2012 Gulf Coast Real EstateSummit

Industrial Market OverviewMobile/Baldwin CountyJeremy B. Milling, CCIM

White-Spunner & Associates, Inc.

Industrial Market Overview

Mobile/Baldwin County

Jeremy B. Milling, CCIMWhite-Spunner & Associates, Inc.

Mobile County-Higher Concentration of Industrial Space• Mobile River Industrial Park (Jacintoport)• I-65/Beltline Service Road (East and West)• Highway 43 Corridor• Brookley Aeroplex • Lakeside Drive/Halls Mill Road Corridor• Rangeline Road/Highway 90/Bellingrath Road

Mobile County-Higher Concentration of Industrial Space• Mobile River Industrial Park (Jacintoport)• I-65/Beltline Service Road (East and West)• Highway 43 Corridor• Brookley Aeroplex • Lakeside Drive/Halls Mill Road Corridor• Rangeline Road/Highway 90/Bellingrath Road

More segmented within the individual municipalities• Bay Minette-Industrial Park• Loxley- North of I-10 along Highway 59 and CR 43• Robertsdale-Industrial Park• Fairhope-Industrial Park• Foley-Industrial Park• Gulf Shores-Industrial Park

More segmented within the individual municipalities• Bay Minette-Industrial Park• Loxley-North of I-10 along Highway 59 and CR 43• Robertsdale-Industrial Park• Fairhope-Industrial Park• Foley-Industrial Park• Gulf Shores-Industrial Park

Office-Warehouse• (±) 5,000 square feet up to +/-50,000 square feet• Minimal office space (10-50%) depending on

building size and use• (±) 14’-+/-30’ eave height with average of • (±) 18’-20’• Masonry or metal construction-primarily metal in

our market• Rental Rate Range: (±) $4.50-$8.50 p.s.f.

• (±) 5,000 square feet up to (±) 50,000 square feet• Minimal office space (10-50%) depending on

building size and use• (±) 14’- (±) 30’ eave height with average of

(±) 18’-20’• Masonry or metal construction-primarily metal in

our market• Rental Rate Range: (±) $4.50-$8.50 p.s.f.

• Office-Warehouse (example)• Office-Warehouse (example)

Bulk Warehouse/Distribution• (±) 50,000 square feet up to (±) 350,000 square

feet• (±) 10% or less of office area• Eave height of 20’ plus• 50’ column spacing• Tilt up or metal construction• Rental Rate Range: (±) $1.50-$3.50 p.s.f.

• (±) 50,000 square feet up to (±) 350,000 square feet

• (±) 10% or less of office area• Eave height of 20’ plus• 50’ column spacing• Tilt up or metal construction• Rental Rate Range: (±) $1.50-$3.50 p.s.f.

• Bulk Warehouse/Distribution-Johnson Development Building• Bulk Warehouse/Distribution-Johnson Development Building

• Bulk Warehouse/Distribution-Keyport Warehousing (Baldwin County)

• Bulk Warehouse/Distribution-Keyport Warehousing (Baldwin County)

Flex Space• Greater amount of office space with minimal

warehouse• Typically masonry construction• Located along higher traffic arteries within the City• Two examples: Dauphin Center, Gateway Center

West• Rental Rate Range: (±) 10.00-$13.00 p.s.f.

Greater amount of office space with minimal warehouse• Typically masonry construction• Located along higher traffic arteries within the city• Two examples: Dauphin Center, Gateway Center

West• Rental Rate Range: (±) $10 - $13 p.s.f.

• Flex Space-Gateway Center West• Flex Space-Gateway Center West

Industrial Product Types

• Gateway Center West (Rear View)• Gateway Center West (Rear View)

Industrial Land•Inland Sites

• Typically (±) 1 acre and greater• Prices range from (±) $20,000 per acre up to • (±) $200,000 per acre ($4/s.f.)

•Waterfront Sites• Deep water: located along the Mobile River or Theodore

Industrial Canal• Barge Sites: located along small rivers or bayous with

average maintained depths of (±) 12’

• Inland Sites• Typically (±) 1 acre and greater• Prices range from (±) $20,000 per acre up to

(±) $200,000 per acre ($4/s.f.)• Waterfront Sites

• Deep water: located along the Mobile River or Theodore Industrial Canal

• Barge Sites: located along small rivers or bayous with average maintained depths of (±) 12’

Overview• (±) 15,000,000 square feet• (±) 3,000,000 square feet available• (±) 18% vacancy rate

Vacancy Rate

7%17%

23% 21% 18%

2007 2008 2009 2010 2011

Overview• (±) 15,000,000 square feet• (±) 2,750,000 square feet available• (±) 18% vacancy rate

Overview (cont’d)• Office Warehouse Space

• Average Asking Price: (±) $5.50 per s.f.• Average Lease Price: (±) $4.80-$5.00 per s.f.

• Bulk Warehouse/Distribution Space• Average Asking Price: (±) $2.50-$3.50 per s.f.• Average Lease Price: (±) $1.50-$3.00 per s.f.

• Flex Space• Average Asking Price: (±) $11.50 per s.f.• Average Lease Price: (±) $10.00 per s.f.

Overview (cont’d)• Office Warehouse Space

• Average Asking Price: (±) $5.50 per s.f.• Average Lease Price: (±) $4.80-$5.00 per s.f.

• Bulk Warehouse/Distribution Space• Average Asking Price: (±) $2.50-$3.50 per s.f.• Average Lease Price: (±) $1.50-$3.00 per s.f.

• Flex Space• Average Asking Price: (±) $11.50 per s.f.• Average Lease Price: (±) $10.00 per s.f.

• Unknowns

• Employment

• Election Year Effect

• Financing

• Unknowns

• Employment

• Election Year Effect

• Financing

Probable, but slight, uptick in activity• Continued bargains in the market

Property Location Land Improvements Price

McPhillips Site 301 Yeend St., Mobile 11 acres 41,250 Warehouse $2,375,000

Mobile South Business Pk. 5275 Business Pkwy, Mobile 1.25 acres 5,000 Office-Whouse $217,250

Stagecoach Comm. Pk. 9657 Stagecoach Circle 3 acres 12,600 Office-Whouse $428,250

Probable, but slight, uptick in activity• Continued bargains in the market

• Existing Industries

Company Employees Projected Increase Total

Austal 2,400 1,600 4,000

ThyssenKrupp 1,600 1,100* 2,700*(24 months)

BAE Systems 800 400 1,200

EADS 200 Unknown ?

• Existing Industries

Industrial Future in our Market• Influence of the Port and Mobile Container

Terminal

Industrial Future in our Market• Influence of the Port and Mobile Container

Terminal

Additional Economic Development Tools• Advantage Sites-Virginia Station

Additional Economic Development Tools• Advantage Sites-Virginia Station

Expansion of the Panama Canal• Benefits to our Region

Expansion of the Panama Canal• Benefits to our Region

Parting Comments• 2011: Larger space faired better than smaller

office-warehouse product• 2012: Continued trend of 2011 with possible

increase in activity • EADS• Shipbuilding in Mobile on the Rise

• 2014 Prediction• Panama Canal Expansion• Intermodal Yard Completion

Parting Comments• 2011: Larger space faired better than smaller

office-warehouse product• 2012: Continued trend of 2011 with possible

increase in activity • EADS• Shipbuilding in Mobile on the Rise

• 2014 Prediction• Panama Canal Expansion• Intermodal Yard Completion

Special Thanks To The Following• Lorrie Gaillard, Baldwin Transfer Company, Inc.• Mac Taul, Merchants Transfer Company, Inc.• Jimmy Lyons, Alabama State Port Authority• Brian Harold, Mobile Container Terminal LLC• Troy Wayman, Mobile Area Chamber of Commerce• Josh Thornton, Baldwin County Economic Development Alliance• Andy Halligan, Johnson Development

Special Thanks To The Following• Lorrie Gaillard, Baldwin Transfer Company, Inc.• Mac Taul, Merchants Transfer Company, Inc.• Jimmy Lyons, Alabama State Port Authority• Brian Harold, Mobile Container Terminal, LLC• Troy Wayman, Mobile Area Chamber of Commerce• Josh Thornton, Baldwin County Economic Development Alliance• Andy Halligan, Johnson Development