Rail can ease roadway congestion

A NEW CHAPTER IN INDIANA LOGISTICS AND APPRAISAL ACUMEN ALL-RAIL INTERMODAL TERMINAL WITH SERVICE FROM PRINCE RUPERT

AND VANCOUVER (West coast CAN ports) to INDIANA

Appraising Industrial properties are a challenge but multi-modal facilities can be quite tricky- especially with specific and specialty uses and tenant needs to be considered.

Will there be cold storage capacity? Will truck storage be a consideration? Multiple easements and ground leases can play a factor in valuing rents and associated costs to construct.

CASE STUDY-One assignment involved the review of developmental models and cash flow analysis for the reuse of over 1,000 acres, including residential subdivision, office and retail development and public parks. Several levels of skill were required by the consulting and valuations team assigned to this project.

H IGHEST AND BEST USE

Well positioned assets should produce a significant positive cash flow. So there are several attributes an appraiser must consider to value the property and arrive at an accurate cap rate. Such as

AREA DEMOGRAPHICS AND MULTI MODAL INDUSTRIAL

Vast research reflected in the area analyses found in our market reports reveals there is a shortage of suitable space. As the economy is brightening we are seeing landowners actively marketing their parcels. Sales and leasing activity is on an uptick evidenced by numerous sales and leasing signs dotting the landscape. In a recent broker interview, we were told, one factor paving the way for new development, is the lack of building’s that suit companies needs when it comes to multi-modal industrial properties. “More than 700,000 square feet of new industrial space is under construction in Lake and Porter counties, which is the highest amount since 2007, when about 1.2 million square feet was being built” according to Craig Hurvitz, director of research for NAI Hiffman.

Nationally, non-residential construction reached $560 billion in July, up from $543 billion in January, according to the U.S. Census Bureau

MULTI MODAL VS . INTERMODAL

Shifting consumer demand has affected requirements for logistics companies which are causing developers to select major hub cities to construct their distribution industrial facilities. Site requirements include availability of airport, railway and interstate access. In some cases waterway is an additional option.

Yes, it looks like an empty lot, but the concrete semi-trailer "dolly" pads (left) and concrete blocks parking blocks and barbed wire fence on the right indicate that The Indiana Rail Road Company's (INDR) Indianapolis #Intermodal Terminal is about to open! U.S. Customs and Border Patrol approved it as a bonded facility.

The new spat of building has added to an upturn in leasing activity according to ________ brokerage. Many tenants are looking for suitable space and have their financing in place, ready to sign. Lease rates have steadily increased by % over the past year.

INFRASTRUCTURE ’S ROLE

Infrastructure and transport investment projects impact our economy on many levels here in Indiana. The overall supply chain and economic productivity is evidenced by the following:

Indiana is ranked No. 1 in the US for wood office furniture manufacturing and is among the top 10 states in global hardwood lumber exports.

Indiana produces more corn and soybeans than does either Ohio or Michigan. There are also more ethanol plants – meaning more distillers grains – in Indiana.

There is an opportunity for a great number of export shipments from Senate Avenue Terminal, and we see a bright future ahead of us in Indianapolis” according to a Midwest Commodities statement.

.

INRD and CN officials expect containerized goods to move from Asian ports such as Shanghai and Qingdao, China; and Busan, Korea to Indianapolis in less than 24 days

Since 2005, over $2.8 billion in defense-aerospace-related contracts have been awarded to companies in N/E Indiana. Between N & S regions, the commercial defense- and military-related operations sustain thousands of high-paying, high-tech jobs.

$2 billion Naval Surface Warfare Center (NSWC) near Crane in S IN is a real economic powerhouse, pumping some $1.3 million per day into the Indiana economy.

HOW CAN INDIANA CAPTURE AND SEIZE MORE OF THESE OPPORTUNITIES FOR DEFENSE-RELATED GROWTH?

1. Human intellectual and available capital.

2. Cluster companies that fuel the supply chain of parts and supplies of larger companies.

HEADING TO THE FAR EASTDistillers Dried Grains from an Indiana ethanol plant –headed to China & Korea

An energetic expansion underway; this industrial park is a landlords dream

3. Educational centers of excellence.

4. The cost of doing business –competitive stature is strengthened when regional costs are affordable.

5. Developed infrastructure. The presence of interstates, jet-capable runways, railroad networks, industrial development opportunities and existing facilities make a region far more attractive than an area where these critical factors are lacking.

Switch into high gear with your Commercial RE analysis’s with IRR Indy’s help

Integra Realty Resources - Indianapolis is the result of the consolidation of Michael C. Lady Appraisal Company, Inc. with Integra Realty Resources in 1999. Michael C. Lady Appraisal Company, Inc. was originally formed in 1976 to provide commercial, industrial, complex residential and special purpose appraisals for corporate, governmental, and institutional

The substantial number of completed complex property valuation assignments spanning the 29-year experience of the Managing Director and his firm evidences the company’s highly regarded reputation within the real estate community.

HOW MAY I HELP YOU?DEBI S IMON

S IMON09.D@GMAIL .COM 714-495-6825