Food News Updates

· The Bankruptcy Files: Arctic Glacier's Chill, Grubb & Ellis Seeks Sale, and ...The Am Law DailyCatching up on what has been a busy couple of weeks for Am Law 200 bankruptcy lawyers, The Am Law Daily takes a look at several of the notable cases filed since our most recent restructuring roundup on February 10. As usual, hourly billing rates for ...
· Monster Beverage 4Q net income risesSan Jose Mercury NewsSoda and juice maker Monster Beverage Corp. said Thursday its fourth-quarter net income rose 31 percent as the company sold more of its energy drinks and expanded overseas. But higher costs for packaging and ingredients caused fourth-quarter net income ...
· Horse-slaughter plant proposed for Texas CountySpringfield News-LeaderA vacant gas pipeline manufacturing facility between Mountain Grove and Cabool could soon be converted into a horse slaughtering business to produce food for human consumption. That's the plan for Unified Equine, LLC, a company formed by a Wyoming ...
· Nestle Plans to Build 220 Million-Euro German Nescafe PlantBusinessWeek24 (Bloomberg) -- Nestle SA, the world's biggest food company, plans to spend 220 million euros ($295 million) to build a factory in Germany to make Nescafe Dolce Gusto coffee. The plant in Schwerin, in the north of the country, will produce about 2 ...
· Major food storage and processing company to open by JulyBangor Daily NewsBy Abigail Curtis, BDN Staff BELFAST, Maine — A major food processing facility that has been in the works for months has reached a $2 million financial goal and should be up and running by the first of July. Jan Anderson, co-owner of Coastal Farms ...
· Icelandic acquisitions signal long-term gains for High Liner FoodsTheChronicleHerald.caThe acquisition of Icelandic Group's US and Asian operations may have caused High Liner Foods Inc.'s earnings to hit a shoal. But a Halifax investment analyst thinks it could be smooth sailing ahead for the Lunenburg food processing giant.
· Skinny Nutritional Corp. Signs Agreement with Cott Corporation's Cliffstar ...MarketWatch (press release)Cott operates soft drink, juice, water and other beverage bottling facilities in the United States, Canada, the UK and Mexico. Cott markets beverage concentrates in over 50 countries around the world. Independently, Skinny Water® is quickly expanding ...
· Food Truck Ban Could Stop Mobile Foodie Revolution In Its Tracks (VIDEO)Huffington PostSAN FRANCISCO, CA - Even though House Minority Leader Nancy Pelosi recently called food trucks "a model for small business innovation," other California legislators are considerably less bullish on the whole phenomenon. Last week, Carmel Assemblyman ...

Flight to Quality Industrial Space

For the fourth consecutive quarter, Tampa Bay’s industrial market registered positive net absorption - 130,639 square feet .This marks the first four quarter span of positive net absorption since Q2 2006 - Q2 2007. Vacancy rates went unchanged from the previous quarter, remaining at 10.3 %. Asking lease rates rose for the first time in four years, ending the year at $4.55 per square foot triple net. Flight to quality continues to remain the common interest with class A quality space priced at what were once class B rates. We expect a drop in quality in the remaining vacant space.

Expansion Space Tight for Food Facilities

As members of Colliers Food Advisory Services Group, we track regional facilities suitable for that use. Here is some info on our local area’s commercial space for food and beverage distribution.
· Out of 121.5 million square feet of industrial properties in Hillsborough and Polk, only 14% comprise commercial space that is suitable for food and beverage manufacturing, processing, warehousing and distribution.
· This number is further reduced by the need for specialized space, e.g., dry, chilled, frozen. Especially low vacancy in this segment has led to some stiff competition for existing space.
· This is leading many companies to consider retrofit, build to suit and/or sale leaseback options.

For specific property information on market inventory, existing property, would-be developers of specialized facilities, or suitable build to suit land, call us.

Colliers Economic Crystal Ball

KC Conway is Colliers' market analyst for Valuation and Advisory Services. He presents his predictions for 2012 in year end white papers, concluding that 2012 is looking especially good for industrial real estate.
He believes the demand for warehouse space will be the strongest in key port and inland distribution MSA's, including Tampa. Strong growth sectors in the economy will include agricultural, pocessed food and energy exports. For a copy of KC's full report on this and on U.S.Port Analysis, email me at dee.seymour@colliers.com

Here is a look at the Tampa regional economy from March's Moody’s Precis Report (Click here to view the Report). Job growth is sluggish but they predict that recovery will be assisted by positive demographics and favorable industrial structure. Their data and conclusions:

Strong demographic trend shows positive net migration into Tampa.
Lower housing prices are a double edged sword - homes more affordable, but mortgage debt and default are above national average.
Increased consumer spending is lifting retail sales.
Port of Tampa expansion and high speed rail point to long term upside growth.

If you would like to see Moody’s US report, let us know. We subscribe to this and other analytic data services and publications. Unless you indicate otherwise, we will periodically send you brief emails with that those that we think might be of interest to you.

CRE Sellers Adjust Expectations

According to Real Capital Analytics March issue of “Capital Trends” after a dismal 2009 industrial real estate pricing is becoming more realistic

“For would-be sellers of commercial property, 2009 was one tough year. An astonishing 83% by volume (89% by number) of properties offered in the first nine months of 2009 failed to sell. Apartment offerings fared slightly better with a success rate of 25% while hotels proved the toughest sell – fewer than 10% of the offerings closed. They predict that in 2010 distressed sellers will not dominate but will be a significant part of the market, with the rest holding on in hopes of rising values.

"The user/other sector has steadily grown its share of the sales market in the latter half of the decade, and so far this year this group is offering – and closing - more asset sales than most.

“Private investors, end users and public companies accounted for the lion’s share of industrial property sales in 2009, …but that picture is shifting rapidly as the New Year settles in. Private investors remain the most active, but public companies have scaled offerings and sales back dramatically while institutions have ramped up, accounting for nearly a quarter of all activity this year. Lenders have remained a minor component of sales activity year to date, yet have heavily increased their assets on offer to nearly 40% of all industrial properties for sale in 2010.”

Here is the Q4 2009 year end Market Overview for Tampa Bay Industrial and Flex space. Call or email us for specific information or updates.

Tampa Bay Industrial Market Report 4th Qtr 2009