Refrigerated building- Analysis of St. Louis, Missouri building sale and building lease transactions.

An outline that applies in analyzing refrigerated building real estate sales.

This outline pertains only to potential prospect or customer base that are in need of refrigerated warehouse buildings. Refrigerated buildings are any industrial property that has more than 15% of the building's floor space capable of +42° to -10° warehouse storage temperature capabilities. Generally, of all refrigerated buildings 75% have freezer storage capabilities, and 25% of refrigerated buildings have cooler storage capabilities. Therefore the 75% of all prospects would need freezer warehouse storage capabilities and other 25% would need cooler warehouse space the prospect needs additional capacity. Transaction history on refrigerated building shows that 7 out of 10 real estate transactions are for leasing refrigerated space, and 3 are sale transactions. Probably the reason for so many lease transactions is that a company needs additional space for some interim period. In all industrial real estate transactions, 80 to 85% of sale or lease transactions are with local companies which are purchasing or leasing local building. The remaining 15 to 20% are regional or national companies that need a presence in that local market therefore they need to purchase or lease a local building. An example if the cooler warehouse building was for sale in St. Louis then the prospect base would be 25% of the St. Louis refrigerated market, and then if the building would be only for sale would leave 30% of those prospects which are "Ready, Willing and Able" to purchase a cooler building in the St. Louis market being a viable candidate for the St. Louis refrigerated building. Jim Cronin is a refrigerated building real estate broker from St. Louis, Missouri at 314-994-0577 or e-mail J.Cronin@hawkds.com       www.hawkds.com