With vacancy down around 4.66%, companies who need more space are looking to expand their current facilities or considering ground-up construction. The Portsmouth submarket, with vacancy hovering at 1%, is the tightest market for existing industrial space.
After a two-year search, Revision Military chose Pease International Tradeport to build its US headquarters. It is in the process of building a 47,000 SF R&D/manufacturing facility, with the ability to expand by an additional 55,000 SF when needed, on an 8.7 acre lot off Corporate Drive. Revision builds protective military equipment for soldiers and this facility will house a warfighter experience and development lab. The company has already started hiring its upper management team and aims to hire 50 to 75 employees.
Lonza Biologics has been at Pease for over 10 years and recently announced plans to expand its footprint. The international high-tech company currently occupies 650,000 SF and is looking to expand and create its own campus with a total of a million SF supported by two parking structures. This addition will add about 1,000 new jobs to their staff at the Tradeport.
We see a similar expansion trend in the Manchester and Nashua submarkets. In May, Electronics for Imaging (EFI) officially opened its new 250,000 SF facility on 17 acres by the Manchester-Boston Regional Airport. EFI moved its US headquarters from Meredith, increased its footprint by about 25%, and plans to add up to 70 new jobs.
In the Nashua submarket, Hitchiner Manufacturing is looking to grow and add more jobs at its Milford location. The manufacturing company went to the planning board at the beginning of this quarter with plans to build an 85,000 SF facility that will add about 85 new jobs.
With all the proposed and new construction, it is probably not a coincidence that structural steel supplier, SL Chasse Steel in Hudson, applied for site approvals to double its 34,000 SF facility on Christine Drive. The company has grown over the last few years and hopes to add up to 20 new positions with its expansion.
According to the Economic and Labor Market Information Bureau, from June of 2017 to 2018, the State added 2,300 manufacturing and 2,000 construction jobs. As companies continue to expand and add new jobs, which will continue to strengthen New Hampshire’s economy, we believe both the office and manufacturing real estate markets will strengthen.
At Colliers International | New Hampshire, we internally track over 64 million SF of industrial space, including only buildings larger than 10,000 SF, across six New Hampshire submarkets. These buildings can be multitenant, single tenant, or owner occupied and are classified as General Industrial (GI), R&D/Flex, or Warehouse/Distribution (W/D).