Industrial/Flex-Tech Ind strial/Fle Tech

Dani Kramer, CCIM

Manufacturing Employment
Manufacturing Employment
State of Idaho vs. Boise MSA
63,000

53,000

Number o of Jobs

43,000 Boise MSA Mfg. Jobs Idaho Statewide Mfg. Jobs 23,000 23 000

33,000

13,000

3,000 2003 2004 2005 2006 Year
Source: http://lmi.idaho.gov/Employment/NonfarmJobsCES/tabid/760/Default.aspx

2007

2008

2009

Jan‐10

Manufacturing Employment
Manufacturing Employment CDA MSA
4,800 4,600

4,400

Number of f Jobs

4,200 CDA MSA 4,000

3,800

3,600 2003 2004 2005 2006
Year

2007

2008

2009

Source: http://lmi.idaho.gov/Employment/NonfarmJobsCES/tabid/760/Default.aspx

Manufacturing Employment
Manufacturing Insight
• American manufacturers are responsible for 2/3 of research and development investment in the United States; nearly 80 percent of all patents filed come from the manufacturing sector • American manufacturers are the leading buyers of new technology in the United States. • American manufacturing directly employs 14 million Americans and creates 8 million additional jobs in other sectors. • American manufacturing is the largest single contributor the U.S. economy.
Source: Alliance for American Manufacturing

Manufacturing Employment
Job Sector Employment Effect on Economy
Job Se ector ‐ For Every 1 100 Jobs

Personal & Service

Retail

Industrial/Manufacturing 0 100 200 300 400 500

Additional Jobs Created
Source: Alliance for American Manufacturing

Industrial Development
2009 Construction Costs
• All Construction Materials 2009 – Down 6% • Lumber Materials – Down 6% • Structural Steel Products – Down 9% • Concrete Materials – Up 1% • Al i Aluminum Sheet – D Sh t Down 17%

Speculative construction in Kootenai County was virtually non-existent in 2009 y

Source: US Department of Labor, Producer Price Index, Contributed By: BNi® Building News

Local Industrial Owner/User Development

Local Industrial Owner/User Development

Local Industrial Owner/User Development

Local Industrial Owner/User Development

3-V Plumbing

EXPO Co O Commerce Park e ce a at Post Falls Starwest Satellite

Local Industrial Owner/User Development
Parkwood Business Properties • Developed for AIS • 54,000 SF

Local Industrial Owner/User Development
Western States CAT
• Opened in July 2009 • Facility size of 55,765 SF • R Room for future expansion f f t i • Environmentally efficient building design

Local Industrial Owner/User Development
Warren K Industrial Park, Hayden Carissa Ct C i Ct.

Highway 95

Local Industrial Owner/User Development
Examples ~ ½ Owner Occupied and ½ for Lease

3,000 SF for Lease, Innovation Way at EXPO in Post Falls

2,750 SF for Lease Seltice Way, Post Falls Way

Industrial Market – Kootenai Vacancy Report

2000000

3.2%

Ne et Usab ble SF

1500000

10.2% 10 2%
1000000

9.6% 7.1%

Vacant SF Net Usable SF

500000

0

Industrial Market – Kootenai Vacancy Report

2009 Industrial Market Rents
City Rental Rate Averate Newer Older ld
$0.40  $0.50 $0.40 ‐ $0.50 $0.35 ‐ $0.45 $0.35 ‐ $0.45 $0.30  $0.40 $0.30 ‐ $0.40 $0.35 ‐ $0.45 $0.28 ‐ $0.35

Change from 2008

Post Falls Post Falls Coeur d'Alene Hayden

• All rates quoted monthly • Modified Gross = Landlord pays for property taxes and building fire insurance. The Tenant typically pays for all other operating expenses. expenses

2009 Industrial Sales

4381 W Seltice Way, Post Falls • 10,791 SF A • 5 Acres • Sold for $850,000

674 N Pleasantview Rd, Post Falls • 5,200 SF • 2.78 Acres • Sold for $475,000

2009 Industrial Sales

11680 Tracey Road, Hayden Road • 4,800 SF • 0.58 Acres • Sold for $350,000

2009 Industrial Sales

11496 N Carissa Ct, Hayden • 4,800 SF • 0 59 Acres 0.59 A • Sold for undisclosed price

11522 N Carissa Ct, Hayden • 4,800 SF • 0 59 Acres 0.59 A • Sold for undisclosed price

Looking Forward to 2010 - Industrial Market
•Solid Activity in 2010 •Lower rental rates •Vacancy should begin to decrease heading into 4Qt 2010 •Increase in the number of industrial properties for sale •Great opportunity for g Tenants looking to own

Thank You
For Slides • Email dani@ccim.net • Vi it www.cbcsr.com Visit b