300 George Street
- 300 George Street, East Alton, IL 62024
- Property Type:
- Single Tenant
- Cap Rate:
- 9.58% cap
- Square Feet:
- 3,700 sqft
- Lot Size:
- 0.43 Acres
- Price Per Square Foot:
- Year Built:
- The Tenant, SGS, is the Nation’s Leading Testing, Inspection, and Certification Company
- SGS Has 3,350 Employees, with Operations in All 50 States
- The Tenant Has Been Located in this Property Since 1990
- The Illinois Submarket of Saint Louis is a High Barrier-to-Entry Submarket with a Vacancy of 4.2%, a Decrease of 3.5% Year-Over-Year
- With the Low Vacancy Rate this Submarket’s Rent Has Grown at 10.9% Year-Over-Year
- Brand New Roof Installed in 2022, and a Fenced in Parking Lot with Gate
- The Building Sits on 0.43 Acres, Allowing for Expansion
Marcus & Millichap is pleased to present the opportunity to acquire the property located at 300 George Street in East Alton, Illinois, leased to SGS North America, Inc. The subject property consists of approximately 3,700 square feet of flex space and is situated on 0.43 acres of land. The asset features a new roof installed in 2022, a fenced in parking lot with gate access, and ample land, allowing for expansion. Incorporated in the U.S. in 1980, SGS has occupied the property for 32 years. With 3,350 employees operating in all 50 states, SGS is the nation’s leading testing, inspection, and certification company.
The subject property is situated within the Illinois submarket, containing a massive 52.1 million square feet of industrial space. Logistics facilities, such as warehouses, dominate the inventory, making up nearly 74 percent, followed by specialized space (including manufacturing space) and flex properties at about 24 percent and 2 percent, respectively. Over the last four quarters, the vacancy rate in the submarket has dropped by 350 basis points to 4.2 percent in the third quarter of 2022. The high barrier-to-entry has helped push market rent growth in the Illinois submarket to a record 10.9 percent annually during Q3. While the submarket has a sizable 2.8 million square feet of industrial space under construction, representing 5.4 percent of inventory, all but 62,000 square feet is concentrated in properties over 100,000 square feet (CoStar). As a result, rent growth and vacancies among smaller properties will not be directly impacted by new supply for the foreseeable future.
The Saint Louis metro is near the geographic center of the United States, within 500 miles of one-third of the U.S. population. About 2.8 million people call the metro area home, with Saint Louis hosting over 319,000 residents. Located at the confluence of the Mississippi and Missouri rivers, the metro area encompasses counties in both Missouri and Illinois. The economy of Saint Louis is anchored by the logistics industry, with trade, transportation, and utilities accounting for the largest share of employment. As Saint Louis continues to be a desirable industrial market for investors, a recent report ranked Saint Louis as the tenth industrial market to watch in 2019. The Gateway Arch continues to serve as a major tourist attraction and residents enjoy a high quality of life with a variety of entertainment options.