Recently Completed Transaction: One Campbell Street, Pawtucket, Rhode Island

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We are pleased to announce the sale of One Campbell Street to RJP Packaging for $1,150,000. Daniel Cregan, a member of our Rhode Island Industrial & Logistics Advisory & Transaction Services team, represented the seller, Imperial Packaging. One Campbell Street is a 47,450 SF industrial building located on 1.42 acres of land in the desirable Industrial Highway area of Pawtucket. The site has good access to Interstates 95, 195, 295 and 495. The building includes 40 parking spaces, five dock-height doors, 14-20′ clear height and a 5,000 SF office area.

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CBRE/New England’s Rhode Island Industrial & Logistics Advisory & Transaction Services team is comprised of knowledgeable real estate experts who have a proven track record in serving the full spectrum of industrial services. Our global service platform offers expertise in supply chain logistics, manufacturing, R&D, warehousing and distribution, and land measurements. Supported by up-to-date knowledge of local, regional and national industrial markets, we offer unparalleled levels of experience and expertise on behalf of both occupier and landlord clients.

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Recently Completed Transaction: 25 James P. Murphy Highway

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We are pleased to announce the sale of 25 James P. Murphy Highway to D.E.J. Realty, Inc. for $1,384,500. 25 James P. Murphy Highway is an industrial building located in West Warwick, Rhode Island. Located in the desirable and well-established West Warwick Industrial Park, this site is directly off Interstate 95 (Exit 8) with convenient access to Interstate 295 and Routes 2 and 4. The three-acre property consists of 25 parking spaces, 8′ x 8′ loading docks and flexible zoning. The building consists of 16,800 SF of industrial space and 4,500 SF of office space for a total of 21,300 SF.

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CBRE/New England’s Rhode Island Industrial & Logistics Advisory & Transaction Services team is comprised of knowledgeable real estate experts who have a proven track record in serving the full spectrum of industrial services. Our global service platform offers expertise in supply chain logistics, manufacturing, R&D, warehousing and distribution, and land measurements. Supported by up-to-date knowledge of local, regional and national industrial markets, we offer unparalleled levels of experience and expertise on behalf of both occupier and landlord clients.

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Recap: 2018 CBRE/New England Rhode Island Market Overview

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At our 2018 Rhode Island Market Overview our Rhode Island team presented on the state of the industrial, office and investment markets.

Alden Anderson, Senior Vice President/Partner, introduced Governor Gina M. Raimondo, who provided a compelling presentation on the status of the Rhode Island economy.

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“22 companies have chosen Rhode Island over anywhere else…invest in Rhode Island. Let’s keep going.” – Governor Gina M. Raimondo

The panel portion of the morning was lead by Jeff Havsy, Chief Economist of CBRE Americas and Managing Director of CBRE Econometric Advisors. Jeff spoke of the recent changes in Rhode Island, the tax policy that passed in December, GDP growth, interest rates, retail sales and global tailwinds. Jeff ended his discussion with five concerns for 2018: inflation, Presidential management style, Brexit, consumer confidence and emerging market debt.

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Andrew Galvin, First Vice President, spoke of the Rhode Island Office market trends. He stated that downtown office buildings that perform well have walkability to public transit, and suburban office buildings that perform well have high parking ratios. Jeff chimed in and stated that landlords need to keep in mind that the way we transport individuals will change (self-driving cars, ride share). Therefore, landlords need to think of short-term temporary solutions for parking. Andrew additionally spoke of the necessity for Rhode Island landlords to attract and retain talent from the local universities and colleges.

“Downtown vacancy is at 11.9% and is down for the third straight year… On the suburban side, in aggregate, the suburban vacancy rate is 12.4%, which is down from a high in 2009 of 25.5%” – AG

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“In the last 60 months in the Financial District, rents have increased 13.4%, or nearly 2.7% per year on average” – AG

Capital Markets 

Alden Anderson covered the Rhode Island Capital Market trends, stating that “Industrial is a very desirable asset class today for investment if the buildings fit key design parameters of easily accessible and clear height in excess of 20-24’.”

Investors are noticing Rhode Island. Alden has observed investors focusing on areas with millennials, amenities and the live-work-play environment. The market is starting to get validated by transactions taking place and big brand name companies coming to Rhode Island. 

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Tom Barry, Vice President, covered the Rhode Island Industrial market, stating that, “a major theme of the past year was the continued growth of the manufacturing sector, which continues to account for a higher percentage of transactions than warehouse space.” Nationally from 2012-2017, ceiling height and square footage increased for the average warehouse space, which Rhode Island has a limited supply of. While speculative construction has not happened, there are plans in the works. Tom mentioned that he expects big box retail stores to come on the market, which could be a creative way for developers to create industrial space. Jeff chimed in and stated that retail centers converting to an industrial use (distribution or last mile) has been a national trend.

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“The Rhode Island Industrial market in 2017 continued to exhibit solid prospect activity and deal execution bringing the vacancy rate to another record low of 1.72%.” – TB

To Mayorwrap up the presentation, we were fortunate to welcome Providence Mayor Jorge Elorza, who left us with this solid takeaway, “It’s impossible to have a strong and vibrant Rhode Island without a strong and vibrant capital city… and vice versa.”

Visit the CBRE/New England Vimeo page for an audio clip from the event.

Did you miss our Boston or Hartford Market Overview recap? Click here to catch up.

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Just Released: CBRE/NE 2018 New England Market Outlook

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Building Today for a Stronger Tomorrow: CBRE Cares Year in Review

CBRE Cares-NE Logo_342CBRE Cares New England continues its mission “to build a foundation for our community by facilitating a variety of volunteer and giving opportunities that have a significant effect on the lives of families in need—building today for a stronger tomorrow.” Designed to harness the aggregate potential of CBRE/New England’s over 28 MSF property management portfolio, events are coordinated to engage both CBRE/NE tenants and employees. Over the past year, CBRE Cares New England organized the following charitable activities:

Food Drive: Over 2,600 Pounds of Food Collected

2017_Food Drive_CaptivateIn March, CBRE Cares New England facilitated its eighth annual Food Drive to collect and distribute non-perishable goods to families in need across New England, partnering with The Greater Boston Food Bank, Loaves & Fishes, Rhode Island Community Food Bank and New Hampshire Food Bank. Over the course of just two weeks, CBRE Cares New England collected a total of over 2,600 pounds of food donations, amounting to 10,400 meals created!

A capping off event took place on April 12th, atfood-drive-3.jpg the Greater Boston Food Bank (GBFB) in Boston, Massachusetts where CBRE/NE volunteers joined a host of directors and volunteers to help achieve GBFB’s mission of ending hunger in eastern Massachusetts. Over the course of the day, CBRE/NE volunteers helped sort 19,450 pounds of food making it possible for the GBFB to supply over 14,000 meals to those in need.

An additional capping off event took place on March 9th at the Foodshare Bloomfield, Connecticut food bank. Foodshare receives food donations from the food industry and sorts and distributes the donations to 300 food pantries, community kitchens, homeless shelters and other partner programs. The CBRE/NE volunteer group sorted 8,100 pounds of food that was donated by Stop & Shop. This food would have otherwise been thrown away.

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Footwear Drive: Over 1,000 Pairs Collected

CBRE Cares Shoe drive_captivatePartnering with the Massachusetts, Connecticut and Rhode Island Goodwill Chapters as well as Children’s Friend in Rhode Island, CBRE Cares New England facilitated its first Footwear Drive. Over 1,000 pairs of socks and new or gently used shoes were primarily distributed to local Goodwill chapters across New England. The network of 162 independent, local Goodwills in the United States and Canada offers customized training and services for individuals who want to find a job, pursue a credential or degree, and strengthen their finances. Donations were also given to Children’s Friend of Rhode Island, Rhode Island’s oldest child welfare organization and a leading provider of child welfare, family support, mental health and child development services.

Iphoto4n combination with this drive, on May 25th, CBRE/NE employees volunteered their time at the Cradles to Crayons Giving Factory. Volunteers enjoyed a day of fun and service as they created “KidPacks” to help Cradles to Crayons work towards their mission of providing basic necessities for children in need. In addition to putting together these packages of clothing, toiletries, bedding, diapers, books and more for individual children, volunteers spent the second half of the day sorting children’s clothing donations. At the end of the day, 270 children in need were helped by our team!

Hartford Area Habitat for Humanity: Construction Started on Six Houses

On June 29th, CBRE/NE employees volunteered at the Hartford Area Habitat for Humanity. CBRE/NE volunteers were tasked with framing and doing preliminary stage construction tasks. This project, part of a 22-unit development on South Marshall Street, has been completed, and in December six new homeowners received keys to their new homes. Unknown-1

Back-to-School Supplies Drive: Over 3,500 Items Collected

By providing kids with the tools so many take for granted, our Back-to-School Drive allows kids to focus on what’s really important—their schoolwork. CBRE Cares New England partnered with a host of Boys & Girls Clubs around New England to collect and diCBRECares_BackToSchoolDrive_InternalScreen(landscape)stribute 1,780 supplies for less fortunate children. The mission of Boys & Girls Clubs of Boston is to help young people, especially those who need us most, build strong character and realize their full potential as responsible citizens and leaders. In addition, over 1,800 items were collected and used to fill more than 30 backpacks with back-to-school supplies in partnership with the Capital Region Education Council, who working with and for its member districts, has developed a wide array of cost-effective and high-quality programs and services to meet the educational needs of children and adults in Greater Hartford. CBRE/NE employees and tenants pulled off our fourth Back-to-School Drive without a hitch and just in time for the first day of school!

4In conjunction with this drive, on September 18th volunteers partnered with Boston Cares leaders once again, but this time to build twin bed frames that were distributed through agency partners to families transitioning out of homelessness in Greater Boston. In total nine beds were constructed from start to finish by our team of volunteers. Then on October 6th volunteers set out once again to give back, this time for a maintenance and beautification project at the Boys & Girls Clubs of Boston Charlestown location. Volunteers were put to work around the Boys & Girls Club doing various projects such as painting, gardening and cleaning, all in support of the organization’s commitment to helping the young people in the community succeed academically, live healthy lifestyles and practice good citizenship.

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Toys for Tots/Gift Giving Drive: Over 1,600 Toys Collected

During the 2017 holiday season, CBRE Cares New England organized a Toys For Tots/Gift Giving Drive to allow local disadvantaged children and families to experience a happy holiday and provide them with a message of hope. Donation stations were established in all participating buildings where employees and tenants dropped off new gifts to benefit local kids in need. Over 1,600 gifts were collected on behalf of the U.S. Marine Corps Reserve Toys for Tots Foundation and other local charities.

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It’s almost time to say goodbye to our 2017 Summer Interns

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Recap: 2017 CBRE/New England – Rhode Island Market Overview

Next up in our New England Market Overview recap series, we cover the Ocean State. Our team down in Rhode Island presented on the state of the downtown, suburban and industrial markets. Alden Anderson, Senior Vice President/Partner, led the presentation by introducing Governor Gina M. Raimondo, who provided a compelling presentation on the status of the Rhode Island economy.

The first speaker to follow was Andrew Galvin, First Vice President/Partner, who highlighted the Downtown Providence and Suburban Rhode Island Office markets.

“Major themes for the Providence Office market include the continued progress and or delivery of several major projects; the continued growth in the multifamily space; the many newly proposed development projects attracting and growing an exciting tenant base; and the existing fundamentals in the market.” – AG

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2016 Development Progress

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“We’ve had the continued conversion of obsolete office buildings to housing stock, which has further tightened the available supply in the office market. The current downtown market vacancy rate sits at 13.4%. To put some context to this, since 2013, 11 office buildings totaling 544,000 SF have been converted to residential uses.” – AG

2017 Development Pipeline

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“These referenced projects, many of which have commenced construction or will break ground in 2017, total several hundred million dollars in in new development.” – AG

cbre-ne_rhodeislandmarket2017_blog05Rhode Island Suburban Office

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“Since 2012 there has been approximately 675,000 SF of positive absorption. Nearly 240,000 SF of that amount occurred in 2016. Similar to 2015, there were not market-changing types of large transactions, but 2016 represents continued improvement in the suburban market.” – AG

Rhode Island Industrial Trends

Tom Barry, Vice President, covered the Rhode Island Industrial market, stating that, “flexibility, creativity and persistence were all required to satisfy industrial needs in 2016.”

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“Pricing has gradually increased for leasing as well as properties sold in the range of 3-5%, but has not increased as much as the declining vacancy would seem to imply.” – TB

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“Companies searching statewide for alternatives, no longer can concentrate on a specific geographic area to solve their needs. The search radius continues to get wider and wider in search of viable options.” – TB

Our industrial forecast for the coming year includes:

  • The shrinking supply of quality product will continue to present limited options and will call for creative solutions from the available existing inventory along with exploring new construction as an option.
  • Both tenants and buyers will need to be opportunistic and ready to act once an opportunity presents itself.
  • Many tenants will be forced to renew leases at their present location given the limited options.
  • A good tenant and landlord relationship has become more important given potential renewal rather than losing their space and being forced to settle for a less desirable solution as well as a different geography, which may affect the labor force.

To wrap up the presentation, we were fortunate to welcome back CBRE’s Spencer Levy, Head of Americas Research, for his take on the state of the capital markets in Rhode Island.

Stay tuned for our next post, where we will cover this year’s CBRE/NE Hartford Market Overview. Did you miss our Boston Market Overview recap series? Click on the following link to catch up.