Developers are under more pressure than ever to include features in their buildings that are good for the environment, good for their workers, and good for the surrounding community, said experts speaking at the ULI Fall Meeting.
Demand from growing cloud-computing providers has set the U.S. data center market on pace to break 2017’s record leasing activity, according to CBRE’s latest U.S. Data Center Trends Report. Northern Virginia and Phoenix are also seeing significant new construction to meet demand.
Prime logistics rents increased globally during the 12 months ended March 31, accelerating their growth in many markets due to strengthening economies around the world and greater demand for distribution of goods bought both online and in stores, according to a report from CBRE. Prime rrents increased by 3.2 percent across the globe in this year’s first quarter from a year earlier, exceeding the previous 12-month period’s 2.2 percent global increase.
E-commerce has brought industrial into the 21st century, said panelists at the ULI Spring Meeting, and technology has become more sophisticated in today’s industrial offerings. More important, industrial developers are constructing product that provides flexibility for tenant users, with more container parking storage and additional car parking if the tenant is an e-commerce user.
The growing popularity of online grocery shopping could result in demand for up to 35 million square feet (3.25 million sq m) of U.S. cold-storage space shifting from retail stores to warehouses and distribution centers within the next seven years, according to a report from CBRE.
Strong economic fundamentals, a favorable regulatory environment, and plenty of capital to deploy bode well for real estate investments, acquisitions, and development in 2018.
With e-commerce players remaking the retail sector, industrial real estate developers are hustling to provide the infrastructure needed to get packages to doorsteps in hours instead of days.
E-commerce’s explosive growth, an emphasis on speeding up supply chain fulfillment, and robust leasing demand among traditional warehouse users are dramatically influencing the industrial property market. Several quarters of healthy absorption and strong rent growth across most U.S. markets not only have turned the cavernous boxes into commercial real estate darlings, but also are driving a warehouse construction boom that is churning out larger buildings designed to enhance rapid delivery.
With consumers increasingly expecting to tap their smartphones and find a product on their doorstep within hours, e-commerce is creating an ever more intense demand for industrial real estate near population centers that can used for last-mile logistics, according to panelists at ULI’s 2017 Fall Meeting in Los Angeles.
Driven by an e-commerce boom, industrial real estate is in the midst of a golden age that shows no signs of waning, despite lingering concerns about the long-term health of traditional retailers, a group of industrial property managers said during a panel discussion at the 2017 Fall Meeting in Los Angeles.