Industrial Asset Stats by Salem Zip Code
Industrial Asset Stats by Salem Zip Code:
Central Salem has a total of 6.6 million square feet of industrial buildings, and zero square feet currently under construction. The vacancy rate is tight at 1.9%, with rents averaging $9.15 annually – up 7.1% year over year. Sales are transacting at $88 per square foot, which is up 8.3% year over year. Investment transactions are taking place at an average 6.3% which is creeping up as investors seek income to compensate for drastically escalating interest rates.
South Salem has a total of 5.3 million square feet, again with zero square feet currently under construction. 34,700 square feet has been given back to the market, leading to a temporarily escalated vacancy rate of 11.6%. Rents are strong at $9.54 per square foot annually, translating into an average market sale price of $94 per foot and a cap rate of 6.3% which is climbing.
North Salem & Keizer are thin in inventory, only 349,000 square feet. Vacancy is low at 3%, and 10,000 square feet has been given back to the market in the last 12 months. Rents are strong at $9.34 per foot annually, and sale transactions are averaging a whopping $130 per foot. Cap rates are stable here at 6.2%, matching that of a year ago.
West Salem has 1.5 million square feet of industrial assets, and zero under construction. 117,000 SF has been absorbed by tenants in the last 12 months, but this area still maintains a high vacancy rate of 14%. Rents are relatively low at $6.59 per square foot, but these are up 9.5% – beating inflationary figures. Sales are averaging $86/SF and the market average cap rate is 6.2% per transaction and climbing, which favors buyers.
North and east Salem has 1.8 million square feet and zero currently under construction. 28,200 square feet have been absorbed by tenants, leading to lowering vacancy rates of 1.3%. Rents average $9.13 per square foot annually translating to $111 per square foot on sale transactions. The market cap rate is 6%, again notching up a tenth of a percent year over year.
The thinnest of all Salem zip codes relative to industrial assets at only 17,100 square feet, this area has zero vacancy and market rents averaging $9.69 annually per square foot. Sales are transacting at $97 per square foot, and at a 7.1% cap rate.
Southeast Salem boasts 2.9 million square feet, with 212,000 currently under construction. With its close proximity to Interstate 5, its current zero vacancy factor is to be expected. Rents average $8.79 per square foot annually, and sales are transacting at $105 per foot. The high density of national credit tenants lead to the lowest cap rate average of 5.8% per transaction.