Area industrial vacancy rate declines in 4Q

The Springfield-area industrial vacancy rate declined in the fourth quarter, while office and retail rates showed little change, according to the latest Xceligent commercial real estate report.

The Market Trends report, released Jan. 15, covers Springfield, Strafford, Rogersville, Ozark, Nixa, Republic and Willard.

Industrial
Of the 31.1 million square feet of space in the area's industrial market, 2.1 million remained vacant in the fourth quarter, resulting in a vacancy rate of 6.8 percent. In the area, 93,471 square feet of industrial space was absorbed during the quarter.

At 12.9 percent, manufacturing properties had the highest vacancy rate, while warehouse and distribution properties had the lowest rate of 4.3 percent, according to Xceligent.

Among recent notable moves in the industry, the report pointed to Arrowhead Building Supply Inc.'s relocation to a $2.7 million, 42,000-square-foot building at 3020 N. Martin Ave. in Springfield.

Office
The Springfield-area fourth-quarter office vacancy rate increased to 10.5 percent, two-tenths of a point higher than the same quarter of 2011.

The area's vacant square footage in the office sector was 657,957 of the total 6.2 million square feet of space, according to the report.

Lathrop & Gage LLP's downtown lease from Jared Enterprises in the BKD LLP building was one of two moves resulting in positive growth in occupied space in 2012. The Nixa market also experience positive growth in occupied space last year, according to Xceligent.

Retail
In the area, 871,803 square feet of the total 16.8 million of retail inventory was vacant during the fourth quarter, creating a vacancy rate of 5.2 percent. The rate increased two-tenths of a point from the same quarter of 2011.

During the fourth quarter, 56,000 square feet of space was absorbed via leases; none was purchased. Overall, the area had a negative fourth-quarter absorption rate of 17,830 square feet, the report said.

According to Xceligent, the majority of new construction or added space in the market was the result of owner-occupied properties, such as Wal-Mart's four Neighborhood Markets added in 2012.