Ogden Industrial Parkastro.ngacres.com/htmlemails/jheaton/ogden_industrial_park_1330w… · Ogden Industrial Park Multi-Tenant Industrial Investment 1330 West 3300 south ogden, ut

Ogden Industrial Park

Multi-Tenant Industrial Investment 1330 West 3300 south ogden, ut

Jeff Heaton, CCIM, [email protected]

Eli [email protected]

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376 East 400 South, Suite 120 l Salt Lake City, Utah 84111Offi ce 801.578.5555 l Fax 801.578.5500

I. Confi dentiality Agreement

II. Executive Summary

III. Financial Summary

lV. Property Photos

V. Property Highlights

Vl. Site

VII. Area Map

VIIl. Business Parks Map

IX. Tenant Profi les

X. Recent Comparables

XI. 2014 Year End Market Report

Table of Contents

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I. Confi dentiality Agreement

Newmark Grubb ACRES (hereafter ACRES) has been engaged as the exclusive agent and representative of the Owner. No contacts shall be made by any prospective purchaser or agents to the Owner, it’s executives, personnel, or related entities.

This Investment Offering Brochure is a solicitation of interest only and is not an offer to sell the property. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest to purchase the Property and expressly reserves the right, at its sole discretion, to terminate discussions with any entity at any time with or without notice. The Owner shall have no legal commitment or obligation to any entity reviewing the Investment Offering Brochure or making an offer to purchase the Property unless and until the Owner executes and delivers a signed Purchase Agreement on terms acceptable to the Owner, at Owner’s sole discretion. By submitting an offer, a prospective purchaser will be deemed to have acknowledged the foregoing and agrees to release the Owner from any liability with respect hereto.

The enclosed materials are being provided solely to facilitate the prospective purchaser’s own due diligence for which the purchaser shall be fully and solely responsible.

Neither ACRES nor the Owner make any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein, and nothing contained herein shall be relied upon as a promise or representation as to the future performance of the Property. This Investment Offering Brochure may include certain statements and estimates by ACRES with respect to the projected future performance of the Property. These assumptions may or may not be proven to be correct, and there can be no assurance that such estimates will be achieved. Further, ACRES and the Owner disclaim any an all liability for representations or warranties, expressed or implied, contained in or omitted from this Investment Offering Brochure, or any other written or oral communication transmitted or made available to the recipient. The recipient shall be entitled to rely solely on those representations and warranties that may be made to it in any fi nal, fully executed, and delivered Purchase Agreement between it and the Owner.

The information contained herein is subject to change without notice and the recipient of these materials shall not look to the Owner or ACRES nor any of their offi cers, employees, representatives, independent contractors, or affi liates, for the accuracy or completeness thereof. Recipients of this Investment Offering Brochure are advised and encouraged to conduct their own comprehensive review and analysis of the Property.

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Il. Executive Summary

Overview

The property at 1330 West 3300 South is situated in the Ogden City Industrial Park, a mature park, easily accessed from 1-15 and adjacent to Ogden’s airport. The tilt-up concrete building was constructed in 1982 by Newell Rubbermaid (NYSE: NWL) as a regional manufacturing plant and warehouse facility for Levolor, a division of Newell Rubbermaid (NYSE: NWL) and manufacturer of windowcoverings. In 2003, Levolor vacated a portion of the building but continued to lease 100,000 SF in Bay 3 through December 2010. Autoliv (NYSE: ALV), one of the largest manufacturers of seat belts and airbags, leased an additional 41,000 SF through February 2011. Both Newell Rubbermaid and Autoliv have a BBB+credit rating. Furthermore, Autoliv has committed to additional 73,000 square footage (currently under construction) via a new 10 year lease.

Investment Highlights

Strong National credit tenants: Newell Rubbermaid and Autoliv - BOTH publicly traded

Long-term, triple net leases

Strategic infi ll location

Close to Odgen-Hinckley Airport

Situated in an industrial park setting

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IlI. Financial Summary

Financial Summary

Purchase Price $16,500,000 Price/SF $62.40 PSF CAP Rate 6.6%

Property Profi le

Address 1330 West 3300 SouthOgden, UT 84401

Parcel # 15-474-0001 Type Manufacturing / Industrial Building Size 188,568 SF (258,902 SF After Expansion) Lot Size 22.85 Acres % Occupied 100% Year Built 1981 Zoning M-2: Heaving Manufacturing (Ogden City)

Rent Roll

Tenant SF LCD LED Rate / Month NNN

Annual(Projected) Options Notes

Autoliv ASP, Inc. - Existing 85,072 2/01/2005 4/30/2020 $0.2468 $252,000.00 1-7yr option 10% increase every 5 years

Autoliv - New Addition 73,830 8/31/2015 8/31/2025 $0.4900 $434,120.40 none 10% increase every 5 years

Newell Window Furnishings, Inc*. 100,000 12/18/2003 12/31/2020 $0.3300 $396,000.00

1-5 year option with

10% increase

3 year out clause; 1 year rent,

18 month notice

Totals 258,902 $0.3456 $1,093,880.00

* Currently Under Negotiation

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lV. Property Photos

EXPANSIONUNDER

CONSTRUCTION

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• Total SF: 188,568 (258,902 SF After Expansion)

• Located in Ogden Industrial Park

• 18’ Clear Height

• HVAC: Evaporative Cooled Warehouse

• Close Proximity to Ogden Airport

• Excellent Access to I-15

• Fourteen (14) Dock High Doors

• Nine (9) Ground Level Doors

• Column Spacing: 40’x40’

• 21’ Clear Height

• Roof Replaced in 2014

• Additional Parking Being Added with Expansion

• Additional Acreage for Building Expansion

OGDEN CITY COMMUNITY PROFILE

“It’s All Within Reach”

Ogden is located 35 miles north of Salt Lake City and is a 30 minute drive from the Salt Lake City International Airport. It is a city of nearly 90,000 within a larger metropolitan area that extends along the Wasatch Front from Ogden, to Salt Lake City, to Provo. Ogden offers access to all the advantages of a major metropolitan area, but maintains a low cost of business and living, high quality of life, and unparalleled access to the outdoors. In recent years, Ogden has experienced a major renaissance, with the revitalization of its downtown and the growth of many industries. Key industry clusters are outdoor recreation, aerospace/advanced materials and composites, and information technology/software. Ogden offers the benefi t of strong industry clusters, unique assets that support innovation, a young, well-educated workforce, and high-quality, low-cost locations. As a result, many businesses and residents have decided to call Ogden home.

TOTAL WORKFORCE ESTIMATES (GROSS EMPLOYEE POOL)

Ogden is home to a sizeable and well-educated labor force. Within Ogden City, there is a labor force of more than 50,000. The labor force within the Ogden-Clearfi eld MSA is more than 260,000 and the labor force within 35 miles of Ogden (a 40-minute commute) is more than 600,000. In the Ogden-Clearfi eld MSA, approximately 92% of the working-age population has at least a high school degree and 38% has a post-secondary degree.

DEMOGRAPHICS 2011 2016 Est.

Ogden City Population 83,670 94,329 Households 29,631 32,139 Average Household Size 2.74 2.74 Median Age 29.7 30.1 Median Household Income $39,378 N/A

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MAJOR RECENT BUSINESS ANNOUNCEMENTS

• Northrop Grumman is opening a 45,000 square-foot engineering center in Ogden in March 2014. Northrop Grumman will employ 250 computer science and electrical engineers at the Ogden Airport Gateway Center.

• Boeing presented Ogden-based Petersen Inc. with Boeing Supplier of the Year award for the company’s exceptional contributions to Boeing’s overall success during 2012.

• Barnes Aerospace has expanded in Ogden, opening a 50,000 square-foot aviation manufacturing facility at Business Depot Ogden. The expansion, at full capacity, created 210 new, full-time jobs and generated $2.5 million in capital investment.

• ENVE Composites is expanding in Ogden. ENVE manufactures high-end carbon fi ber bicycle components. ENVE’s rims have always been made in Ogden, but recently, ENVE re-shored additional manufacturing operations to Ogden. ENVE is growing rapidly, with plans to add 324 new jobs in Utah by 2019.

• Quality Bicycle Products, a leading distributor in the cycling and outdoor industry, relocated their distribution operations to Ogden in 2011. Located at Business Depot Ogden, QBP constructed an 85,000 square-foot LEED-certifi ed distribution facility that currently employs approximately 100 employees.

• In 2011, Wayfair, formerly CSN Stores, relocated to Ogden, Utah. Wayfair is the third largest online retailer of consumer goods in the U.S. The new 40,000 square foot customer service/sales center will create approximately 850 jobs within the next fi ve years, and an additional 75 jobs through their 100,000 square foot warehouse/distribution center, both currently in operation. There is future potential for a brick-and-mortar retail store.

• The Hershey Company opened a new 592,000 square foot distribution facility in Business Depot Ogden. The new facility created 123 new, full-time jobs and generated approximately $38 million in capital investment.

• Cornerstone Research & Development, Inc., North America’s premier contract manufacturer for nutritional and dietary supplements, entered into a long-term lease agreement with the Boyer Company to construct a 150,000 square foot advanced facility and corporate headquarters at Business Depot Ogden. More than 280 full-time jobs will be relocated to Business Depot Ogden within the next 12 months. The company expects to make additional capital investments in equipment and processes.

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BUSINESS ACCOLADES

• According to Forbes Magazine, Ogden is the 11th best place for business and careers (2014) and the 7th fastest growing city (2014) in the U.S.

• In Business Journals On Numbers Economic Index, Ogden ranked 8th in the U.S. in terms of economic vitality (April 2013).

• Ogden City received a Gold “Excellence in Economic Development” award from the International Economic Development Council in 2012 for its innovative public/private partnership with the Boyer Company to develop and manage Business Depot Ogden.

TRANSPORTATION

Ogden City is strategically located for highway, rail, and air access within the western region and the nation. Ogden is at the crossroads of the CANAMEX shipping corridor. Interstate 15 and Interstate 84 intersect in Ogden and provide access throughout the western United States. Ogden is the historic home of the meeting of the transcontinental railways, and continues to be a national hub for rail traffi c. The Ogden Airport is the second largest airport in Utah, providing commercial fl ights through Allegiant Air as well as general aviation service. The Salt Lake International Airport is a 30-minute drive south on Interstate 15 and is accessible through the FrontRunner commuter rail. The Utah Transit Authority’s mass transit system provides light rail, commuter rail, and bus services along the Wasatch Front.

COST OF BUSINESS

Ogden City offers a very low cost of doing business. Forbes Magazine (2013) ranked Ogden the 29th most affordable city in the U.S. for doing business. Property purchase and lease rates are very low, as are utility costs. Applicable tax rates are summarized below:

Tax Type State Local Total

Corporate Income Tax 5% 0% 5% Property Tax N/A 1.8% 1.8% Personal Property Tax N/A 1.8% 1.8% Personal Income Tax (any amount) 5% 0% 5%

Sales Tax 5.25% 1.6% 6.85%


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Vl. Site

214’

345

’

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Ogden Short Line Railroad

Dated Photo

3300 SOUTH

VI. Site

Ogden-HinckleyAirport

3300 South

San Jose Street3050 South

147 5

Wes

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132 5

West

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Driv

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1400

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Hinck ley Drive

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VI. Site

Ogden-HinckleyAirport

Freeway Access3300 So uth

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1900

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Hinckle y Drive

Midla

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2550 So uth

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Hill Air Force Base

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89 US

89 US

89 US

89 US

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Ogden Hinckley Municipal Airport

193

University

Kaysville

Layton

South Weber

Ogden

Harrisville

Farr West

Plain City

Clearfield

Syracuse

West Point

Clinton Sunset

Hooper Roy

Riverdale

West Haven

2550 North 105

2600 North

2000

Wes

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1250 South 12th Street

20th St.

2nd St.

30th St.

24th Street

Canyon Rd. Ogden Cyn.

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Hinckley Dr.

Riverdale Road

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5500 South 5600 South

1800 North

300 North

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2000

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Gentile Street Oak Hills Drive

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4000 South

3000 North

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Ogden Hinckley Municipal Airport

Hill Field Rd

2200

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M

ain Street

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VII. Area Map

ey Dry D . ey Dr

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VIIl. Business Parks Map

WeberIndustrial Park

Business DepotOgden

OgdenIndustrial Park

FreeportCenter

H i l l A i r F o r c e B a s eHill Air Force Base

84

1547

00W

est

1900

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12th Street

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300 North

1800 No rth

4000 So uth

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A ntelop e Drive

5900

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120 0

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Bluf f Road

Sou thWeb er Dri v e

5500 So uth

Pio neer Roa d

2600 No rth

5600 So uth

20th Street

River da le

R oad

2300 No rth

6000 So uth

1250 So uth

St at eStre et

Harr isvi l le R oad

Weber

Dr ive

21s t Street

1500 No rth

2200 No rth

2600 N or th

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193

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Autoliv is the world’s largest automotive safety supplier with sales to all the leading car manufacturers in the world.We develop, manufacture and market airbags, seatbelts, steering wheels, passive safety electronics and active safety systems such as radar, night vision and camera vision systems. We also produce anti-whiplash systems, pedestrian protection systems and integrated child seats.Our leading market position in automotive safety includes a global market share of approximately 37% in passive safety and more than 20% in active safety.Incorporated in the state of Delaware, Autoliv Inc. is the result of a merger in 1997 of the Swedish company Autoliv AB, and the U.S. company Morton ASP.Autoliv at a Glance (Year-end 2014)- Global sales: $9,240 million- Operations in 28 countries- ~60,000 employees globally- 18 technical centers, more than any other safety restraint

company- Operating income*: $842 million- Operating margin*: 9.1%

- Earnings per share**: $5.93- Annual Production volumes: • Airbags: 132 million• Seatbelts: 143 million• Steering Wheels: 16 million• Restraint Electronics: 17 million• Active Safety Products: 4.7 million

IX. Tenant Profi les

Since the early 1900’s Levolor has been setting the standard in window fashions, design innovation, product quality and customer satisfaction.Levolor, founded in 1914 and synonymous with the 1” mini-blind, remains the most recognized name in custom window coverings today. Levolor continues to offer great blinds and shades solutions in a wide variety of vertical, aluminum and wood blinds; cellular and woven wood shades; and sheer vertical window treatments. Levolor has recently expanded its product offering to include beautiful decorative drapery hardware, distributed nationally through home centers and other retailers.Today Levolor is a division of Newell Rubbermaid. Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with 2011 sales of approximately $5.9 billion and a strong portfolio of leading brands, including Rubbermaid®, Sharpie®, Graco®, Calphalon®, Irwin®, Lenox®, Levolor®, Paper Mate®, Dymo®, Waterman®, Parker®, Goody®, Rubbermaid Commercial Products® and Aprica®.Levolor is located in Atlanta, GA. Newell Rubbermaid is headquartered in Atlanta, GA and employs over 20,000 employees worldwide.Getting involved in our local communities is the cornerstone of who we are. Our mission is to strengthen our communities by investing in programs that matter to our employees and enrich the lives of our consumers, from childhood to adulthood.

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X. Recent Comparables

IDI - 2 Building Sale1730 South 5350 WestSalt Lake City, Utah 84104Price: $25,135,315 ($66.15 PSF)Cap Rate: 6.50%Acres: 16.91Building SF: 380,000Built in 2000

3 Form2300 West 2300 SouthWest Valley City, Utah 84119Price: $7,950,000 ($48.23 PSF)Cap Rate: 7.29%Acres: 10.00Building SF: 164,839Built in 1974

Summit Distribution Center720 South Gladiola StreetSalt Lake City, Utah 84104Price: $13,800,000 ($50.17 PSF)Cap Rate: 7.66%Acres: 14.19Building SF: 275,080Built in 2001

Airport Distribution Center #11760 North 2200 WestSalt Lake City, Utah 84116Price: $14,040,000 ($78.00 PSF)Cap Rate: 6.75%Acres: 11.39Building SF: 180,000Built in 2012

FedEx - Rockefeller FTZ Building E1095 South 4800 WestSalt Lake City, Utah 84104Price: $12,750,000 ($84.83 PSF)Cap Rate: 6.80%Acres: 8.146Building SF: 150,300Built in 2012

NEWMARK GRUBB ACREs

2014 YEAR END UTAH/MOUNTAIN WEST MARKET REPORT

© Newmark Grubb ACRES 2015. All Rights Reserved Newmark Grubb ACRES Year End Report 2014

IndustrialSalt Lake County Market Overview

Property Name Address City Buyer SF Type

Reckitt Benckiser - 1998 South 5070 West 1998 South 5070 West Salt Lake City GI Partners 416,634 Investment Sale

Westport Distribution Center Phase III 6050 West 700 South Salt Lake City IIT 415,872 Investment Sale

Interchange Business Park 2500 South 300 West Salt Lake City Harrison Properties 384,304 Investment Sale

Pacific Landing III 4475 West 700 South Salt Lake City Exeter 4475 West 700 South LLC 345,686 Investment Sale

Summit Distribution Center 720 South Gladiola Street (3400 West) Salt Lake City CIR III-1 REIT 275,080 Investment Sale

Redwood Business Park & Broadbent Investment 2850 South Redwood Road (1700 West) West Valley City IC BP III Redwood Broadbent LLC 195,055 Investment Sale

Notable Transactions

2014 was a banner year for the Bulk Distribution segment of the market, which outperformed all other product types. Of the 4.0 million square feet leased in 2014, Bulk Distribution accounted for over half the total while almost all other product types were below 2013 levels. Across the board, the number of leases completed in 2014 was down from 2013, except for Bulk Distribution, which posted a 40% increase. The increase in Bulk Distribution activity is attributable to pent-up demand due to lack of available supply in 2013. While net absorption was positive at 2.7 million square feet, the supply-constrained market limited absorption resulting in a 17% decrease from 2013. There also remains a strong demand for quality space less than 15,000 square feet, especially in the south end of the valley.

The market dichotomy continued in new construction where Bulk Distribution accounted for 82% of the 1.0 million square feet delivered in 2014, the majority of which was non-speculative. This is in sharp contrast to the industrial buildings under construction at the end of the year. As 2015 begins, there is almost 2.5million square feet of product being built, of which more than 95% was begun on a speculative basis. Spurred by the lowest vacancy rate in six years (3.79%), developers (many new to the Salt Lake County market) continue to acquire land and tilt walls. In response to national e-commerce trends such as omni-channel retailing, many new bulk projects include increased clear heights, wider column spacing, deeper truck courts, higher office/warehouse ratios and increased parking for trailers and employees. The demand for state-of-the-art facilities is being driven by users with an ever-increasing focus on site utilization, material handling intensive warehouse uses, and a desire for reduction of inventory dwell times at dock positions.

Owner users looking to purchase buildings in 2014 had a tough year. Overall, the number of owner user transactions was down 32% and the total square feet sold was down 53% from the previous year. The lack of new and/or quality product available for sale increased competition and pushed the average sale prices up from last year to $65.77 psf. Although this is a four-year high, it is still well below pre-recession levels.

Overall, the Salt Lake County industrial market performed well in 2014 and was limited only by a lack of quality supply. Despite the minor setback, optimism remains strong. In anticipation of new tenants, developers will deliver well over 3.0 million square feet of product (mostly Bulk Distribution) in 2015 and would be wise to scrutinize their underwriting. Industrial land values will continue to rise as prime locations become scarcer. As smaller increment space continues to be absorbed, average rental rates will increase in 2015. Nationally, the driver of demand for warehouse space is switching from the place of production to the place of consumption. The expansion of the Panama Canal will realign U.S. ports and dramatically increase the East Coast’s share of imports. With this increase, as well as the local enhancement to infrastructure (airport expansion, Mountain View Corridor, etc.), Salt Lake City gains importance and will emerge as a much more attractive regional distribution market.

Quick Stats2014

Year Over Year Change

% change

Vacancy Rate 3.79% (146) BPS

Under Construction 2,563,538 133.33%

# of Leases 239 -7.00%

Leased SF 4,005,286 1.14%

Lease Rates $0.39 0.00%

# of Sales 34 -32.00%

Sold SF 974,407 -53.16%

Sales $PSF $65.77 4.10%

© Newmark Grubb ACRES 2015. All Rights Reserved

Industrial Salt Lake County Market Overview

Newmark Grubb ACRES Year End Report 2014

•

•

2009 2010 2011 2012 2013 2014Net Absorption (876,391) 255,572 1,230,899 1,467,042 3,285,892 2,720,590Direct Vacancy Rate 5.37% 5.40% 5.26% 6.19% 5.25% 3.79%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

(1,000,000)

(500,000)

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

Vaca

ncy R

ate

Squa

re F

eet

Net Absorption & Direct Vacancy Rate

5.25% 4.84%3.79%

0.88%0.73%

0.75%

1.27%1.30%

1.33%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%7.40%

6.87%

5.87%

Vacancy Overview

Direct Vacancy % Sublease Availability Contingent (Occupied) AvailabilityYear End 2013 Midyear 2014 Year End 2014




3.93%

2.59%

8.58%

4.71%

6.54% 6.24%

3.77%

2.49%

8.42%

4.03%

4.97%5.59%

3.80%

2.07%

6.94%

3.21% 3.30%

1.13%

0.00%1.00%2.00%3.00%4.00%5.00%6.00%7.00%8.00%9.00%

10.00%

Direct Vacancy by Product Type

Year End 2013

Manufacturing General Purpose Bulk Distribution Medium Distribution Flex Special Purpose

Midyear 2014 Year End 2014

422,8013 Buildings

330,5185 Building

301,8021 Building

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

New Construction Delivered Overview Year End 2014

Speculative Construction Owner User Construction BTS Construction

2,517,538 SF11 Buildings

45,000 SF1 Building

Under Construction Overview Year End 2014

Speculative Construction

Owner User Construction




• Overall lease rate has remained steady for three years in a row.

• At $0.46 Flex lease rates

2009.

2009 2010 2011 2012 2013 2014

Overall $0.37 $0.34 $0.35 $0.39 $0.39 $0.39

Manufacturing $0.41 $0.33 $0.39 $0.43 $0.31 $0.41

General Purpose $0.41 $0.34 $0.34 $0.43 $0.38 $0.41

Bulk Distribution $0.30 $0.32 $0.33 $0.37 $0.38 $0.35

Medium Distribution $0.34 $0.44 $0.37 $0.36 $0.38 $0.41

Flex $0.47 $0.39 $0.40 $0.42 $0.44 $0.46

Special Purpose - $0.34 $0.37 $0.48 $0.58 $0.32

Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014

New Under Construction 286,820 379,674 462,658 595,998 - 493,715 2,245,441 85,267

Delivered 264,317 233,516 750,243 1,149,956 186,800 386,271 59,249 422,801

All lease transaction data exclude renewal transactions.

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

New Under Construction/Delivered Overview

$0.15$0.20$0.25$0.30$0.35$0.40$0.45$0.50$0.55$0.60$0.65

Average NNN Lease Rates




• Total sf leased in 2014

supply.

• Bulk Distribution had the

All lease transaction data exclude renewal transactions.

• Overall leases done

tightening of supply in the market.

• The number of Bulk Distribution leases was at its highest in six years

2013.

Average lease rates are a weighted average and have been grossed down to a “NNN” equivalent. All lease transaction data exclude renewal transactions.

2009 2010 2011 2012 2013 2014Overall 116 219 254 323 257 239

Manufacturing 9 7 7 7 10 9

General Purpose 24 30 25 34 32 28

Bulk Distribution 13 22 28 34 29 41

Medium Distribution 9 18 28 30 31 25

Flex 60 131 153 201 146 130

Special Purpose - 11 13 16 8 4

2009 2010 2011 2012 2013 2014Overall 2,583,393 3,765,221 5,258,977 5,751,069 3,960,083 4,005,286 Manufacturing 541,437 203,138 209,629 280,633 433,624 188,882 General Purpose 203,774 267,691 612,832 345,912 304,385 405,011 Bulk Distribution 1,300,446 1,882,282 2,918,671 3,122,985 1,733,660 2,138,441 Medium Distribution 164,852 275,837 591,163 605,174 515,011 427,033 Flex 370,784 689,777 850,709 1,105,246 857,093 751,631 Special Purpose - 446,496 75,973 275,278 103,876 81,444

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

Leased SF

0

50

100

150

200

250

300

350

Number of Leases




•

years due to demand out

• at its highest in six years showing high demand.

Average sales price PSF is a weighted average and excludes investment sales.

• Total owner user sf sold in 2014 was at its lowest level in four years due to

2009 2010 2011 2012 2013 2014Overall $74.47 $61.76 $58.60 $60.94 $63.18 $65.77

Manufacturing $77.59 $49.05 $54.61 $52.11 $31.20 $50.47

General Purpose $77.54 $59.81 $55.92 $62.04 $64.39 $63.41

Bulk Distribution $65.44 - $57.14 $48.35 $46.93 -

Medium Distribution $99.94 $46.88 $59.68 $41.48 $71.45 $58.30

Flex $64.00 $70.89 $68.72 $67.04 $68.16 $85.99

Special Purpose - $66.20 $66.31 $74.58 $61.79 $69.34

2009 2010 2011 2012 2013 2014Overall 1,355,636 931,910 985,268 1,201,315 2,080,409 974,407 Manufacturing 226,218 344,149 175,465 256,644 1,133,516 270,554 General Purpose 205,016 342,621 476,876 465,154 361,364 278,573 Bulk Distribution 870,275 - 148,747 164,631 269,375 -Medium Distribution 15,580 48,000 15,500 145,919 111,654 238,510 Flex 38,547 158,155 61,572 125,673 89,893 42,087 Special Purpose - 38,985 107,108 43,294 104,007 144,683

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

Owner User Average Sale Price PSF

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

Owner User SF Sold




• Overall numbers of owner user sales were at

• The numbers of Medium Distribution owner user sales were at their highest in six years.

Sale data exclude investment sales.

2009 2010 2011 2012 2013 2014

Overall 8.41% 8.22% 7.64% 7.79% 7.78% 7.61%

Manufacturing - - 7.16% 7.69% 8.88% 7.19%

General Purpose 8.72% 9.71% 9.69% 8.66% 7.30% 7.91%

Bulk Distribution 8.36% 7.91% 7.00% 7.35% 7.76% 7.20%

Medium Distribution 8.14% 8.52% 7.90% 8.20% - 7.29%

Flex 9.88% 8.63% 10.02% 8.41% 8.17% 8.48%

• Demand for quality

available supply.

• their lowest level in six years.

Investment sale data include all investment sales in the state of Utah and exclude owner user sales.

2009 2010 2011 2012 2013 2014Overall 28 44 51 51 50 34



Bulk Distribution 4 0 1 1 2 0Medium Distribution 1 1 1 4 3 5Flex 5 14 7 15 10 8

Special Purpose 0 3 5 3 5 4

0

10

20

30

40

50

60

Number of Owner User Sales

6.00%

6.50%

7.00%

7.50%

8.00%

8.50%

9.00%

9.50%

10.00%

10.50%

11.00%

Industrial Average Cap Rates




2009 2010 2011 2012 2013 2014

Overall 14 16 31 27 19 31



Bulk Distribution 6 3 5 4 5 4

Medium Distribution 1 4 1 1 1 1

Flex 3 2 8 10 5 4

• Total industrial investment sales were at their highest level in six years showing a strong demand.

• 2014 total industrial investment sales


• Total industrial investment dollar volume was at its

years.

• Flex industrial investment dollar volume was the highest in six years.

• Bulk investment dollar volume remained strong

volume.


2009 2010 2011 2012 2013 2014

Overall $57,298,037 $95,694,600 $158,204,120 $138,693,502 $197,136,500 $186,456,331

Manufacturing - - $12,015,088 $50,750,951 $20,355,000 $50,275,600

General Purpose $5,797,000 $1,735,600 $60,723,520 $7,450,000 $41,836,500 $20,101,731

Bulk Distribution $43,858,397 $58,544,000 $64,785,500 $47,016,551 $120,699,000 $64,040,000

Medium Distribution $4,235,000 $10,510,000 $3,357,375 $4,725,000 $2,200,000 $7,950,000

Flex $2,312,640 $3,375,000 $10,122,637 $23,206,000 $13,783,000 $27,376,000

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

Industrial Investment Dollar Volume

0

5

10

15

20

25

30

35

Number of Industrial Investment Sales


Year End 2014 Stats by SF IncrementSF Increment Average Lease Rates Leased SF Average Sale Price PSF Sold SF

0-5,000 SF $0.46 126,113 $72.22 5,377

5,000-10,000 SF $0.37 119,505 $66.40 25,590

10,000-50,000 SF $0.27 258,374 $77.63 221,591

50,000-100,000 SF $0.40 79,815 $- -

100,000 SF + $0.35 567,882 $- -

Building Buyer/Tenant Type SF City

Superior Air Shaw NAPTech, Inc Lease 298,882 Clearfield

Barnes Aeropsace Barnes Aerospace Lease 165,000 Ogden

Wadman Industrial Park Investment Wilder Enterprises Investment Sale 134,350 Ogden

Business Depot Ogden Osprey Packs, Inc. Lease 79,815 Ogden

Notable TransactionsQuick Stats

2014Year Over

Year Change% change

Vacancy 5.92% (286) BPS

# of Leases 64 12.28%


Leased SF 1,151,689 -7.93%

# of Sales 17 -5.56%

Sales $PSF $74.03 31.98%

Sold SF 252,558 -50.92%

Industrial Davis and Weber Counties Market Overview

All lease rates are weighted average NNN rates of all completed leases and subleases. Rates do not include renewals. Sales price per square foot is calculated based upon completed transactions and excludes investment transactions.

81 79

73

86

66

75

81

45505560657075808590

2008

2009

2010

2011

2012

2013

2014

Number of Transactions (Lease & Sale)

$0.30

$0.39

$0.40

$0.32

$0.28

$0.33 $0.35

$0.20

$0.25

$0.30

$0.35

$0.40

$0.45

2008

2009

2010

2011

2012

2013

2014

Average Actual Lease Rates (NNN)

6.38%

10.74%

13.17%11.86%

10.16%

10.85%

6.27%5.92%5.00%

6.00%7.00%8.00%9.00%

10.00%11.00%12.00%13.00%14.00%

2007

2008

2009

2010

2011

2012

2013

2014

Direct Vacancy Rate

Year End 2014

Sublease Availability 0.00%

Occupied Availability 1.78%

Direct Vacancy 5.92%6.27%

9.37%6.27% 5.92%

0.00%2.00%4.00%6.00%8.00%

10.00%12.00%14.00%

Vacancy Overview

Direct Vacancy Occupied Availability Sublease Availability

Year End 2013 Midyear 2014

0.80% 0.21%

1.31% 0.80%

9.37%

$75.41

$83.39

$67.90

$55.57

$59.60

$56.09

$74.03

$40.00

$50.00

$60.00

$70.00

$80.00

$90.00

2008

2009

2010

2011

2012

2013

2014

Average Sale Price PSF


Industrial Utah County Market Overview

Year End 2014 Stats by Product TypeProduct Type Average Lease Rates Leased SF Average Sale Price PSF Sold SF

Manufacturing $0.43 30,771 $61.72 115,288

Warehouse $0.43 102,029 $41.94 114,052

Bulk Distribution $0.32 257,543 $- -

Medium Distribution $0.46 30,320 $66.77 235,215

Flex $0.50 242,928 $84.55 40,715

Building Buyer/Tenant Type SF City

True Science Building TJP, LLC (Hawthorne) Investment Sale 242,212 Springville

Provo Craft Office/Industrial Bldg NuSkin Enterprises, Inc Lease 212,685 Spanish Fork

Western Distribution Center NuSkin International, Inc. Lease 115,230 Spanish Fork

Western Distribution Center Elite Marketing LLC Lease 111,650 Spanish Fork

Western Distribution Center ViVint, Inc Lease 108,313 Spanish Fork

Former Rocky Mountain Welding Rocky Mountain Recycling Sale 96,700 Pleasant Grove

Notable Transactions

Average lease rates are a weighted average and have been grossed down to a “NNN” equivelent. All lease transaction data exclude renewal transactions. Average sale price PSF is a weighted average. Sale data exclude investment transactions.

Quick Stats

2014Year Over

Year Change% change

Vacancy 3.45% (128) BPS

# of Leases 43 2.38%


Leased SF 708,278 -11.09%

# of Sales 19 137.50%

Sales $PSF $63.56 52.45%Sold SF 516,270 144.34%

38

72

94

44 50

62

- 10 20 30 40 50 60 70 80 90

100

2009

2010

2011

2012

2013

2014

Number of Transactions (Lease & Sale)

$0.47

$0.36

$0.37 $0.40 $0.41 $0.42

$0.25

$0.30

$0.35

$0.40

$0.45

$0.50

2009

2010

2011

2012

2013

2014

Average Lease Rates (NNN)

9.98%9.18%

8.35%7.60%

4.73%

3.45%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

2009

2010

2011

2012

2013

2014

Direct Vacancy Rate

$61.45 $61.15

$65.47

$42.57 $41.69

$63.56

$20.00$25.00$30.00$35.00$40.00$45.00$50.00$55.00$60.00$65.00$70.00

2009

2010

2011

2012

2013

2014

Average Sale Price PSF

Documents

Ogden Industrial Parkastro.ngacres.com/htmlemails/jheaton/ogden_industrial_park_1330w… · Ogden Industrial Park Multi-Tenant Industrial Investment 1330 West 3300 south ogden, ut