July 7, 2022 11:00 AM
Newmark announces the sale of N9246 State Road 80, an approximately 381,000-square-foot industrial property in Necedah, Wisconsin. The property traded from MVP Logistics to an undisclosed Milwaukee-based investment firm for $3 million. Newmark Director Adam Matson, SIOR and Associate Director Patrick Hanrahan represented the seller.
N9246 State Road 80 is a single-story, 381,000-square-foot industrial building situated on 67.75 acres of land. The building comprises 198,000 square feet of warehouse space and 183,000 square feet of office space with the option to convert the office space to warehouse. Building features include 18 dock doors, five drive-in doors, 14- to 23.5-foot clear height and 2,000-amp/480-volt power.
The property is in Necedah, Wisconsin—the approximate midpoint between Minneapolis and Chicago—and offers convenient access to Interstates 90 and 94, providing a connection to major population centers across the Midwest.
“Investors are looking for industrial opportunities that support their e-commerce needs,” said Matson. “With a prime distribution location approximately equidistant from Minneapolis and Chicago, this sale is a valuable illustration of that trend and of continued investor demand.”
Industrial remains the top-performing property type in U.S. commercial real estate in terms of total returns and rental growth, according to Newmark Research. This has propelled investment volume up 50% year-over-year to $33.9 billion during the first quarter of 2022. Bidding for well-located distribution and warehouse product has put upward pressure on pricing, with major market pricing reaching a record $333 per square foot. Given the high levels of rental growth in recent years and high inflation, a pricing premium is often achieved on industrial properties with lower lease terms remaining, so that investors can more quickly mark-to-market rents and boost returns.
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues of nearly $3.1 billion for the twelve months ending March 31, 2022. Newmark’s company-owned offices, together with its business partners, operate from approximately 170 offices with 6,300 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
Discussion of Forward-Looking Statements about Newmark
Statements in this document regarding Newmark that are not historical facts are “forward-looking statements” that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the effects of the COVID-19 pandemic on the Company’s business, results, financial position, liquidity and outlook, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark’s Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.