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High Occupancy Rate in the Industrial Market is Attracting Investors and Construction

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In a year of uncertainties, the industrial market stayed strong as occupancy rates rose over the quarter and ended on a positive note with a year-over-year absorption of 188,702 SF. With an increase of 0.29% in the occupancy rate, and ending the quarter at 95.6%, it is not surprising to see rents following suit. Overall rents finished at $7.05 NNN, rising $0.51 PSF year-over-year. 

A strong occupancy rate is a good sign for landlords, but not always positive for companies needing to expand or find new facilities. Over the year, there have been many companies that have opened new facilities or expanded on-site. Bellavance Beverages completed its 142,000 SF warehouse/distribution facility in Londonderry this quarter and Stonewall Kitchen completed a 81,500 SF expansion at its warehouse/distribution facility in Rochester. 

Additionally, some build-to-suit projects were announced during the quarter which points to an uptick in industrial construction next year. This includes the Hudson Logistics Center, mentioned in the third quarter report, as well as the Granite Woods Commerce Center project that is seeking approvals. If approved, the 500,840 SF facility in Hooksett could break ground in the summer of 2021. 

The Flatley Company broke ground on its Nashua Micro-Tech Center, which will include three 1-story buildings totaling 38,000 SF. Similar to the Tuscan Village’s recent announcement, the project is looking to attract life science/bio-tech companies as the majority of the buildings will be  flex space for incubators and light manufacturing. Some landlords are looking to capitalize on the Massachusetts suburban market which has seen major growth this year. According to our Boston office, lab space had 760,000 SF of absorption over the year across the Greater Boston area. More than 2.5 million SF of life science space has come to the suburbs in recent years. 

At Colliers International in New Hampshire and Maine, we internally track over 67.8M SF of industrial space across 6 submarkets in New Hampshire. Our inventory includes buildings and condominiums 10,000+ SF and are classified as manufacturing (MFG), flex/R&D, or warehouse/distribution (W/D).

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High Occupancy Rate in the Industrial Market is Attracting Investors and Construction

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Kristie Russell

Research Manager | New Hampshire & Maine

Manchester, NH

As the Research Manager, I serve as the point person for gathering and reporting on market knowledge for the New Hampshire and Maine offices. 

I collaborate with our brokers to deliver in-depth analyses of current market conditions and trends for their clients. Using various in-house and online resources, I maintain our proprietary database, which includes detailed property statistics, sale and lease comparables, market contacts, and tenant activity within New Hampshire and Maine. 

With this data, I develop best-in-class research reports, market analyses, and market insight to ensure our clients capitalize on this research as they contemplate business decisions that significantly affect their bottom line.

Prior to becoming the Research Manager, I was a Marketing Specialist at Colliers for five years. In this position I used Adobe software, including InDesign and Photoshop, to implement marketing strategies in support of our brokers. 

My responsibilities included creating property marketing collateral - such as flyers, brochures, ads, and proposals - as well as maintaining listing databases and our exclusive listing inventory. In addition to the property marketing, I assisted in coordinating special events, handling public relations and advertising, creating brand awareness, and developing our SEO and social media campaigns. 

Additionally, I am a licensed real estate salesperson in New Hampshire.

Prior to beginning my career in commercial real estate, I worked for Gallery Marketing Communications, LLC as a graphic design artist. During my time there, I used Adobe software to design brochures, flyers, business cards, and postcards, among other marketing materials. I also worked for Gatehouse Media, Inc as a freelance sports journalist, covering high school games in Massachusetts.

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