Commercial Property News - October 2008 - (Page 8)

INDUSTRIAL MARKET INTELLIGENCE Wells Real Estate Funds New Acquisitions Atlanta, Georgia Lindbergh Center Marketed by CB Richard Ellis (Still) Made in USA New Issues Shape Manufacturing Needs By Paul Rosta A rural town in Montgomery County, New York has defied a national economic trend. Beech-Nut Nutrition Corp. this past spring unveiled plans to build a $124 million baby-food factory in Florida, N.Y. When production starts next year, the plant, which will incorporate a series of sustainable measures, will replace an existing plant upstate in Canajoharie that was damaged by flooding two years ago. Beech-Nut’s upcoming facility contradicts the long-term decline of the U.S. manufacturing sector. Craig Meyer, head of Jones Lang LaSalle Inc.’s industrial practice, pointed out,“We are still shedding manufacturing jobs in the U.S.” And a National Association of Manufacturers report released this Labor Day noted that the economy lost another 324,000 net manufacturing jobs from the fourth quarter of 2005 to the middle of 2008. So which snapshot is accurate? Both, it turns out. While the U.S. manufacturing sector is unquestionably shrinking, it is also changing shape rather than disappearing.The National Association of Manufacturers argues that, contrary to widespread perception, the country is “We are pleased to Wells Real Estate Investment Trust II, Inc. proudly announces the acquisition of two AT&T corporate campuses in Atlanta, Georgia, encompassing 2 million square feet. extend our relationship with the world’s largest communications company, while expanding our presence in Atlanta’s strongest commercial real estate market.” Joseph P. Oglesby Chief Investment Ofﬁcer in the middle of September, Church & Dwight Co. broke ground on a $150 million Arm & Hammer laundry detergent plant and distribution hub in Pennsylvania. Lenox Park Marketed by Jones Lang LaSalle Wells Real Estate Funds 6200 The Corners Parkway Norcross, GA 30092-3365 Fax: 770-243-8280 www.wellsref.com REMCADP0808-0781 © 2008 Wells Real Estate Funds, Inc. still the No. 1 manufacturing nation, accounting for more than 20 percent of all global manufacturing output. That estimate serves as a reminder that manufacturing still forms an anchor for both the economy and the industrial real estate sector. As manufacturing sculpts its new place in the national landscape, development and site selection could become growth industries in the next few years.“Clearly, older space is more likely to be functionally obsolete,” said CB Richard Ellis Inc.director of operations Bruce Rasher. As manufacturing evolves, consultants and developers must meet the demand for greener, more efficient and technologically sophisticated facilities. “Officers of large (manufacturing) companies don’t talk about real estate (to us) anymore,” said Dan Frankel, managing director for Cushman & Wakefield Inc.’s Eastern region industrial division.“They talk about reducing costs and how they can be more efficient.” Manufacturers now need their consultants to advise on incentives, efficiency and supply-chain issues. In addition, during the next few years, consultants will need to determine which industries are most likely to expand. National Association of Manufacturers chief economist David Huether suggested that U.S. growth industries often turn out to be those that make sophisticated products—such as machinery, computers, and aerospace equipment—that require technically skilled workers. Strong 8 COMMERCIAL PROPERTY NEWs • October 2008 • www.cpnonline.com http://www.wellsref.com http://www.wellsref.com http://www.cpnonline.com

Table of Contents for the Digital Edition of Commercial Property News - October 2008

CPN - October 2008
Contents
Starting Line
Industrial
Data/Analysis
Conferences
Chicago Market Profile
Finance
International
Title Insurance
Brokerage
Corporate Report

Commercial Property News - October 2008