Major rebound for industrial real estate may challenge logistics managers

Prime space for warehousing and distribution center development may soon become scarcer, say analysts for the commercial real estate service firm, Cushman & Wakefield.

By ·

Prime space for warehousing and distribution center development may soon become scarcer, say analysts for the commercial real estate service firm, Cushman & Wakefield.

In its strongest performance since 2005, the U.S. industrial real estate market saw 328.5 million square feet in leasing activity and 117.2 million square feet of positive absorption in 2013.

Industrial leasing activity was up 6.2 percent year over year, and analysts say this reflects a more robust future for the nation’s leading container seaports.

“The Port of Houston is growing by leaps and bounds,” observes B. Kelley Parker, III, SIOR, Executive Vice President, Cushman & Wakefield of Texas, Inc. “Petrochemical exports are continuing to ramp up and inbound calls serving the mega-retailers are higher than ever.”

Robert L. Phillips, Jr., SIOR, First Vice President and William C. Throne, CCIM, SIOR, ALC, First Vice President
 Cushman & Wakefield | Thalhimer say that the Virginia Port Authority is poised for similar growth.

“The Richmond / Greensboro inland triangle develops industrial base and foreign trade zones,” says Phillips.  “New port tax incentives and grants will also drive more business at the Port of Virginia.”
Throne said the biggest challenge for the VPA is not having “big boxes” (distribution centers).

“However, we do have a good supply of entitled and ready-to-go sites for DC development,” he adds.

 


About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Latest Whitepaper
Logistics Network Analysis
Logistics network monitoring is an important step in understanding what actually occurs throughout your supply chain.
Download Today!
From the January 2018 Logistics Management Magazine Issue
Industry experts agree that costs across all sectors worldwide will continue to rise in 2018, and the most successful shippers will be those that are able to mitigate their impact on profitability. And, the right technology will play an increasingly vital role in driving efficiencies across the global logistics network.
The Future of Retail Distribution
Navigating the Reverse Supply Chain for Connected Devices
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
IAM, IoT and the Connected Supply Chain
There are three primary models of Identity and Access Management (IAM) technology that CTOs, CSOs, and Supply Chain executives are using to enhance their trading partner communities. While each leverages IAM and the IoT as core components only an “Outside-in” approach truly connects people, systems and things reliably and securely across the supply chain.
Register Today!
EDITORS' PICKS
State of Global Logistics: Delivering above and beyond
Industry experts agree that costs across all sectors worldwide will continue to rise in 2018, and...
2018 Rate Outlook: Economic Expansion, Pushing Rates Skyward
Trade and transport analysts see rates rising across all modes in accordance with continued...

Building the NextGen Supply Chain: Keeping pace with the digital economy
Peerless Media’s 2017 Virtual Summit shows how creating a data-rich ecosystem can eliminate...
2017 NASSTRAC Shipper of the Year: Mallinckrodt; Mastering and managing complexity
An inside look at how a large pharmaceutical firm transformed its vendor and supplier relationships...