Major rebound for industrial real estate may challenge logistics managers

By Patrick Burnson, Executive Editor
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.

 



About the Author

image
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 .(JavaScript must be enabled to view this email address).


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!

Recent Entries

Congested U.S. port terminals, harbor and over-the-road truck and driver shortages, slower trains and longer rail terminal dwell times due to increased domestic rates have not only disrupted service but also driven intermodal rates and cargo handling costs up sharply.

Southern California shippers are getting a break on container dwell expenses for the next ten days as the Port of Long Beach announced that it had added an extra three days to the time that overseas import containers can remain on the docks without charge.

The long-simmering court battle over whether FedEx Ground’s workers are independent contractors or employees appears headed to the appellate courts—and maybe the U.S. Supreme Court.

Carload volume headed up 4.3 percent to 298,376, and intermodal units, at 273,376 containers and trailers were up 4.8 percent annually.

In light on various service-related freight railroad service issues, the Department of Transportation’s Surface Transportation Board (STB) recently announced it is now requiring Class I railroads to publicly file weekly data reports on service performance. These weekly reports are slated to begin on October 22.

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers 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. Contact Patrick Burnson

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA