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
The Essential Guide to High Value, Low TCO WMS on the Fast Track
A warehouse could become your weakest link if you can’t execute with speed and accuracy. Your bottom line will be negatively impacted, so will your customer’s experience, and they are only one click away from buying from your competitors!
Download Today!
From the November 2017 Logistics Management Magazine Issue
An inside look at how a large pharmaceutical firm transformed its vendor and supplier relationships into true, collaborative partnerships—and greatly strengthened its logistics and supply chain operations in the process.
34th Annual Quest for Quality Awards: 2017 Awards Dinner
Trucking Regulations: Washington U-Turns; States put hammer down
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Make Your Products Smarter in the Supply Chain with the IoT
This webinar explores how temperature-sensing smart labels and inexpensive NFC tags are being used to extend product safety and efficiency beyond the shipping dock while also building a communication bridge to your customers.
Register Today!
EDITORS' PICKS
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...
2017 Alliance Awards: Recognizing outstanding supply chain partnerships
In an era where effective supply chain collaboration is both highly valued and elusive, Logistics...

26th Annual Study of Logistics and Transportation Trends: Transportation at Digital Speed
While a majority of companies strongly agree that transportation is a strategically important...
34th Annual Quest for Quality Awards: Winners Revealed
Which carriers, third-party logistics providers, and North American ports have crossed the service...