The state continues to see investment sales flourish and new companies enter the market. Despite many transactions occurring over the quarter, occupancy rates lowered by 0.7% year-over-year. Even with occupancy falling slightly, rents still increased by $0.43 PSF or 6.4% year-over-year, ending the quarter at $6.76 NNN. This rent increase may be due to how tight the market is with occupancy at 94.7%.
The largest investment sale to occur so far this year was at 52 Pettengill Road in Londonderry. Industrial Logistics Properties Trust, a MA-based investment group with over 270 buildings in its portfolio, purchased its first NH building for $50.6M ($83.86 PSF). The 603,360 SF warehouse/distribution building was built for Pratt & Whitney in 2015.
Also in the Manchester submarket, Robert K. Karpp Company opened its first NH location at 468 Pepsi Road in Manchester by subleasing 26,600 SF. The company services MA, RI, and CT, as well as southern NH and southern ME.
RX Green Technologies moved within the submarket, leaving Manchester and leasing 10,400 SF at 15 Tinker Avenue in Londonderry. RX Green Technologies delivers and supports research-backed products to commercial cannabis cultivators. This move doubles the size of the company’s operation and expands its manufacturing space to keep up with demand.
Moving up to the Concord submarket, a local investor purchased two industrial buildings in Concord with a total of 124,680 SF. ZJBV Properties purchased the 112,380 SF general industrial building at 70 Pembroke Road. This multitenanted building was about 38% occupied and sold for $3.7M ($29.68 PSF). ZJBV also purchased 212 Pembroke Road for $800,000 ($65.04 PSF). This 12,300 SF general industrial building is 100% occupied by NH Paving Pros.
The submarket also welcomed a new tenant opening its first NH location. Perma-Liner Industries opened in 5,625 SF at 7 Tallwood Drive in Bow. The new facility will support the work of the manufacturer’s four other distribution centers in FL, CA, DE, and IL, and will employ 9 people in sales, marketing, and technician roles.
In the Nashua submarket, we saw two companies expand. Integra Biosciences Corporation purchased the 32,680 SF R&D/flex building at 22 Friars Drive in Hudson for $4.0M ($112.40 PSF). The company is relocating from 8 Executive Drive and doubling its size, but will continue to manufacture product at its nearby 27,000 SF plant in Londonderry. This move is being driven by 23% company growth and it will look to hire 5 to 10 people in the next year.
DiaCom Corporation expanded into a second location at 19A Columbia Drive in Merrimack. This 6,500 SF facility is in addition to its primary 30,000 SF facility in Amherst. Historically, the company has employed about 100 people. In recent years, that number has grown to 160 and DiaCom is planning for continued growth.
Also in the Nashua submarket, 1 Chestnut Street in Nashua sold for $8.025M ($19.82 PSF) to an investment group, the Manzo Company, LLC. This unique 404,860 SF R&D/flex mill building was about 91% occupied at the time of the sale, with 35,000 SF still on the market.
In the Portsmouth submarket, Micronics, Inc downsized its footprint in Portsmouth by selling its 31,100 SF general industrial building at 200 West Road. It also moved out of space in neighboring buildings and consolidated into 10,545 SF of Class A office space at 300 Constitution Drive. The Kane Company purchased the building at 200 West Road for $2.65M ($85.21 PSF) and quickly leased it to Cirrus Systems Inc. Cirrus is relocating its east coast location from Saco, ME.
Another notable investment sale occurred in the submarket at 9 Batchelder Road in Seabrook. The 44,246 SF general industrial building was purchased by Torrington Properties of Boston for $4.25M ($96.05 PSF). The transaction included the signing of a lease by Functional Coatings from Newburyport, MA, which will relocate some of its operations from its 40,650 SF MA facility.