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
Private Fleet vs. Dedicated: Which one is right for you?
Having the right fleet for your business can give you an advantage over the competition and lower transportation costs.
Download Today!
From the April 2017 Issue
While adoption rates have remained relatively flat, yard management systems (YMS) are helping logistics operations turn that important space between the loading dock and the gate into a vital link in the supply chain.
Information Management: Wearables come in for a refit
2017 Air Cargo Roundtable: Positive Outlook Driven by New Demand
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Maximize Your LTL Driver Adherence with Real-time Feedback
This webinar shows how companies are using real-time performance data to optimize the scheduling of their city fleets, as well as the routing of their standard, accelerated and time-critical shipments.
Register Today!
EDITORS' PICKS
2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...
LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...

ASEAN Logistics: Building Collectively
While most of the world withdraws inward, Southeast Asia is practicing effective cooperation between...
2017 Rate Outlook: Will the pieces fall into place?
Trade and transport analysts see a turnaround in last year’s negative market outlook, but as...