REBusinessOnline

No Slowdown in Demand for Industrial Space

The combined forces of population growth, increased online shopping and demand for last-mile fulfillment centers are driving development of and investment in industrial assets in major markets. Natural population growth translates to more aggregate demand and consumption of goods and services. The rise of e-commerce has guaranteed that a growing percentage of those products will be ordered online and delivered to end users within a few days, hence the need for more fulfillment and distribution …

If You Build It, Will They Come? Indy Industrial Tenants Demand Smaller Spaces

Recently, my national research colleagues released “The Top 10 Commercial Real Estate Trends for 2019,” a piece featuring predictions on subjects such as trade tensions, labor shortages and the evolution of “co-everything.” Of all the predictions, one stood out as being especially relevant for the Indianapolis industrial market as we inch further into 2019. Indianapolis has lacked industrial space for occupiers seeking to grow, particularly in smaller segments. The great news is that …

Quality of Labor, Land Availability Buoy Fort Worth Industrial Market

The DFW industrial market has enjoyed unprecedented growth over this seven-year development cycle.  The market has added approximately 118 million square feet of industrial inventory over that period and absorbed 143 million square feet. Population growth in the Dallas-Fort Worth (DFW) metroplex, the state of Texas and the south-central U.S. region, as well as growth in e-commerce, are the primary tailwinds propelling this extraordinary growth. Ever since Hillwood broke ground on …

E-Commerce, Distribution Users Spar for Labor

Industrial users in Texas, particularly e-commerce firms operating out of large-format distribution centers, are finding it harder and harder to staff their facilities with experienced, talented workers.  Development of both speculative and build-to-suit warehouses and distribution centers has been on fire in major Texas markets over the last several years, driven by an abundance of land, exceptional infrastructure and climbing populations. According to CoStar Group, Dallas-Fort Worth’s …

Chicago Industrial Predictions: Absorption May Slow in Second Half of 2019

As we begin 2019, there are several opposing market forces at work that are sure to influence each of us, and our respective firms and clients. These market dynamics will ultimately dictate who has a great year and why — or why not.  This year, it seems the signals are more mixed than in the past several years, so making predictions about the local industrial real estate market is somewhat daunting. Nonetheless, here is what to look for in 2019. [caption id="attachment_221391" …

Low Vacancy, High Demand Define Hawaii’s Industrial Market

When we last reported on the health of Oahu’s industrial market in December 2017, we offered rationale for a then 1.88 percent industrial vacancy rate. This was fueled by demand from contractors building large residential condo developments, the construction of a nearly $10 billion light rail system (voter approved at less than $5 billion), booming tourism and military sectors and large public infrastructure improvements. [caption id="attachment_221523" align="alignright" width="100"] …

Will a Tight Labor Market Limit St. Louis Industrial Growth?

The St. Louis industrial market is in the middle of a significant construction boom. Total square footage under construction is at a record-high 6.3 million square feet, with 2.8 million square feet of activity completed in 2018. The last two years have experienced historically high levels of overall net absorption with 4 million square feet in 2017 and 5.6 million square feet in 2016. These absorption levels are significantly higher than pre-recession market numbers.   The expected 3 …

Why Southern Maine’s Industrial Market is Headed for Rockier 2019

My mind wandered recently on a long drive, as it often does. I had the music going and, in typical Maine fashion, cell phone coverage was spotty.  It was nice to effortlessly jump from thoughts of the upcoming holiday season with my young kids, to my 20-year high school reunion and old friends, to the promise of another long playoff run by my beloved Patriots.  But as I passed commercial buildings and warehouses, my attention drifted to the bricks and mortar of the metro Portland …

OKC Industrial Market Should Benefit From Rising Labor Costs Across Central U.S.

From a manufacturing perspective, Oklahoma City has historically been considered a “tertiary market” when stacked against South Central and Midwest power players such as Dallas-Fort Worth (DFW), Houston, Kansas City, San Antonio, Austin and Denver. [caption id="attachment_220204" align="alignright" width="100"] John Lenochan, CBRE[/caption] As large manufacturing users consider multiple markets in the Central United States, Oklahoma City is often included in the initial list but …

Johnson County, Kansas: A Midwest Hub for Industry and Innovation

Once referred to by developers as a “well-kept secret,” the Kansas City metro area is quickly developing a global reputation for skilled workforce, strong infrastructure, affordable housing and competitive overhead costs like transportation and utilities.  “Kansas City is a region rising. We are dispelling the notion that Kansas City is a well-kept secret,” says Tim Cowden, president and CEO of Kansas City Area Development Council. “There is growing recognition among site locators …

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