Ready to sell a warehouse in Missoula – just not sure if now is the right time?
Alright, owners of industrial buildings: you’ve probably been asking yourself, is now the right time to sell your warehouse in Missoula? And we think we have your answer: it’s yes.
Here’s why. From production facilities for the TV show “Yellowstone” to lab space for vaccine production and the big boom in shipping distribution networks, Montana’s industrial facilities have propelled crucial economic development trends. And in places like Missoula, demand is soaring for industrial buildings. At the same time, supply looks slim in the coming months and years.
Missoula’s industrial vacancy rate basically held steady through 2020. That’s really amazing considering almost 150,000 square feet of new space delivered this past year. This means just about all of this product has been quickly absorbed. What’s more, lease rates have reflected this demand bumping on average just over 23% over 2019 to $8.25 per square foot.
Lack of product has resulted in growing property values for industrial owners. That’s especially true for those of you in areas with high barriers to entry. Specifically, we’re looking at you Midtown and South Missoula. The development pipeline for industrial space is pretty scarce thus far. There are very few spec projects planned for delivery. We are tracking a handful of development sites, but those are currently under contract and won’t be available for new users.
If a developer or industrial property owner considering a speculative industrial development, be sure to include dock high or truck well loading, excess yard areas for storage of goods, smaller office footprints and at least 24 foot clear height. So, if you are contemplating selling your warehouse in Missoula, now is feeling like a good time to maximize value.