Major rebound for industrial real estate may challenge logistics managers
January 21, 2014 - LM Editorial
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.
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