Posts in Industrial
What do Industrial Tenants want?

Ask any industrial broker about the most important feature to industrial tenants looking for a new facility and they’ll say “location.” After that, it’s probably going to be clear height, with at least 32 feet, but preferably 36 or 40 feet, especially for large users (those taking 500 to 1,000 sq. ft. or more). But according to Blaine Kelley, Atlanta-based senior vice president of the global supply chain practice with real estate services firm CBRE, tenants will trade off all other physical features for proximity to customers, labor and suppliers.

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Industrial Market Predictions in 2018

The industrial sector flourished in 2017. Real estate research firm Real Capital Analytics (RCA) noted in a recent report that the industrial sector, seeing gains from rising e-commerce sales and the resulting need for industrial facilities, was the only commercial real estate sector last year that saw an increase in transaction activity from January through November. NREI discussed possible trends to look out for in 2018 with several market observers.

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Possible Future for Dense U.S. Cities: Multi-Story Industrial Assets

Multi-story warehouses are already common in Asia, but the concept is now taking off in supply-constrained American cities. Four multilevel projects are currently under construction or will soon break ground in Seattle, San Francisco and New York City, and many more planned projects will be announced in the coming months, according to Rob Kossar, vice chairman and head of the Northeast industrial region at real estate services firm JLL.

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Industrial Properties are Still the Apple of the Eye of Investors

Despite increasing valuations and compressed cap rates, industrial/logistics real estate remains “the prettiest girl at the dance,” says Mark Glagola, senior managing director of the Mid-Atlantic capital markets group at brokerage firm Transwestern. “Investors are buying at lower caps, but supply is overwhelmed by demand,” he notes.

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Is Industrial The Newest Favorite of CRE Financing?

Over the last few years, industrial properties have risen through the ranksamong banks and other commercial real estate lenders to become financing’s new sweetheart property type. These include core market warehouse and distribution centers, refrigeration/cold storage centers, flex buildings, manufacturing properties and R&D facilities.

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Are Industrial Values Getting Significantly High?

Over the last few years, investor interest in industrial real estate has risen to a fever pitch.

Rent growth and cap rate compression are propelling investor interest in industrial properties, according to David Bitner, head of Americas capital markets research with real estate services firm Cushman & Wakefield. He notes that industrial asset values, including capital and appreciation, grew by 13.1 percent in 2017 alone, compared to 7.0 percent overall for all other commercial real estate sectors.

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