VOL. 110 | NO. 81 | Wednesday, April 24, 1996
04-24 chg industrial
Warehouse starts total
1.5 million square feet
in first quarter 1996
By CAMILLE H. GAMBLE
The Daily News
Warehouse starts for the first quarter of 1996 for Shelby County totaled more than 1.46 million square feet, according to building permits filed in the building code enforcement office and compiled by The Daily News Online.
"The activity in 95 was very strong, and in 96 we expect it to continue to be strong," said Kurt Nelson, leasing representative for IDI. "The number of huge, big-box tenants is sporadic, but they are still coming to town. We expect that the demand will continue to keep pace with the demand of the last couple of years."
"It appears that the amount of activity is relatively constant," said Joel Fulmer of Boyle Investment Co. "We had almost 7 million square feet of leases signed in 1994 and again in 1995. So while there are an extraordinary number of starts, the starts are demand-driven and not capital-driven as they were in the early 90s when there was overbuilding.
"We think that the market is in equilibrium, and we are very excited about the market and the amount of demand that we are seeing," Fulmer said.
Boyle Investment is involved with the development of a 117,000-square-foot free-standing, multiple-occupancy warehouse building in southeast Memphis for the Acee Co. The building permit value of the project is $2.04 million. The building is scheduled to be ready in August.
Boyle will lease and manage the Acee property.
Boyle also is building a 102,500-square-foot speculative warehouse building at 4105 S. Mendenhall.
"Its a higher-finished building than most normal warehouse buildings," Fulmer said. "Weve got two-story glass on each end of the building and a higher parking ratio than what is normally with a building of that type.
"It fits into a niche market for someone who needs more exposure and a nicer facility than just a normal bulk distribution facility."
Mid America Construction Co. is the general contractor for both Boyle projects.
"Both buildings are designed to be duplex buildings so we can split them into two spaces if we need to," Fulmer said.
Future projects for Boyle include a 100,000-square-foot warehouse for the National Guard Products headquarters on Raines Road, east of Outland Road. Also in the design phase for Boyle is a 25,000-square-foot building for S/G Industries on Macon Road, east of Cordova.
In March, Industrial Developments International started the development of a 650,000-square-foot warehouse for Cummins Engine. The building should be finished in the summer. Kajima Construction Services Inc. is the general contractor for the build-to-suit project.
One major warehouse project was started in the first quarter on Presidents Island. Newbern Fabricating of Newbern is the general contractor on a 52,000-square-foot bulk warehouse for SF Services of Little Rock, Ark. The one-story fertilizer warehouse will have access to barges and railroad cars when complete, said Bud Cude of Newbern Fabricating. The building will be located at 2256 Wharf St.