NORTHEAST SNAPSHOT, NOVEMBER 2004
Upstate New York Industrial Market
Although many say that manufacturing is suffering in New York
state, it is still vital, especially in Upstate New York.
Manufacturing jobs in the Upstate area are above the national
average. Clean, cutting-edge manufacturing is one of the leaders
for Upstate job creation and a great hope for the future.
If you count the spin-off effects of manufacturing, those
jobs account for about half of all Upstate jobs. Auto parts,
computer chips and healthcare are some examples of industries
finding success in the area. When high-tech is bantered about,
people forget that manufacturing is where high-tech products
hit the ground. The bioinformatic industry is alive and well
in Upstate New York, and has financial backing from both the
private and public sector.
The Buffalo-Niagara region is looking to the future in the
area of bioinformatics. The partnership of private and public
sector funding has produced a $290 million investment for
the Center of Excellence in bioinformatics at Roswell Park
Cancer Institute in the city of Buffalo. The 300,000-square-foot
facility is currently under construction.
The region is in need of high bay space from 15,000 to 100,000
square feet. A number of new products are proposed or under
construction to meet demand. The Broadway Development Park
has plans for a total of 300,000 square feet and currently
has 70,000 square feet under construction. In Lancaster, New
York, East Port Business Park is being developed and will
boast 1 million square feet of warehouse/distribution space.
Colvin Woods, an office and industrial park in suburban Tonawanda,
has 100,000 square feet under construction and the potential
for a total of 330,000 square feet over the next 6 to 10 years.
Also, in the Buffalo-Niagara region, General Motors is nearing
completion of its 700,000-square-foot plant expansion. The
$300 million planned expansion has helped retain 600 jobs
and will continue to spur economic activity in western New
York. Ford plans to invest $50 million in planned development
over the next 5 years that will retain and create jobs. Quebecor
Printing is planning to invest $15 million to expand its operations
in Cheektowaga, a suburb of Buffalo. CertainTeed Vinyl Fencing
is building a new $13 million facility to house its operation
near Buffalos Waterfront. CertainTeed will be expanding
its job force and reclaiming land that previously had been
designated a brownfield site.
Recent leases in the Buffalo-Niagara region include Niagara
Chocolates leasing 65,000 square feet at 40 Sonwil Drive,
Cheektowaga; Quality Park signing for 55,000 square feet at
2345 Walden Avenue, Cheektowaga; and SkuLogix moving into
81,000 square feet at 25 Dewberry Street, Cheektowaga.
There is considerable new activity within the city of Buffalo
as well, as older properties undergo adaptive re-use. The
Exchange Street area in Buffalo is reinventing itself as an
industrial area with such companies as Adelphia, Colad and
Graphic Controls moving in, as well as having land available
for future development.
The developers in the Buffalo-Niagara region of New York are
well established and control the majority of prime development
areas. However, Kissling Interest LLC of New York City has
acquired several properties and established a foothold in
western New York. Additionally, there are several Canadian
developers that are poised to move into the area. When they
find a suitable situation, they will invest in flex space
or large warehouses to accommodate Canadian manufacturers
and warehousers. Developers and industrial parks in the region
are looking to retain their current business base and entice
Canadian investment to bolster the regional economy. The Canadian
dollar has grown stronger in recent months and is anticipated
to have a positive influence on Upstate New York as Canadian
manufacturers look to establish a presence in the United States.
Cammille L. Kantowski, Corporate Advisory Team,
Industrial, Hunt Commercial Real Estate Corp.
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