The Graham Report 2020: Market Survey, Huntsville

THE GRAHAM REPORT M ARK E T S URV E Y | H U N TSV ILLE

2021

2 6 8 10 12 14 18 20 22 24 26 30 36 44

Graham Report 2021 Industrial Overview • Jetplex • North/Central • Chase • Greenbrier Office Overview • Central Business District • Jetplex/Madison • Cummings Research Park Map • Cummings Research Park Graham Services Graham Transactions & Availabilities About Graham

GRAHAM REPORT 2021 HUNTSVILLE, ALABAMA

The Huntsville commercial real estate market was resilient throughout the COVID-19 outbreak of 2020. While all sectors were immediately impacted by the rolling and confusing shutdowns, the market has stabilized and recovered quite well in a short period of time.

The number of employees working from home increased dramatically in 2020 and this change might have lasting effects as companies re-think their office operations. The Huntsville office market still managed to net positive absorption of 972,501 sf and a vacancy rate of 9.26%, the lowest in several years. Most of the positive activity has taken place at the Redstone Gateway project.

The increase in e-commerce distribution during the pandemic accelerated the industrial sector as more projects, including a 1.1 million sf Amazon Distribution Center, were announced to the area.

The vacancy rate (4.98%) is at the lowest level in more than a decade.

The industrial sector has seen 2.5 million sf of positive absorption in the last two years and construction is booming with greater than one-million sf of new, speculative space under construction to help meet the demands of a growing industrial base.

Land prices continue to escalate across all sectors. Prices in the CBD remain above $50 psf as the area remains a prime spot for renovation and/or new construction. Industrial land prices have increased dramatically in the Greenbrier area, catching up with the spike in activity. Retail and multi-family land prices remain strong.

INDUSTRIAL OVERVIEW

6

Graham & Co | 2021 GRAHAM REPORT | HUNTSVILLE, AL

HUNTSVILLE INDUSTRIAL OVERVIEW Vacancy for Huntsville’s industrial market decreased in 2020 to 4.98%, marking the lowest rate the Huntsville Industrial market has seen since 2008.

Vacancy is still above the national rate of 4.60%. Average rental rates nationwide increased 6.3% to $8.24 per sf while the Huntsville market also saw an increase in rents.

Asking rates for new Class-A industrial office are close to $7.00 per sf. Low supply and high costs of new construction will continue to drive rents upward.

New construction for industrial buildings increased sharply to 264 million sf, up 9.55% over 2019. More than 1,000,000 sf of non-user owned industrial products were announced or under construction in the Huntsville market.

The Huntsville market had positive absorption of 1.2 million sf in 2020, which equates to a net positive absorption of three million sf in the last two years. Nationwide absorption was 223 million sf with 104 million sf absorbed in the 4th quarter. Nationally, 48 transactions were completed for facilities of one million sf or more

Land prices for industrial projects continue to increase, especially in the Greenbrier and Spacegate areas. Land is now selling for more than $50k per acre in most submarkets.

The investment market for industrial product was again one of the top performing sectors with an average national cap rate of 6.25%. Investors are searching beyond the large, Tier I and II cities for investment deals and that has lowered cap rates in Tier III cites like Huntsville. In fact, there were a couple of industrial trades in the Huntsville market in 2020 that were sold for below a 7% cap. The outlook remains bullish for the industrial sector as finance rates remain low and demand for the e-commerce product remains high.

7

ANNOUNCEMENTS OF NOTE IN 2020: The Covid-19 Pandemic increased the demand and needs for e-commerce companies and buildings. The expected industrial absorption for 2022 is 333 million sf which is triple the absorption now. The Huntsville market, coupled with the growth around the Mazda Toyota plant, is now beginning to feel the impact of these changes.

•

More than 1.2 million sf of speculative industrial space was announced or under construction, with greater than 750k sf in the Greenbrier submarket.

•

Prices have increased for new construction which will drive rental rates up.

•

Huntsville has many new developers and owners in the market now.

INDUSTRIAL ABSORPTION

2020: 1,272,271 FEET SQUARE

SQUARE FEET

2,000,000 1,500,000

VACANCY RATES

327,729

SQUARE FEET

1,000,000

MARKET

SINGLE TENANT

MULTI TENANT

Jetplex

11.31%

2.32%

8.39%

North|Central

0.73%

0.07%

0.17%

Chase

6.63%

1.89%

6.48%

Greenbrier

0%

0%

0%

OVERALL

500,000 0 -500,000

2016

MARKET

2017

2018

SF

2019

2020

VACANT SF

2020

2019

2018

2017

2016

Single Tenant

20,922,702 SF

996,203 SF

5.70%

5%

7.87%

4.72%

4.70%

Multi-Tenant

4,876,575 SF

445,430 SF

1.89%

9.40%

6.87%

10.20%

14.28%

25,799,277 SF

1,441,633 SF

4.98%

5.84%

7.64%

5.97%

6.86%

Total Industrial

8

Graham & Co | 2021 GRAHAM REPORT | HUNTSVILLE, AL

JETPLEX INDUSTRIAL MARKET

Jetplex Center

9

[ 11.2 MILLION SF TOTAL ] OVERALL VACANCY 8.39% SINGLE TENANT 11.21% MULTI-TENANT 2.32% Recent developments in the Jetplex Industrial Market: •

The 550,000 sf former Navistar plant is now 100% leased. The building was vacated in 2017 and sold to an out of town investor.

•

Remington exited their 796,000 sf building on Wall Triana Hightway. The 200 year old firearm manufacturing company declared bankruptcy and vacated buildings in Huntsville, AL and Madison, North Carolina.

•

Shamrock Investors began construction on a 116,000 sf building on James Record Road.

The building offers 32-foot clear ceilings and is located 1.5 miles from I-565.

Major area tenants include: Navistar, Kohler, SES, & Georgia Pacific.

Vacancy for Jetplex Industrial Park increased slightly in 2020 to 8.39%, up from the previous year’s 7.10% rate. Vacancy for the Jetplex area remains low with the largest vacancy found in the former 796k sf Remington plant.

Jetplex Industrial Park is Huntsville’s largest industrial base, representing 43% of the Huntsville industrial market, and comprised of several smaller markets that surround Huntsville International Airport and the Intermodal Center. Jetplex Industrial Park contains 1,470 acres and offers Foreign Trade Zone #83, U.S. Customs Port of Entry and interstate access via I-565. Jetplex South Industrial Park contains 1,400 acres and is located just south of Jetplex Industrial Park. Lowe Industrial Park is a 900-acre park originally designed to encompass the growth of Intergraph Corporation.

10

Graham & Co | 2021 GRAHAM REPORT | HUNTSVILLE, AL

NORTH/CENTRAL INDUSTRIAL MARKET

Facebook Huntsville Data Center

11

[ 5.37 MILLION SF TOTAL ] OVERALL VACANCY 0.17% SINGLE TENANT 0.73% MULTI-TENANT 0.07% Recent developments in the North/Central Industrial Market:

Vacancy for the North/Central Huntsville industrial market fell sharply to 0.17% in 2020, down from the 7.20% posted in 2019.

Several large blocks of space were leased, and a couple of buildings that were under construction were completed and occupied.

The North/Central Huntsville industrial market is comprised of 5.37 million sf and represents 21% of the total Huntsville industrial market.

North Huntsville Industrial Park added several large buildings to its inventory, including the 900,000 sf Facebook data center and the 136,000 sf Aerojet facility. The area provides good access to North Alabama and Southern Tennessee. The tenant mix in the area consists of companies in the automobile industry, defense, and local and national service companies.

•

The 300 Diamond Drive building was leased by Kohler and SAIC. The building is 300,000 sf and is now 100% leased.

•

Blue Origin opened its new 350,000 sf rocket engine manufacturing plant in Cummings Research Park West. The building was built to provide the main engines for the Vulcan Centaur that the United Launch Alliance is building in Decatur, Alabama.

•

Yulista occupied space at its new 126,000 sf facility at Redstone Gateway. The new building will be used for warehouse and distribution, including some space for kitting operations.

Major area tenants include: Toyota, Aerojet Rocketdyne, Blue Origin, and Dynetics.

12

Graham & Co | 2021 GRAHAM REPORT | HUNTSVILLE, AL

CHASE INDUSTRIAL MARKET

120, 130, and 150 Vintage Drive

13

[ 5.05 MILLION SF TOTAL ] OVERALL VACANCY 6.48% SINGLE TENANT 6.63% MULTI-TENANT 0% Recent developments in the Chase Industrial Park: •

The 1.3 million sf former Cinram plant on Moores Mill Road was put on the market for $43,000,000 or $31.57 per sf.

The building sits on 161 acres, is fully air conditioned and has more than 600k sf of 42-foot clear warehouse space.

•

130 Vintage Drive building, a 277,883 sf industrial building that was formerly part of the Qualitest Campus, sold for $19,900,000 or a 6.75% cap rate. The building is currently leased by Leidos.

Major area tenants include: J and J South Central, Cinram, PPG Industries, Mitchell Plastics, Hart & Cooley, Kommerling, and Schwarze Industries.

Vacancy in Chase Industrial Park held steady at 6.48% in 2020. A large block of space, the 1.3 million sf former Cinram building, will be added to the market in August of 2021; vacancy numbers are expected to increase drastically by EOY 2021.

Chase represents 22% of the entire Huntsville industrial market and was developed by the Madison County Commission. Chase Industrial Park is comprised mostly of single tenant employers. Situated on 1,700 acres in northeast Huntsville, only 50 acres remain available for new development.

Products manufactured in the park include automobile supplies, plastic products, and home building supplies.

14

Graham & Co | 2021 GRAHAM REPORT | HUNTSVILLE, AL

GREENBRIER INDUSTRIAL MARKET

Mazda/Toyota Manufacturing USA Plant.

15

[ 4.16 MILLION SF TOTAL ] OVERALL VACANCY 0% SINGLE TENANT 0% MULTI-TENANT 0% Recent developments in the Greenbrier Industrial Park: • Hollingsworth Companies held a groundbreaking for a new 404,738 sf industrial building in SouthPoint Business Park. This is the 11th building developed in the park which, once completed, will have more than 1.9 million sf of industrial space.

•

The TPA Group announced plans to build a 213,000 sf building on Mooresville Road.

The building is estimated for completion in September and will offer 32' clear height and excess land for outside storage or truck parking.

•

Intersect Development Group closed on a 47-acre tract of land on which it will build a planned 400,000 sf industrial park. The first building will be 144,500 sf and construction is expected to be completed in 2021.

Major area tenants include: GE Aviation, Target, Fed Ex.

SEGERS ROAD

OLD HWY 20

RIE R

GARRETT ROAD

G REENB

Vacancy is currently at 0%. Several new construction projects, including the Mazda Toyota plant, will raise the total sf in the area to more than 6 million sf in a couple of years.

Most companies located in the area are generally in the automotive, services, and transportation industries.

MOORSVILLE ROAD

The Greenbrier area is in an ideal location for companies that have logistic and transportation needs in the North Alabama and Southeastern markets. Interstate I-65 and I-565 intersect near Greenbrier and serve as a key access point for companies in the automotive, services and defense industries.

Rail access is available in the area.

P KWY

BIBB GARRETT ROAD SWANCOTT ROAD

OFFICE OVERVIEW

18

Graham & Co | 2021 GRAHAM REPORT | HUNTSVILLE, AL

HUNTSVILLE OFFICE OVERVIEW Vacancy rates for the Huntsville office market fell slightly in 2020 to 9.26%, down from the prior year’s 10.40%. Vacancy has fallen now for five straight years from the 19.31% registered in 2015.

Several new office construction projects are underway in the CRP submarket as part of a consolidation effort for defense related companies.

The office market had positive absorption of 972,501 sf in 2020. The Huntsville market has experienced more than 2.6 million sf of positive absorption since 2017. Most of the newly leased space is located in Redstone Gateway and Cummings Research Park (CRP). The Redstone Gateway project has grown to more than 1.3 million sf of office, industrial ,and retail space.

Vacancies were down in the Jetplex/ Madison and CRP submarkets, but up in the Central Business District (CBD).

CRP is the area’s largest submarket, and vacancy fell to 6.99% from the prior year’s rate of 8.14%. The CBD vacancy increased to 14.5% while the Jetplex/ Madison market decreased to 14.06%.

Most vacancies in all three submarkets are located in older, Class-C buildings that might be candidates for a redevelopment project.

New construction in Huntsville has been active in all sectors, especially in the Redstone Gateway development. A couple of new office building projects

were announced for the CBD, and several redevelopment projects are underway that include a large office component.

Rental rates have increased in the Huntsville market for Class-A and B space. Class-A space now leases in the low to mid $20.00 psf range (full service) while Class-B space generally leases in the $18.50 psf to low $20.00 psf range.

Annual rent increases average 2% to 3% and free rent is not being offered as much as in the past.

19

OFFICE ABSORPTION

2020: 973,000 SQUARE

FEET

SQUARE FEET

VACANCY RATES

892,000

SQUARE FEET

1,000,000 800,000 600,000 400,000

SINGLE TENANT

MARKET

MULTI TENANT

OVERALL

Cummings Research Park

4.25%

13.13%

6.99%

Jetplex/ Madison

0%

17.13%

14.06%

Central Business District

7.30%

15.29%

14.55%

200,000 0 -200,000

2016

MARKET

2017

2018 SF

2019

2020

VACANT SF

2020

2019

2018

2017

2016

Single Tenant

9,825,427 SF

414,664 SF

4.22%

6.31%

4.06%

6.32%

7.87%

Multi-Tenant

9,473,794 SF

1,372,191 SF

14.48%

13.97%

16.38%

17.53%

24.39%

19,299,221 SF

1,786,855 SF

9.26%

10.40%

10.64%

12.26%

16.63%

Total Office

Office Announcements of Note in 2020 Redstone Arsenal was selected as the preferred headquarters for the new Space Command program. Huntsville was chosen over six other sites that compared infrastructure, community support, and costs. The decision is pending results from an environmental impact analysis. The project would employ 1,400 people once fully operational. Redstone Arsenal employs more than 40,000 employees to serve 65 various federal agencies on the base.

The Redstone Gateway project has grown dramatically during the last three years and now has more than 1.3 million sf of office, warehouse, and retail space on its campus. The project has fourteen properties and is 100% leased at this time. The average age of the buildings is five years old. Three new building projects are under development that will offer 156k sf of space once completed. The tenant mix includes Boeing, Yulista, DRS, Cummings Aerospace, and Spaces.

20

Graham & Co | 2021 GRAHAM REPORT | HUNTSVILLE, AL

CENTRAL BUSINESS DISTRICT OFFICE MARKET

Redstone Federal Credit Union

21

[ 3.66 MILLION SF TOTAL ] OVERALL VACANCY 14.55% SINGLE TENANT 7.30% MULTI-TENANT 15.29% Recent developments in the Central Business District Office Market: •

•

•

•

The Huntsville downtown/central business district (CBD) office market consists of approximately three and half million sf and is dominated by the business and health sectors including law firms, banking, accounting, and real estate companies. City, county, and government employees also make the CBD their home.

Vacancy in the CBD increased slightly to 14.55%, up from the previous year’s 14.13% rate. Construction has been active with four new hotels, two multi-family projects, two new office buildings, and a large parking deck slated to be complete by 2022. The need for additional Class-A office space is beginning to be met with a couple of new office building offerings. Land prices continue to appreciate with recent sales over $50 psf.

The 67,000 sf Redstone Federal Credit Union building on Davis Circle completed construction in late 2020. The building will be home to Redstone’s mortgage, insurance, and investment services business units.

The two Wells Fargo buildings located on Franklin Street and Madison Street were sold to a local investment group. Wells Fargo will remain in the office building. The owners will look for a new tenant to backfill the existing branch building.

The former Law Library located at 205 Eastside Square sold to a local LLC for $128 per sf. The building is 12,600 sf and features three floors of open office space and a basement.

The 220,000 sf Lincoln Mill was purchased by a local team of investors and will undergo a redevelopment project that will include painting, additional parking and lighting, updated elevators, and other tenant specific improvements. The building was originally built in 1900 and was the office to many of the early NASA engineers.

Major area tenants include: Regions Bank, Bryant Bank, The City of Huntsville, BB&T, Lanier Ford Attorneys at Law, Bradley, and Huntsville Hospital.

22

Graham & Co | 2021 GRAHAM REPORT | HUNTSVILLE, AL

JETPLEX/MADISON OFFICE MARKET

Toyota Field

23

[ 1.70 MILLION SF TOTAL ] OVERALL VACANCY 14.06% SINGLE TENANT 0.00% MULTI-TENANT 17.13% Vacancy for the Jetplex/Madison office market decreased in 2020 to 14.06%, down from the previous year’s 20.15% rate. Vacancy rates in Madison have now dropped five years in a row.

Recent developments in the Jetplex/Madison Office Market: • The multi-use development along Highway 72 has plans for a 350,000 sf medical office building. Retail, multi-family, and residential construction has already begun at the development.

Madison is one of the fastest growing cities in the state of Alabama and the demand for medical and business services remains strong. Many medically related office and financial services buildings have been built in the Madison market in the last three years.

Both Crestwood and Huntsville Hospital have a presence in Madison.

•

Development on County Line Road continues to accelerate with a large amount of announced retail transactions and a new 10,000 sf medical building under construction. 12205 County Line Road, a 25,400 sf medical building constructed in 2008 sold for $130 per sf.

Major area tenants include: Palco, Intergraph, Boeing, Huntsville Hospital, and Progress Bank.

ga Pe

Dynetics Dynetics

27 AC 7.61 AC

ive

Jackson Center

HudsonAlpha Main

8.07AC

Columbia High School

4.6 AC 9.3 AC

30 AC

Lake 3

ADTRAN

7.35 AC

35.88 AC

9.3 AC

18.12 AC

rive ath D Bob He

Jan Davis Drive

7.9 AC

Rockwell Collins 6.43 AC

11.35 AC Cubic GATR Technologies

20 AC

6.78 AC

11 AC

6.22 AC

8.7 AC Northrop Grumman 8.64 AC

14 AC

11 AC

8.2 AC

KBRwyle

10.91 AC

Eagle Drive

9.67 AC Technology Service Corporation / MTS

Northrop Grumman

6.49 AC

Raytheon Company

L3 / Summit 7 9.5 AC

BPI

Catholic High School

Diamond Drive

18 AC

DirecTV

The Bridges

Park West Center

Technology Pointe

Research Park Office Center

CRP Applications Lake 5

CINRAM

Huntsville Hospital

Bridge Street Town Centre

KBRwyle

Quality Circle

Defense Acquisition University

Parsons

CSRA / Trimble / Trident Technologies / DynCorp International / ExoAnalytic Solutions / Booz Allen Hamilton

ERC / Cummings Aerospace

Old Madison Pike

UAH Foundation (Zoned CRP West)

InterFuze

11.1 AC

6.08 AC

AEgis Technologies

7 AC

ASRC Aviagen Federal

11.78 AC Logicore

Lake 4

Decibel

SAIC / FPMI

rive

Synapse Wireless / 6.2 AC Leidos

305 Quality Circle

Highland Office Park

Progress Center

Hampton Inn & Suites Home2 Suites by Hilton

Cabela's

Huntsville Hospital ARSA, P.C. NeXolve / Graham & Co.

Thornton Research Park University of Alabama in Huntsville Foundation Hu

nt

lle svi

Int

565

at ern

ion

ir al A

por

t

U.S. Army Redstone Arsenal NASA Marshall Space Flight Center

Pr Pr

Dynam SRA

Park Place

The Point

Dynetics / Raytheon / Vencore The SI / Telephonics

10.75 AC

8.3 AC

18 AC

12.3 AC

ARC / MDA

Odys sey D

5.21 AC

Bentley

Explorer Boulevard 11.3 AC

Lake 2

Colsa

19.23 AC

6.4 AC

86 AC

Digium, Inc.

18.35 AC

43.92 AC

AeroVironment

~ 50 acres CRP Landmark Site

BAE Systems / Orbital ATK / Lake 1 BWXT

Quantum Research

ADTRAN

6.16 AC

5.91 AC

rive

19.69 AC

AT&T

uin D

Moq

10.76 AC

10 AC

Aerojet Rocketdyne

5.64 AC

9.22 AC

Colonial Center at Lakeside

Davidson 7.19 AC Technologies 7.59 AC

51.95 AC

Garver

12 AC

Gove rnors W est

7.7 AC

9.31 AC

IRS

Dynetics

10.63 AC 635 Discovery Yulista

Di sc ov er

Farrow Road

10 AC

yD riv e

CFDRC / The Smith Family Clinic for Genomic Medicine

7.8 AC

9.6 AC

S3, Inc.

Intrepid

CenturyLink 6 AC SDI / 10.34 AC Sierra Nevada

Dr 5 AC

9.6 AC

Huntsville 5 AC Utilities 3.2 AC Rolls Royce /

5 AC

it h Sm

8.47 AC

9.2 AC

rd va ule o B er lor Exp

6.57 AC

10.6 AC

5 AC

10 AC

15.47 AC

HII

k C. Mar

Future Development

10.75 AC

6.04 AC

Complex

Research Park Boulevard

Dynetics 10.09 AC

8.75 AC

7.97 AC

12.71 AC

Education Network

MTA / Gideon

18 AC

Voyager Way

12.38 AC

Industries

7 AC 6.5 AC Bldg. 2 HII Future Research Bldg. 1 URS / Siemens / i3 / MCR M3 Superior Solutions 11 AC Qualis Bldg. 3 T&W Operations / Discovery Place LSINC / NetWorx Trideum 24 AC 13.26 AC Delta 6 AC Kord Research 5.35 AC 5 AC Technologies

Dynetics

10.64 AC 7.3 AC

9 AC

10.23 AC

26.79 AC

s su

11.92AC

21 AC

Enterpr

Dynetics 14 AC

Dynetics Field

6.75AC

11.96 AC

Geoce

IQ

72 AT Solution / SESI / KLO EADS Corporate Office Park Stratolaunch / Snelling Johnson Controls / Corporate Drive Moog / Red Hat Sigmatech / Faulkner PeopleTec Victory Solutions / Vertiv University Technology Center BRC Social Security Strayer University Lockheed Administration Chugach Baron Martin Services A-P-T Yulista Kratos Defense & 401 Wynn Research / Qualitest Radiance Security Drive SEAC Technologies, Inc. Solutions Research Drive

North Campus Residence Hall

ent

Strata-G Solutions

Bevill Center

University Center/ Exhibit Hall

Roberts Hall/Roberts Recital Hall

Central Campus Amphitheater Residence Hall

Paragon at 511

Nursing Building

Salmon Library

Lockheed Martin

Wilson Hall/ Wilson Theatre Chan Auditorium Business Administrative Building Charger Union Shelby Center for Science & Technology

SWIRLL (Severe Weather Institute Research and Lightning Laboratory) Robert “Bud” Cramer Research Hall Benchmark (NSSTC & NOAA Weather Electronics Forecasting Office)

Willbrook Solutions 4815 Bradford

Teledyne Brown Engineering

Northrop Grumman Technical Micronics Controls

Ares Corp.

UAH SMAP

215 Wynn Drive

e gy Driv

lo Techno 106 Wynn Drive

Union Grove Gallery & Meeting Hall

ROC/CAMO Spacehab

103 Wynn Drive

General Dynamics

Advanced Systems Technology (United Technologies)

Student Service Building

nt D ow

ow n

University Fitness Center

Intermodal Parking Facility Public Safety Charger Village Food Court Charger Village I

Engineering Building/ Admissions

Fraternity/ Sorority Row Southeast Campus Housing

Credit Union Optics Building

McDonnell Douglas Auditorium Materials Science Building

Charger Park

Wernher von Braun Research Hall Solar Energy Research

Shelbie King Hall AAR Integrated Technologies

Holmes Avenue

Charger Way

Business Services Building/ Copy Center

Olin B. King Technology Hall

Spragins Hall

ves Dr ive

ue

Lockheed Martin

306 Wynn Drive Amtec

AT&T

More than 50 Years of Success 3,843 acres 11.8 million square feet Almost 300 companies total More than 26,000 employees 13,258 enrolled college students

Av en

Tecvox

Gilmer Drive

Cummings Research Park

BizTech

Ben Graves Drive

es

Sparkman Drive

SPS / MSSI Fire Station #12

KRS, LLC / F1 Solutions 4975 Redstone Bradford Federal Credit Union

mic Concepts /

lm

DESE Research / SENTAR MBDA / Titertek Instruments

Bradford Drive

RFCU SimTech / Aranea Solutions / U.S. Army Corps of Engineers

Ho

Frank Franz Hall

Morton Hall

University Greenway

Avion

Wynn Dri ve

Intuitive Center at Research Center Gleason Research Associates / INTUITIVE / Research Place Pinnacle Solutions Rainbow Daycare Sikorsky Northrop Aircraft Grumman remier Selex Galileo / eschool Hawk Enterprises

Studio 106 Executive Plaza Office Park

Ben Gra

Shearer & Associates

John Wright Drive

TARCOG

OMI

Drive University

ts Hun

Physical Plant Johnson Research Central Receiving WLRH Center & Shipping Radio Propulsion Station Research Lab

vill

e

May 2018

Established in 1962, Cummings Research Park (CRP) is one of the largest and most-respected research parks in the world. Since its inception CRP has grown to become the second-largest science and technology park in the U.S. and fourth-largest in the world.

CRP West Interior Lots

(Lots that do not front Park boulevards, and must be accessed via non-boulevard roads)

CRP, as shown here, encompasses 3,843 acres and includes nearly 12 million square feet of administration, laboratory, research and development, classroom and manufacturing space.

Boulevard Non-Access Lots

Approx. 310 acres of land are available for development in CRP West. In order to stimulate economic development and investment, the price of land per acre in CRP is significantly lower than adjacent property, providing an attractive incentive for new and expanding companies.

Boulevard Access Lots

Land parcels in CRP West range from four acres (minimum) to 18 acres, but may also be reconfigured to meet company requirements. For each parcel, the City of Huntsville will complete basic site preparation including road access, curbing, drainage, telecommunications, and utilities to the site.

Outside of official CRP boundaries

CummingsResearchPark.com

(Lots that have property frontage on boulevards, but are accessed from non-boulevard roads) (Lots that have property frontage on and are directly accessible via boulevards)

Lakeside Lots

Acreage depicted on this map should be confirmed with CRP Director if interested.

For more information and undeveloped land prices, contact Erin Koshut at 256.535.2086 or ekoshut@hsvchamber.org Scale in Miles

0

1/4

1/2

3/4

26

Graham & Co | 2021 GRAHAM REPORT | HUNTSVILLE, AL

CUMMINGS RESEARCH PARK OFFICE MARKET

Redstone Gateway

27

[ 13.91 MILLION SF TOTAL ] OVERALL VACANCY 6.99% SINGLE TENANT 4.25% MULTI-TENANT 13.13% The Cummings Research Park (CRP) submarket remained steady as vacancy rates decreased to 6.99% down from the previous year’s 8.14%. Multi-tenant vacancy increased to 13.13% while single tenant vacancy fell to 4.25%.

Many companies in CRP are defenserelated and depend on the government for the funding of military projects. Many of the companies in CRP have expanded their footprint in the last three years, and money allocated for defense programs has improved.

CRP is the largest office market in Huntsville with more than twelve million sf, representing greater than 70% of the total Huntsville office market. Cummings Research Park is the second largest research park in the United States, encompassing 3,843 acres. Only 430 acres remain for future development. The range of companies in the park includes Fortune 500 companies, local entrepreneurial start-ups, biotechnology and defense related firms.

Most companies in CRP act in a support role to meet various demands for military installations located on Redstone Arsenal.

Redstone is home to the U.S. Army Aviation and Missile Command (AMCOM), the Space and Missile Defense Command, numerous Program Executive Offices (PEO), and major components of the Defense Intelligence Agency and the Missile Defense Agency.

Recent developments in the Jetplex/Madison Office Market: • The plans for the new 8,000 capacity amphitheater development were approved.

Construction will begin in 2021 with plans to be opened in 2022. The amphitheater is a key component for the MidCity Development which now includes Topgolf, Dave & Buster’s, REI Co-Op, and the newly announced Trader Joe’s.

•

A six-property office portfolio sold for $83 million to an out of town investment group.

The portfolio consists of more than one million sf of Class-A and B office space and includes the Northrop Grumman building in CRP and the Regions building in the CBD. The buildings were 97% occupied at the time of the sale.

•

Yulista moved into its new headquarter buildings in Redstone Gateway. The company consolidated multiple office and industrial locations in CRP and Jetplex into more than 364,000 sf of newly built office, R & D, and warehouse space at Redstone Gateway.

•

Construction for the Alabama School of Cyber Technology and Engineering (ASCTE) began at the intersection of Bradford Drive and Wynn Drive. The school will open at Oakwood University in the fall of 2021, then move into the new facility upon completion which is slated for summer of 2022. ASCTE is a statelevel magnet school that will specialize in the integration of cyber technology and engineering.

Major area tenants include: Dynetics, Adtran, Northrop Grumman, Lockheed Martin, and numerous other high-tech companies.

GRAHAM SERVICES

30

Graham & Co | 2021 GRAHAM REPORT | HUNTSVILLE, AL

GRAHAM SERVICES

DEVELOPMENT

BROKERAGE

INVESTMENT SALES

Graham & Company has a market-leading office platform with bolstered development capabilities. Graham’s clientcentric philosophy and growth-oriented approach as well as a shared culture of teamwork, integrity, and service position it to offer “best-in-class” real estate services.

31

DEVELOPMENT/CONSULTING Graham & Company’s development group assembles and works closely with teams of architects, engineers, and contractors to create both build-to suit as well as speculative developments. Graham’s development group also procures financing, negotiates leases, and establishes property management systems for its development projects. Graham has been involved in the development of industrial properties, office buildings, office/service centers, and office building rehabilitation projects throughout the Southeast.

BROKERAGE Graham & Company’s brokerage division provides sales and leasing services in four key sectors of commercial real estate: office, industrial, land, and investment. Graham agents consistently rank among the best in their prospective markets. However, it’s not the numbers that reflect the Graham way, it’s the ability to examine each deal through the eyes and sensibilities of its clients that separates Graham from the other industry leaders.

INVESTMENT SALES In addition to brokerage and development, Graham & Company offers investment sales services. Our in-house team has the experience and capability to produce quality offering memorandums, actively market assets for sale, source potential investors, and successfully navigate the closing process.

32

Graham & Co | 2021 GRAHAM REPORT | HUNTSVILLE, AL

CORPORATE SERVICES

Brokerage

Representing clients in the negotiation, structuring, and execution of leases

Construction Management Consulting, oversight, and project management of various build outs/ construction projects

Build-to-Suit Process

Develop custom properties and facilities to meet our client’s needs

Valuation Services

Broker opinions of value, and other financial models to better help you make wise and advantageous real estate decisions

33

Facilities Management

Lease administration, portfolio management, site management, etc.

Real Estate Tax Consulting Negotiating appropriate tax valuations for existing or new properties

Strategic Planning

Developing plans to harmonize strategic business goals with property and facility decisions

Debt Solutions

Leveraging debt relations to negotiate optimal terms for new acquisitions or existing properties

Graham & Company serves corporate and institutional clients by offering a comprehensive platform of real estate services across geographic locations and property types.

GRAHAM TRANSACTIONS & AVAILABILITIES

36

Graham & Co | 2021 GRAHAM REPORT | HUNTSVILLE, AL

GRAHAM TRANSACTIONS

SOLD

LEASED

2308 Meridian Street Huntsville, AL 160,000 SF Graham represented the buyer in purchasing this multi-building storage warehouse facility.

130 Vintage Drive Huntsville, AL 277,883 SF Graham represented both the landlord and tenant in leasing this industrial facility.

George Twitty, Jr.

Bart Smith, CCIM, SIOR Jeremy D. Pope, CCIM, SIOR

SOLD

LEASED 3414 Governors Drive Huntsville, AL 9,806 SF Graham represented Performance Drone Works in leasing office space at Stovehouse.

Bart Smith, CCIM, SIOR

SOLD

LEASED

2313 Whitesburg Drive Huntsville, AL 4,000 SF Graham represented the buyer in purchasing this facility for medical use.

912 Winchester Road Huntsville, AL 10,952 SF Graham represented the owner in the disposition of this industrial facility.

5323 Endeavor Way Tanner, AL 252,800 SF Graham represented Custom Assembly in its lease of this industrial facility.

George Twitty, Jr.

George Twitty, Jr.

Jeremy D. Pope, CCIM, SIOR

37

SOLD 2094/2100 Fisher Street Huntsville, AL 16,421 SF Graham represented the owner in the disposition of this industrial facility.

LEASED

SOLD

355 Quality Circle 409 Madison Street & 408 Huntsville, AL Franklin Street, Huntsville, AL 58,883 SF 17,816 SF Graham represented Dynetics in Graham represented the owner leasing this industrial facility. in the disposition of this office Bart Smith, CCIM, SIOR facility in downtown Huntsville.

George Twitty, Jr.

Bart Smith, CCIM, SIOR Tyler Fanning, SIOR

LEASED

LEASED

LEASED

1000 James Record Road Huntsville, AL 124,097 SF Graham represented the landlord in leasing this industrial facility to UPS.

905 James Record Road Huntsville, AL 67,285 SF Graham represented the landlord in leasing this industrial space to JIT Services.

905 James Record Road Huntsville, AL 49,325 SF Graham represented the landlord in leasing this industrial space to High Sec Labs.

Jeremy D. Pope, CCIM, SIOR

Jeremy D. Pope, CCIM, SIOR

Jeremy D. Pope, CCIM, SIOR

38

Graham & Co | 2021 GRAHAM REPORT | HUNTSVILLE, AL

Oakwood Road

SUBJECT

SOLD

LEASED

1241 Gnat Pond Road Leighton, AL 47,500 SF Graham represented the owner in the disposition of this industrial facility.

495 Production Avenue Madison, AL 19,200 SF Graham represented the landlord in leasing this space to GigaParts.

Jeremy D. Pope, CCIM, SIOR

Jeremy D. Pope, CCIM, SIOR

Swancott Rd

rm Blvd Chase Fa SUBJECT

SOLD

25025 Chase Farm Boulevard, Madison, AL 8.74 Acres Graham represented Penske in purchasing this industrial land site in the Greenbrier area.

Tyler Fanning, SIOR

Johns Road

SOLD

Oakwood Road Huntsville, AL 2.35 Acres Graham represented the buyer in purchasing this land site.

Tyler Fanning, SIOR

39

AVAILABILITIES LEASE

LEASE

LEASE

Sparkman Drive

Wynn Drive

SUBJECT

ison

Pike

MERIDIAN STREET WAREHOUSES

140 SPARKMAN DRIVE

670 DISCOVERY DRIVE

2308 MERIDIAN STREET HUNTSVILLE, AL

140 SPARKMAN DRIVE HUNTSVILLE, AL

670 DISCOVERY DRIVE HUNTSVILLE, AL

Old

Mad

AVAILABILITY: 5,000 SF - 50,000 SF

AVAILABILITY: Up to 219,000 SF

AVAILABILITY: 38,000 SF

• Storage warehouse facility • Yard space available

• Industrial/flex campus within Cummings Research Park East • Located within an Opportunity Zone

• Located within Cummings Research Park West • Situated on a 10-acre campus • Additional pad site available

George Twitty, Jr. georget@grahamcompany.com

Bart Smith, CCIM, SIOR barts@grahamcompany.com Tyler Fanning, SIOR tylerf@grahamcompany.com

SALE/LEASE

Bart Smith, CCIM, SIOR barts@grahamcompany.com Tyler Fanning, SIOR tylerf@grahamcompany.com

LEASE

LEASE

150 VINTAGE DRIVE

RUNWAY DISTRIBUTION

23366 BIBB GARRETT ROAD

150 VINTAGE DRIVE HUNTSVILLE, AL

230 LARACY DRIVE HUNTSVILLE, AL

23366 BIBB GARRETT ROAD TANNER, AL

AVAILABILITY: 269,981 SF

AVAILABILITY: Up to 208,000 SF

AVAILABILITY: Up to 305,760 SF

• Fully conditioned facility within Chase Industrial Park • State-of-the-art cross dock facility • 31’ clear height

• New construction in Jetplex Industrial Park • 48 docks with 2 wide drive-in ramps • 32’ clear height • Only 1.5 miles to the I-565 interchange

• Class-A industrial facility at the NW corner of I-65 & I-565 • Expandable by 200,000 SF • Custom TI packages and incentives available

Jeremy D. Pope, CCIM, SIOR jeremyp@grahamcompany.com

Bart Smith, CCIM, SIOR barts@grahamcompany.com Jeremy D. Pope, CCIM, SIOR jeremyp@grahamcompany.com

Jeremy D. Pope, CCIM, SIOR jeremyp@grahamcompany.com

Graham & Co | 2021 GRAHAM REPORT | HUNTSVILLE, AL

LEASE

INVESTMENT SALE

VD BL

SALE

SE

C AR

H

SUBJECT

RE

40

) 20 WY D (H

E LABL AVAI RES AC 8.3

AR EV

UL

O

DIS

MA

O NB

MADISON BLVD. LAND

135 WESTCHESTER DRIVE

4701 ANGLER DRIVE

MADISON BOULEVARD MADISON, AL

135 WESTCHESTER DRIVE MADISON, AL

4701 ANGLER DRIVE HUNTSVILLE, AL

AVAILABILITY: 8.3 Contiguous Acres

AVAILABILITY: 25,000 SF

AVAILABILITY: 5,190 SF

• Convenient ingress/egress via traffic signal at Research Boulevard • Highly visible location with frontage on Madison Boulevard • Close proximity to Town Madison

• New and planned construction in the Jetplex area • Located off Madison Blvd. just west of Wall Triana Hwy.

• Investment opportunity • Truck repair shop

Tyler Fanning, SIOR tylerf@grahamcompany.com

LEASE

Jeremy D. Pope, CCIM, SIOR jeremyp@grahamcompany.com

Jeremy D. Pope, CCIM, SIOR jeremyp@grahamcompany.com

SALE

Robinson Street

SALE

SUBJECT SITE 20+ Acres

Priceville Junior High School

Bethel Road

240 HIGHWAY 31

HIGHWAY 67 LAND

600 COLLEGE STREET

240 HIGHWAY 31 HARTSELLE, AL

HIGHWAY 67 PRICEVILLE, AL

600 COLLEGE STREET ALBERTVILLE, AL

AVAILABILITY: 10,000 or 16,000 SF

AVAILABILITY: 20 Acres

AVAILABILITY: 17,766 SF

• Retail opportunity • Highly visible location with access from Hwy. 31 and Hwy. 36

• Excellent visibility along Hwy. 67 • Less than 1 mile from I-65

• Two-story office building less than 1 mile from Hwy. 431 • 3-phase power with 100 Kilowatt natural gas generator

George Twitty, Jr. georget@grahamcompany.com

George Twitty, Jr. georget@grahamcompany.com

Tyler Fanning, SIOR tylerf@grahamcompany.com

41

LEASE

SALE/LEASE

BUILD-TO-SUIT

565 LOGISTICS CENTER

BTS OPPORTUNITY

2860 DENTON ROAD

565 LOGISTICS CENTER HUNTSVILLE, AL

PRODUCTION COURT MADISON, AL

2860 DENTON ROAD TUSCUMBIA, AL

AVAILABILITY: Up to 144,750 SF

AVAILABILITY: 3 Acres

AVAILABILITY: 10,487 SF

• Planned construction in the Greenbrier area; available 3Q 2021 • 32’ clear height • 30 dock doors

• Build-to-Suit opportunity • Located in the Jetplex area

• Office/warehouse facility with 10-ton crane • 1,200 amp 3-phase power • Fenced yard area

Jeremy D. Pope, CCIM, SIOR jeremyp@grahamcompany.com

Jeremy D. Pope, CCIM, SIOR jeremyp@grahamcompany.com

George Twitty, Jr. georget@grahamcompany.com

LEASE

LEASE

SALE K VH U 9 YKH 1V

K

VH

Z 9

SK OPL

:

SUBJECT /PNO^H` ,HZ[

296 NICK FITCHEARD

13800 MOORESVILLE ROAD

HIGHWAY 72 EAST LAND

296 NICK FITCHEARD ROAD HUNTSVILLE, AL

13800 MOORESVILLE ROAD ATHENS, AL

HIGHWAY 72 EAST HUNTSVILLE, AL

Photo representative of typical construction.

AVAILABILITY: 10,000 SF

AVAILABILITY: 60,000 SF

AVAILABILITY: 28 Acres

• New construction in the Spacegate area • 2 dock doors; 1 drive-in door • 18’ - 21’ ceiling height

• Convenient access to Hwy. 72, I-65 & I-565 • Dock high and ground level loading • Ample land to accommodate yard requirements

• Within the Huntsville city limits; zoned R2A (multi-family) • Approved for 408 units

Jeremy D. Pope, CCIM, SIOR jeremyp@grahamcompany.com

Jeremy D. Pope, CCIM, SIOR jeremyp@grahamcompany.com

Bart Smith, CCIM, SIOR barts@grahamcompany.com

ABOUT GRAHAM & CO

44

Graham & Co | 2021 GRAHAM REPORT | HUNTSVILLE, AL

GRAHAM & CO – HUNTSVILLE BA RT SMITH,

J E R E M Y D. P O P E ,

CCI M, SI OR

CC I M, S I OR

MA N AGIN G B R O K E R

S E NI OR V I C E P RE S I DE NT

barts@grahamcompany.com

jeremyp@grahamcompany.com 2002

J O IN E D G R A HA M & COMPANY:

J OI NE D GRAH AM & COMPANY:

2000

AF F ILIATIO N S/HO NORS:

AF F I L I AT I ONS / H ONORS :

• Certified Commercial Investment Member (CCIM) designation

• Certified Commercial Investment Member (CCIM) designation

• Society of Industrial & Office Realtors (SIOR) designation

• Society of Industrial & Office Realtors (SIOR) designation

• Alabama Commercial Real Estate Center (ACRE), Leadership Council

• Member NAIOP – AL Chapter

• Alabama CCIM Chapter, President of Board of Directors

• Huntsville/Madison County Convention & Visitors Bureau, Board Member

• Huntsville Rotary Club

C L I E NTS I NC LU DE :

• Huntsville Land Trust – Board Member • First Methodist Church – Board of Trustees CLIE N TS IN C LUDE :

• • • •

Sanmina-SCI • Northrop Grumman • Cisco • COPT Stanley Corporation • Wells Fargo Securities • DirecTV ATK • MITRE • Dynetics • AEGON • Orbital Sciences Booz Allen Hamilton • MetLife • Rockwell Collins

• • • • •

AZ Technology • Boneal Aerospace • Custom Assembly Kaman International • Parksite • Space & Rocket Center 9 Round Fitness • Intergraph • Huntsville Hospital Kuehne & Nagel • Harris Corporation International Truck & Engine

G E O R G E TW I TTY, J R .

V I C E P RE S I DE NT

georget@grahamcompany.com TY LER FANNIN G ,

sior

J OI NE D GRAH AM & COMPANY:

2018

VIC E P R E SIDE N T

tylerf@grahamcompany.com J O IN E D G R A HA M & COMPANY:

2007

AF F ILIATIO N S/HO NORS:

• Society of Industrial & Office Realtors (SIOR) designation • CCIM Candidate (Certified Commercial Investment Member) • Huntsville Rotaract Club, Member • Huntsville Committee of 100 Young Professionals Initiative, Member • Huntsville High School Wrestling Coach CLIE N TS IN C LUDE :

• MITRE • Prometric • PNC Bank • Aerospace Corporation • Stephen Gould Corporation • Wells Fargo Securities • Southern Research • DRS • LBYD Engineering

AF F I L I AT I ONS / H ONORS :

Alabama Real Estate Salespersons License – 2018

45

ERIKA HA RLESS

JAS O N B E AC H

R E A L E STATE ASSISTANT

B U I L DI NG E NGI NE E R

erikah@grahamcompany.com

jasonb@grahamcompany.com

J OIN E D G R A HA M & COMPANY:

2004

J OI NE D GRAH AM & COMPANY:

2020

B LANCH ROGERS

JOHN WILLIAMS

P R O P E RTY MA N AGER

B U I L DI NG E NGI NE E R

blanchr@grahamcompany.com

johnw@grahamcompany.com

J OIN E D G R A HA M & COMPANY:

2014

J OI NE D GRAH AM & COMPANY:

2020

A B O U T G R A H A M & CO M PA N Y Founded in 1978, Graham & Co is a full-service commercial real estate firm based in Birmingham, with offices in Birmingham and Huntsville, Alabama and the Gulf Coast, Florida. The company offers professional services including sales, leasing, property management, corporate services, consulting, investment, and development. In response to client demand, Graham has systematically extended its range of services and geographic reach, now serving clients throughout Alabama and several surrounding states.

C O M M U N I T Y I N V O LV E M E N T At Graham & Co we recognize that our clients can enhance the value of their property, business, and/or investment if the community in which they live, and work is vibrant and healthy. Graham and its employees continue to give back to the community in a number of ways including volunteering time and energy in support of a variety of community and social causes.

A F F I L I AT I O N S NAIOP–Commercial Real Estate Development Association SIOR–Society of Industrial & Office Realtors IREM–Institute of Real Estate Management CCIM–Certified Commercial Investment Member CRE–Counselors of Real Estate

LEED–Leadership in Energy and Environmental Design ULI–Urban Land Institute

G R A H A M & CO M PA N Y P E R SO N N E L PRINCIPALS

FINANCE

PROPERTY MANAGEMENT

Mike Graham, CPM, SIOR Steve Graham, MAI, CRE

Charlie Crane Micia Hardaway Janice Ivy David Walker, CFO Tana Welch

Theresa Baker Jacob Kines Thomas Michael Edward Nobinger, PA, FMA, CFM Leslie Williamson

INDUSTRIAL GROUP

Jack Brown, SIOR John Coleman, SIOR Sonny Culp, SIOR Ogden Deaton, SIOR Courtney DeShazo Joelle Rogers Jordan Tubb, SIOR INVESTMENT

Matthew Graham

OFFICE GROUP

Walter Brown, SIOR Sam Carroll IV, SIOR Bo Grisham Jerry Grant, CCIM Matt Gilchrist Lauren Limbaugh Dan Lovell, SIOR, LEED AP Charles H. Simpson

HUNTSVILLE OFFICE

Jason Beach Tyler Fanning, SIOR Erika Harless Jeremy Pope, CCIM, SIOR Blanch Rogers Bart Smith, CCIM, SIOR George Twitty, Jr. John Williams

MARKET RESEARCH ANALYST

Matt Rowan

CLIENT SERVICES MANAGER

Christie Neely DEVELOPMENT

Henry Graham II

GRAPHIC DESIGN

GULF COAST OFFICE

Jason Carnes Kevin Williams, CCIM

Joel Dorning CORPORATE SERVICES

Hayden Scott, MAI

RECEPTION

Eleanor Caver Susan Plate

INDIVIDUAL MEMBERSHIPS

HUNTSVILLE | ALABAMA

2021 OFFICE MARKET SURVEY GRAHAM & CO 305 Church Street Suite 710 Huntsville, AL 35801 256.382.9010 www.GrahamCompany.com