WHEN NATIONAL REAL ESTATE Investor compiled its annual survey of the largest industrial developers this year, Atlanta-based IDI assumed its familiar spot near the top of the listing, placing in the No. 2 spot. But, like so many other players in the industrial marketplace, IDI has felt the effects of the economic recession and has scaled back its development load in response.
The company projects it will start or complete 9 million sq. ft. of industrial space in 2002, a 38% drop from the 14.5 million sq. ft. recorded for 2001.
IDI simply is part of a nationwide trend. After soaring for much of the late 1990s and 2000,levels have come crashing back to earth in light of the recession. In fourth-quarter 2000, 121.8 million sq. ft. of industrial space was under construction, according to New York-based Grubb & Ellis Co. By the first quarter of this year, the total had plunged 53%, to 56.9 million sq. ft.
Despite the construction slowdown, Greg Gregory, president and CEO of IDI, claims this is no time to panic. “There would be more concern if capital was expensive, but it's not,” he says. “Secondly, we don't see restrictive credit. If you've got a good project, if you've got leasing, if the market is there, you can borrow the money. For those two reasons, it's much less painful going through this cycle than some other downturns. Still, you've got to be very, very careful.”
Even in the midst of the recession, IDI has some major projects under way. The company recently completed an 832,000 sq. ft. distribution facility for Toys “R” Us in Midlothian, Texas, just south of Dallas. The building features 60 ft. clear ceiling heights, an unusually tall industrial structure. “We would never build a building like that on a speculative basis, for example,” Gregory says.
In August, the company is slated to complete a 780,616 sq. ft. headquarters and distribution facility in Addison, Ill., for The Pampered Chef, a maker of kitchen tools. Located on a 42-acre plot of land, the building will feature approximately 180,000 sq. ft. of office space and 1,100 parking slots. Also, in Pompano Beach, Fla., PublixDirect, a new home grocery-delivery venture of the Publix grocery store chain, has leased a 139,000 sq. ft. distribution center developed by IDI.
Gregory says that come this fall, industrial developers should be able to ascertain how strong of an economic recovery is taking place. “That's because July and August are always slow in terms of leasing — period,” he says. “But starting in September and going through the end of this year, we'll really get a sense of what kind of rebound we're dealing with by seeing what the pace of leasing is.”
Top 25 Industrial Developers
Survey rankings were based on totals provided by the participating companies and listed in square feet. Developers were asked to provide their volume of activity for the 2001 calendar year, including the amount of space developed during the year or under construction as of Dec. 31, 2001.
14100 E. 35th Place, Aurora, CO 80011
Phone: (303) 375-9292
Fax: (303) 375-8581
Web site: www.prologis.com
Officers: K. Dane Brooksher, Chairman/CEO; Irving F. Lyons, Vice Chairman/Chief Investment Officer; Walter C. Rakowich, Managing Director/CFO
Total Industrial Space Developed or Under Construction: 22.5 million sq. ft.
Suite 1500, Monarch Tower
3424 Peachtree Rd. N.E., Atlanta, GA 30326
Phone: (404) 479-4000
Fax: (404) 479-4115
Web site: www.idi.com
Officers: Henry D. “Greg” Gregory Jr., President/CEO; Tim Gunter, Sr. VP/COO; David Birdwell, Sr. VP/CFO
Total Industrial Space Developed or Under Construction: 14.5 million sq. ft.
12377 Merit Dr., Dallas, TX 75251
Phone: (972) 788-3000
Fax: (972) 383-1616
Web site: www.hillwood.com
Officers: Ross Perot Jr., Chairman; Mike Berry, President, Hillwood Properties; Todd Platt, CEO, Hillwood Investments
Total Industrial Space Developed or Under Construction: 12.5 million sq. ft.
4 Duke Realty Corp.
600 E. 96th St., Suite 100
Indianapolis, IN 46240
Phone: (317) 808-6000
Fax: (317) 808-6786
Web site: www.dukerealty.com
Officers: Thomas Hefner, Chairman/CEO; Gary Burk, Co-COO; Denny Oklak, Co-COO
Total Industrial Space Developed or Under Construction: 12 million sq. ft.
5 Opus Group
10350 Bren Rd. W., Minnetonka, MN 55343
Phone: (952) 656-4444
Fax: (952) 656-4750
Web site: www.opuscorp.com
Officers: Gerald Rauenhorst, Founding Chairman; Keith Bednarowski, Chairman; Mark Rauenhorst, President/CEO
Total Industrial Space Developed or Under Construction: 10.9 million sq. ft.
6 Alliance Commercial
704 N. Deerpath Dr., Vernon Hills, IL 60061
Phone: (847) 573-9911
Fax: (847) 573-9815
Web site: www.alliance-commercial.com
Officers: Alan Shaw, Director; Robert Cambo, Director; Brian Buell, Director
Total Industrial Space Developed or Under Construction: 8.9 million sq. ft.
7 Transwestern Commercial Services
150 N. Wacker Dr., Suite 800
, IL 60606
Phone: (312) 499-1900
Fax: (312) 499-1904
Web site: www.transwestern.net
Officers: Robert D. Duncan, Chairman; Steven D. Bandolik, President/CEO
Total Industrial Space Developed or Under Construction: 8.5 million sq. ft.
8 First Industrial Realty Trust Inc.
311 S. Wacker Dr., Suite 4000
Chicago, IL 60606
Phone: (312) 344-4300
Fax: (312) 922-6320
Web site: www.firstindustrial.com
Officers: Michael W. Brennan, CEO/President; Johannson L. Yap, Chief Investment Officer; Michael J. Havala, CFO
Total Industrial Space Developed or Under Construction: 5.6 million sq. ft.
9 AMB Property Corp.
Pier 1, Bay 1, San Francisco, CA 94111
Phone: (415) 394-9000
Fax: (415) 394-9001
Web site: www.amb.com
Officers: Hamid R. Moghadam, CEO/Chairman; W. Blake Baird, President; Bruce H. Freedman, Exec. VP, Head of Real Estate Operations
Total Industrial Space Developed or Under Construction: 5.3 million sq. ft.
10 Panattoni Development Co.
8401 Jackson Rd., Sacramento, CA 95826
Phone: (916) 381-1561
Fax: (916) 381-7639
Web site: www.panattoni.com
Officers: Carl Panattoni, CEO; Dudley Mitchell, President; Tom McCormick, COO
Total Industrial Space Developed or Under Construction: 5.2 million sq. ft.
11 Trammell Crow Co.
2001 Ross Ave., Suite 3400
Dallas, TX 75201
Phone: (214) 863-3000
Fax: (214) 863-3138
Web site: www.trammellcrow.com
Officers: Robert E. Sulentic, Chairman/CEO; H. Pryor Blackwell, President, Development and Investment Group; William F. Concannon, President, Global Services Group
Total Industrial Space Developed or Under Construction: 5.1 million sq. ft.
2800 Post Oak Blvd., Houston, TX 77056-6118
Phone: (713) 621-8000
Fax: (713) 966-2053
Web site: www.hines.com
Officers: Jeffrey C. Hines, President; Gerald D. Hines, Chairman; Hastings Johnson, Exec. VP/CFO
Total Industrial Space Developed or Under Construction: 5.02 million sq. ft.
13 Crow Holdings Industrial Trust
2100 McKinney Ave., Suite 700
Dallas, TX 75201
Phone: (214) 661-8190
Fax: (214) 661-8034
Web site: www.chindustrial.com
Officers: James C. Hendricks, President/CEO; John E. Thomas, CIO; John R. Killian, CFO
Total Industrial Space Developed or Under Construction: 4.96 million sq. ft.
14 Higgins Development Partners
101 E. Erie, Suite 800, Chicago, IL 60611
Phone: (312) 943-4999
Fax: (312) 943-9768
Web site: www.higginsdevelopment.com
Officers: John W. Higgins, Chairman/CEO; Jerry Pientka, President; Tom Samuels, Exec. VP
Total Industrial Space Developed or Under Construction: 4.8 million sq. ft.
15 CarrAmerica Realty Corp.
1850 K St. N.W., Suite 500
Washington, DC 20006
Phone: (202) 729-1700
Fax: (202) 729-1150
Web site: www.carramerica.com
Officers: Thomas A. Carr, CEO; Philip L. Hawkins, President/COO; Stephen E. Riffee, CFO
Total Industrial Space Developed or Under Construction: 2.2 million sq. ft.
16 Liberty Property Trust
65 Valley Stream Pkwy.
Malvern, PA 19355
Phone: (610) 648-1700
Fax: (610) 644-4129
Web site: www.libertyproperty.com
Officers: Willard G. Rouse III, Chairman/CEO; William P. Hankowsky, President/Chief Investment Officer; Robert E. Fenza, Exec. VP/COO
Total Industrial Space Developed or Under Construction: 2.1 million sq. ft.
17 Lincoln Property Co.
500 N. Akard, Suite 3300, Dallas, TX 75201
Phone: (214) 740-3300
Fax: (214) 740-3441
Web site: www.lincolnproperty.com
Officers: Mack Pogue, Chairman; Tim Byrne, President/CEO, Residential Division; Bill Duvall, President/CEO, Commercial Division
Total Industrial Space Developed or Under Construction: 2.0 million sq. ft.
18 McShane Corp.
9550 W. Higgins Rd., Suite 200
Rosemont, IL 60018
Phone: (847) 292-4300
Fax: (847) 292-4313
Web site: www.mcshane.com
Officers: Hunter Barrier, President; Robert G. Byron, Chief Investment Officer; James E. McGill, Exec. VP
Total Industrial Space Developed or Under Construction: 1.88 million sq. ft.
180 North LaSalle St., Chicago, IL 60101
Phone: (312) 855-5700
Fax: (312) 855-5803
Web site: www.heitman.com
Officers: Jerome J. Claeys III, Chairman; Maury Tognarelli, President/CEO
Total Industrial Space Developed or Under Construction: 1.85 million sq. ft.
20 Champion Partners
15601 Dallas Pkwy., Suite 100
Addison, TX 75001
Phone: (972) 490-5600
Fax: (972) 490-5599
Web site: www.championpartners.com
Officers: Jeff Swope, Managing Partner; Steve Modory, Chief Investment Officer; Michele Wheeler, CFO
Total Industrial Space Developed or Under Construction: 1.81 million sq. ft.
21 LUI Realty Advisors/The Core Group, USA
Two Sound View Dr., Greenwich, CT 06830
Phone: (203) 869-0100
Fax: (978) 526-9801
Web site: www.luicoregroup.com
Officers: Tim Girian, Principal; Brad Core, Principal; Keith Core, Principal
Total Industrial Space Developed or Under Construction: 1.80 million sq. ft.
21 Robert Pattillo Properties
2987 Clairmont Rd., Suite 550
Atlanta, GA 30329
Phone: (800) 713-2021
Fax: (404) 235-3541
Web site: www.pattillo.com
Officers: Barbara Vanyo, President; Clay Reese, Counsel; Danny Wald, CFO
Total Industrial Space Developed or Under Construction: 1.80 million sq. ft.
23 Voit Development Co.
21700 Oxnard St., Woodland Hills, CA 91367
Phone: (818) 593-6330
Fax: (818) 593-6274
Web site: www.voitco.com
Officers: Robert D. Voit, Chairman/CEO; David Allison, Exec. VP; Robin Rousselet, CFO
Total Industrial Space Developed or Under Construction: 1.78 million sq. ft.
24 McDonald Development Co.
3715 Northside Pkwy., Bld. 300, Suite 650
Atlanta, GA 30327
Phone: (404) 239-0885
Fax: (404) 239-0877
Officers: John R. McDonald, President; Robert P. McLeod, CFO; Tracy A. White, VP, Development
Total Industrial Space Developed or Under Construction: 1.7 million sq. ft.
25 DP Partners
1200 Financial Blvd., Reno, NV 89502
Phone: (775) 858-8080
Fax: (775) 856-0831
Web site: www.partnerwithdp.com
Officers: Michael C. Dermody, President/CEO; Bruce D. Storey, Exec. VP/CFO; Aaron H. Paris, Exec. VP/COO
Total Industrial Space Developed or Under Construction: 1.5 million sq. ft.