"Land prices have been driven up not as a result of that, but as a result of the state DOT's condemning land for the construction of a new urban loop or limited access beltway being built," says David Hagan, owner and founder of Greensboro-based Hagan Properties.

The beltway will eventually encircle Greensboro. Land prices around the airport traditionally have appreciated about 3%, but that number has risen to 7% or 8%, Hagan tells Globe St.com.

He sees no influx, however, of outside buyers looking to purchase land prior to the FedEx development.

"There's not been any significant speculative third parties coming in, but I do think there's a lot of existing owners who are seeing dollar signs and hoping to make a real windfall," he says.

There's a lot of available land around the airport, but much of it will have to be rezoned from agricultural to industrial for it to be developed, Hagan says.

Industrial land prices for 10 acres or less typically can cost anywhere from $50,000 an acre ($1.15 per sf) to $100,000 an acre ($2.30 per sf). But buys of multiple acres, say 100 or more, might bring that cost down to $25,000 per acre (57 cents per sf) to $30,000 an acre (69 cents per sf).

Class A industrial space is renting for $3.85 per sf to $4.10 per sf, Hagan says. Office rates for class A are in the $18 per sf to $19.50 per sf range.

"There's a fair amount of vacancy of industrial product at the airport in sub-markets, but very little office vacancies," Hagan says.

One reason is that industrial users often prefer the airport location because they can service the area's three major markets in Greensboro, Winston-Salem and High Point.

Even more development is expected, however, when the Fed-Ex hub opens, possibly in 2005. The Piedmont Triad International Airport won over other facilities in Charlotte and Raleigh. The project faces environmental approvals as well as a go-ahead nod from the FAA.

The major source of opposition to the project has come from residents of nearby Guilford County who fear nighttime noise and more traffic. But ironically, that area will be one of the most affected by the project.

Much anticipated growth will be to the southwest of the airport near High Point, Hagan believes. That's because the area has sewer and water capabilities.

Instant Insights /

Land Values Escalate Near Planned FedEx Hub

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