HUNTSVILLE, Alabama – Graham & Co, Inc., a full-service commercial real estate firm in Huntsville, has released its 2013 market survey showing an overview of the city’s office, retail and industrial occupancy rates.

Last year, Huntsville’s industrial vacancy rate fell from 12.3 percent to 11.6 percent, below the national 12.8 percent average, the report shows. The national average dropped 30 basis points in the fourth quarter of 2012, and has dipped 10 consecutive quarters since the rate spiked at 14.6 percent in early 2010.

For the first time since 2009, the report shows an absorption of industrial inventory in Huntsville due to more leasing by Jetplex-area defense firms, which are filling buildings previously operated by automobile companies. Despite new construction “for large industrial buildings being almost nonexistent” last year, the survey shows building for facilities in the 10,000-15,000 square foot range increased.

The Jetplex Industrial Park, which embodies 58 percent of the Huntsville industrial market and is the city’s largest industrial base, saw a 15.2 percent vacancy rate, a slight decrease from 2011′s 16.2 percent. In north Huntsville, the industrial vacancy rate fell to 8.1 percent from 10 percent in 2011, while the Chase Industrial Park saw 1.3 percent vacancy – down from 2.1 percent the previous year.

Vacancies in the Huntsville office market jumped from 8.7 percent in 2011 to 12.6 percent, the report said. Concerns about sequestration and a lack of defense spending hurt Cummings Research Park, which saw an increased vacancy rate of 8.9 percent from 4.5 percent a year earlier. Multi-tenant vacancy at the park rose from 9.6 percent in 2011 to 17.96 percent last year.

The report shows more than 2 million square feet of new construction on Redstone Arsenal for Base Realignment and Closure (BRAC) also impacted Cummings. The Huntsville vacancy rate is below the national 15.4 percent average, which fell from 16.4 percent in 2011. Experts believe the U.S. office sector will show slow improvements this year, the report said.

Downtown Huntsville vacancies rose slightly to 21.98 percent from 21.5 percent in 2011. In the retail sector, vacancy closed 2012 at 9.1 percent, down from 9.9 percent the following year. Despite continued backfilling of vacant retail spaces in Huntsville, the report shows more than 450,000 square feet of new retail development on or near 100 percent occupancy contributed to the dip in vacancy last year.

Jones Valley/Hampton Cove is the best performing retail market citywide at 2.53 percent vacancy, while the University West submarket has the highest vacancy rate at 14.83 percent, according to the report. National retail vacancy levels fell to 10.4 percent from 11 percent in 2011, showing signs of retail recovery.

[ Read article at al.com ]

To support the growth of its operations, Hose Power USA has relocated to a 25,000-square-foot industrial space at 3969 Pinson Valley Parkway.

EGS Commercial Real Estate agent Bill Sanders represented Hose Power USA and John Coleman with Graham & Company represented the landlord.

Hose Power USA, which is headquartered in Orange Park, Fla, specializes in hydraulic and industrial hose distribution, sales and services.

The new location allows the company to offer its customers a walk-in counter service where the customers can have their hose assemblies and repairs completed on-site while they wait.

[ Read article at bizjournals.com]

Flowers Foods Inc. is wading through the government paperwork to buy Hostess Inc.’s bread-related assets, including the Merita bakery building near Railroad Park.

But what you may not know is that another Hostess Inc. asset, almost 4.5 acres worth, is also up for sale next to the bakery.

Hostess’ bankruptcy court judge has authorized Illinois-based Hilco Real Estate LLC to sell the entire 1200 block of First Avenue South, which abuts the railway running parallel to Railroad Park, and the quarter-block on First Avenue and across 13th Street South next to the Merita bakery.

According to the Jefferson County Tax Assessor’s Office, the combined appraised values of the properties is about $2 million.

Hilco has tapped Sonny Culp of Graham & Co. LLC as its local broker, and has set a deadline of June 12 for sealed bids on the property, which was used for support operations for the bakery.

“It’s a unique opportunity given all of the acquisition investment that has occurred and will occur in the area,” Culp said.

The property is a block away from both Railroad Park and the new Birmingham Barons ballpark, Regions Field, and has already drawn interest from developers.

The challenge for buyers will be the timing. Real estate investors typically build up investment funds over time with a tenant already committed, he said. But in this case, there’s not that kind of time available.

“This is going to be a more investment-driven operation,” he said.

But, despite that challenge, he said the dividends could be big. The court-ordered sale will likely be at a discount, and the property will become more valuable as the area continues to see development.

“With all the development coming into the area, you’d think the (property) values are going to go up,” Culp said.

[ Read article at bizjournals.com]

BIRMINGHAM, Alabama — Birmingham commercial real estate firm Graham & Co. has announced its latest transactions, which include a new industrial space for a commercial coffee and espresso machine sales and service company.

Espresso Tech Solutions purchased a 7,000-square-foot industrial building at 2800 Richard Arrington Boulevard. Jordan Tubb represented the purchaser and LAH Real Estate represented the seller.

In other deals, National Center for Pain Management LLC purchased a 10,417-square-foot medical office in Bessemer. Graham & Co.’s Michael Lawley represented the seller, First Financial Bank, and Weaver Land represented the purchaser.

Read on for more of the firm’s recent transactions:

Alabama Telco Credit Union sold its 30,000-square-foot office building at 1849 Data Drive. Walter Brown represented the seller and Highland Realty Services represented the purchaser, Hunter Trace LLC.

ECD Properties LLC purchased the 14,000-square-foot former Rucker Lumber building at 1700 22nd Avenue. Jack Brown represented the seller and Ogden Deaton represented the purchaser.

DHS Properties purchased the 8,758-square-foot office building at 158 Business Center Drive from Edmonds-Hyde Investments LLC. Sam Carroll represented the seller and RealtySouth represented the purchaser.

Hatch Mott MacDonald leased 7,084 square feet at 1800 International Park. Walter Brown represented the tenant and CBRE represented the landlord.

Birmingham Allergy & Asthma Specialists PC leased 2,921 square feet at Beaumont Village. Sam Carroll represented the landlord and EGS Commercial Real Estate, Inc. represented the tenant.

Hackbarth Delivery Service, a transportation, warehousing and logistics company, leased 10,000 square feet of office/warehouse space at Cahaba Valley Business Park. Jordan Tubb represented the tenant and EGS Commercial Real Estate represented the landlord.

T. Mark Ricketts, MD, LLC leased 6,935 square feet at Vestavia Hills City Center. Dan Lovell represented the landlord and Veritas Commercial Real Estate represented the tenant.

Crossmark, a sales and marketing services company, leased 8,000 square feet at Cahaba Valley Service Center. Ogden Deaton represented the landlord and Swearingen Realty Group LLC represented the tenant.

DBIW LLC, a commercial cabinet company, leased 7,500 square feet at 115 West Oxmoor Lane. Jordan Tubb represented the landlord and C. Jones Realty represented the tenant.

American Medical Response leased 5,677 square feet at Grandview II. Brad Jones represented the landlord while Walter Brown and Jones Lang LaSalle represented the tenant in the transaction.

Tubelite Company Inc., a sign and screen printing business, renewed its lease of 27,400 square feet of industrial space at 3636 7th Avenue North. John Coleman handled the transaction.

[ Read article at al.com ]

Kamtek, a supplier to Mercedes-Benz U.S. International, purchased the facility in October 2012 and plans to eventually create up to 150 jobs at the facility, according to the Birmingham Business Alliance.

Why it matters

It represents a $196 million capital investment, new jobs and renewed life for the former Del Monte facility after Isuzu’s plans at the site stalled in the recession.

Notable Numbers

$6.1M – Amount Kamtek paid to purchase the distribution warehouse facility.

293K – Square footage of the property, which was formerly home to Del Monte.

148 – Number of new jobs the auto supplier expects to create at the facility.

Key Players

Broker: Jack Brown and Sonny Culp of Graham & Co.

Contractor: Wieland Davco

Tenant: Kamtek, a division of Magna International

[ Read article at bizjournals.com]