4.6% ($0.36 PSF) respectively.
One of the most active investment groups this year is RJ Kelly Company, which acquired 18 properties over the last quarter. In August, RJ Kelly purchased 14 properties in separate transactions totaling 745,500 SF for $90.0 million, with an average sale price of $118 PSF. The properties are in Amherst, Hudson, Londonderry, Manchester, Nashua, and Salem. Then in September, it purchased 112,360 SF in three flex buildings on 13.05 acres for $13.375 million ($119 PSF) at 15, 18, 20, and 22 Continental Boulevard in Nashua.
Another portfolio sale was Lincoln Property Company, an investment group based out of Texas, purchasing four fully leased flex buildings from Albany Road Real Estate Partners in August. The transaction included the 106,236 SF building at 22 Cotton Road in Nashua for $10.5 million ($99 PSF), the 143,060 SF building at 645 Harvey Road in Manchester for $14.7 million ($103 PSF), the 145,540 SF building at 5 Wentworth Drive in Hudson for $22.0 million ($151 PSF), and the 146,977 SF building at 1050 Perimeter Road in Manchester for $21.8 million ($148 PSF).
Also in August, a non-traditional industrial sale worth noting was the purchase of a 74.89 acre lot for $6.0 million ($88,129 per acre) at 161 Lowell Road in Hudson. The Boston-based commercial developer, GFI Partners, plans to build a 504,000 SF high-bay warehouse facility with over 100 loading docks and ample parking for employees and trailers.
In June, an LLC associated with WesBell Electronics purchased the 27,120 SF building at 746 Daniel Webster Highway in Merrimack for $4.2 million ($155 PSF). The multitenant building will remain the home of AAA, with WesBell relocating into 18,000 SF, doubling its size when it moves from down the street. This is the second time this property has traded hands this year, selling for $2.2 million ($81 PSF) in March to a NH-based investor, who also purchased the abutting 3.6 acre lot for an additional $300,000.
4 State Street in Nashua was acquired by Rhino Capital Advisors, a Boston-based investment group, for $2.55 million ($100 PSF). The 25,375 SF manufacturing building is occupied by Circuit Connect Inc, which signed a lease extension after the closing.
In October, Kelley Family Properties purchased the multitenant flex building at 4 Bud Way in Nashua. The NH-based investors bought the building for $3.875 million ($85 PSF) after it sold an office building in Concord.
In September, the 66,000 SF warehouse building at 8 Roosevelt in Hudson reached full occupancy. After the Bormann Brothers opened its first NH location during the first quarter of the year, the company expanded by leasing the remaining 28,500 SF in the building.
At Colliers , we internally track over 19.97 million SF of industrial space in the Nashua submarket. Our inventory includes buildings and condominiums 10,000+ SF and are classified as manufacturing (Mfg), flex/R&D, or warehouse/distribution (W/D).