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It’s rare for a property type to extend a growth cycle beyond a decade. But industrial real estate’s dominance only seems to grow — attracting newcomers while big players scrap for the materials and land they need to keep their projects moving and potential clients happy.

While longtime powerhouses like Prologis and Panattoni plow forward with their own mammoth projects — and Amazon admits that it has too much industrial space on its hands — other companies are making their debut, hoping to seize on some of the continued demand and expanding yields.

Although the industrial market has been on an expansion trajectory for years, there seems to be plenty of room for newcomers.

“It’s no secret why industrial is doing so well, with the e-commerce boom really accelerated by what’s happened in the last couple of years with the pandemic,” said Scannell Properties Director of Development in Southern California Jay Tanjuan. “People were almost forced to order online, and many realized how convenient it was. E-commerce has huge demand, and so there’s the need for warehouse.”

There seems to be widespread consensus that the industrial heyday is far from over.

“We’re in an ongoing industrial real estate boom. We had been in an above-average growth phase pre-pandemic and obviously, the pandemic accelerated that. Post-pandemic, it continues to grow,” said RBC Capital Markets Director Michael Carroll, an analyst who covers Prologis and other REITs. “I don’t think we’re at the end of it, it’s still ongoing.”

Carroll pointed to the nationwide vacancy rate for industrial space — 3.3% in the first quarter, according to Cushman & Wakefield, with lease rates up 15.2% on average compared to a year ago — and a rapid pace of leasing that means new spec development is snapped up as soon as it’s finished, if not before.

Among the industrial newcomers is Peterson Cos., the Virginia-based developer of residential communities, huge retail districts and data centers. Peterson took the plunge into industrial development last year, and has two projects totaling 334 acres underway in the Washington, D.C., area, with another 915 acres in the planning stages, according to Peterson President of Development Taylor Chess.

“We started looking at industrial eight to 10 years ago, seeing that as the wave of the future,” Chess told Bisnow. “We felt as though distribution was going to become a much more integral part of the retail market. But we kept getting beaten out by people buying land for data centers, so we pivoted to data centers.”

Now, as the company’s initial prediction proved out, hastened along by the pandemic, Peterson doubled down on its efforts, launching an industrial arm in earnest to capitalize on the staggering demand.

 

“There’s no question that internet sales and distribution were going to become a key industry eight years ago, and that’s why we started teeing it up. We had no idea it was going to accelerate as fast as it did,” Chess said.

Peterson’s not alone. Nationwide companies that have operated successfully for decades in other property types are also diversifying their efforts by turning to industrial.

South Carolina-based Greystar, for example, is a bastion of multifamily development and management, with thousands of units in major markets across the country. But Greystar in March paid $43.7M for 154 acres near the Phoenix airport, setting up the company’s first large-scale industrial project. Greystar got a leg up on its foray into a new product type by purchasing a parcel with plans that were already approved by the local planning authority. Greystar will work with a development team assembled by the former owner of the land, a Phoenix-based company called Unbound Development, according to a press release announcing the deal.

Similarly, private equity giant KKR & Co. earlier this month announced a dramatic push into industrial development, with plans to build 1.8M SF worth of mid-sized warehouses in last-mile distribution locations in Atlanta, Dallas, Denver, and Orlando, Florida.

And Tishman Speyer, known for its office buildings, hired Andy Burke, formerly of industrial developer Terreno Realty Corp., as its managing director to oversee industrial acquisitions and development. Tishman Speyer in December 2021 announced that it acquired two middle-mile distribution centers in Colorado and Pennsylvania.

Each of these new entrants to the industrial market appears to have a focus on last-mile distribution, which is basically the white whale of industrial development right now, according to Carroll, thanks to its demand paired with a lack of available land.

“Companies are trying to build industrial warehouses close to consumers because it reduces shipping costs and labor costs,” Carroll said. “It’s important to be as close to consumers as you can, but most cities don’t want industrial warehouses because they want the highest value for their tax base and the least traffic. It’s hard to build industrial warehouses where they actually need to be.”

The lack of available land is something about which Chess at Peterson knows a lot.

“This has never been an industrial market, it’s always been a government market,” Chess said of his company’s target market around the nation’s capital. “Zoning is a challenge, as well as finding large tracts of land. Many other areas have large industrial sections of their metro area that have already been designated or are being redeveloped from manufacturing. D.C. doesn’t have that, so finding the right location has been a challenge.”

Land availability is just one of the challenges for any company trying to develop industrial properties right now. Shipping delays and turbulence in markets and foreign countries continue driving up the cost of materials, and labor is difficult to find in most markets. This doesn’t just make buildings cost more, it impacts a key factor for potential industrial tenants: speed to market.

“The biggest issue with leasing is that when tenants enter the market, they want it now. That is the biggest issue. The tenants are there, but we have to finish building to be able to put them in. That’s why going spec is so important,” Chess said.

With so much competition for land, materials and labor, the addition of new players to the marketplace could be considered a negative for existing companies that are already battling to get what they need.  But Tanjuan says that for those who are committed to the product type, there’s a way forward.

“There are opportunities out there for everybody,” Tanjuan said. “It’s competitive, and finding space is extremely difficult, but there are opportunities out there. If you’re out there and being proactive, you’re going to run into something.”

 

Source: Bisnow

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After a banner year of CRE investment in 2021, 2022 is off to a solid start.

Reports from both Colliers and CBRE for the first three months of this year found that investment in CRE is up and, by some accounts, setting records.

U.S. transaction volume hit $161B, a first-quarter all-time high, Colliers found. CBRE clocked total transaction volume at $150.4B, which was a 45% increase over the same time the year before.

Volume was up for all asset classes, but unsurprisingly, multifamily took the top spot, capturing $63B, according to Colliers. That amounts to a 56% increase year-over-year and sets a new record for multifamily, according to Colliers.

By CBRE’s count, multifamily also took the lead, but CBRE found it garnered $57B in investment volume, a 42% increase over the previous year’s first quarter. It is common for brokerages to have different numbers based on their research metrics, including size of deals tracked.

Greater New York and greater LA were in the No. 1 and No. 2 spots for transactions, respectively, CBRE found. New York saw $63B worth of deals, while greater LA trailed closely behind with $62B worth of transactions.

Earlier this year, CBRE forecast that even after 2021’s record highs, CRE investment would continue to grow in 2022.

Though interest rates are moving upward and inflation is soaring, these factors haven’t had an impact on CRE yet, Colliers said, though it also noted those would likely be reflected in data later in the year because there is a lag between interest rates being hiked and deal flow effects.

CRE is often called an inflation hedge, and the interest in CRE this year could be seen as confirmation that investors view property as an investment that could withstand the uptick, but now some investors have begun to make moves that indicate they aren’t sure how much longer that will hold true.

 

Source: Bisnow

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The first quarter of 2022 may have technically been a winter-to-spring transition, but CRE metro markets were particularly hot in the Sun Belt and West, with Florida walking away with the top five out of 16 markets.

That’s according to the National Association of Realtors’ Commercial Real Estate Metro Market Conditions Index. Only one market—Boston—was outside of those regions.

The organization says that the index, which shows relative performance, “is calculated using 25 variables pertaining to the metro area’s economic conditions (job growth, unemployment rate, wage growth), demographic conditions (net domestic migration, population growth), commercial market conditions for multifamily, office, industrial, and retail property sectors (vacancy rate, absorption, rent growth, cap rate, professional/business services, and retail trade job growth) and employment conditions in the hotel/lodging industry (job growth, share of leisure and hospitality workers to total employment)”

An index number for an area above 50 means that market conditions were stronger than a national average while one below 50 means weaker. The index combines upwards of 25 variables, depending on what information is available.

Some of the market variables include changes in non-farm employment and unemployment rate, GDP growth, population growth, changes in apartment rents; rent to income share, new office space leasing, net absorption of office and industrial; and changes in jobs in specific sectors. A score of 80 or above means an area is outperforming on at least 20 out of the 25 areas.

So, for example, Orlando-Kissimmee-Sanford, Florida, the top-rated metro, outperformed the US overall on 21 out of the 25 variables and landed with an 84 index. Wages were up 9%; 10,000 people migrated there from other states; office vacancies were 8% versus 12.2% nationally; multifamily asking rents were up 25% compared to the national 11.4%; industrial vacancy rate was 3.6%  versus 4.1% national; and retail vacancy was 3.8%, where the nation’s average was 4.5%.

That was the only index score of 80 or above. The other top four locations, all in Florida, were Miami-Miami Beach-Kendall (76); West Palm Beach-Boca Raton-Delray Beach (76); Fort Lauderdale-Pompano Beach-Deerfield Beach (72); and Fort Myers (72).

Out of the top 16 markets, the only other state with two entries was Georgia: Savannah (72) and Atlanta-Sandy Springs-Roswell (68). At the bottom of the top 16 was Provo-Orem, with an index of 68.

 

Source: GlobeSt.

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Four months after acquiring a massive development site at Palm Beach Park of Commerce, Woodmont Industrial Partners paid the same seller $21 million for a recently completed warehouse nearby.

An affiliate managed by Eric Witmondt, CEO of the Fairfield, New Jersey-based commercial real estate firm, bought the 212,000-square-foot facility at 15501 Park of Commerce Boulevard in Jupiter. The seller is an affiliate of Atlanta-based TPA Group, records show.

Woodmont Industrial paid $99 a square foot for the warehouse, which is pre-leased to two tenants, a press release states. The buyer obtained a $7.5 million mortgage from Valley National Bank, records show.

TPA recently completed the warehouse after breaking ground last year, the release states. The building has a 36-foot ceiling height clearance, parking for cars and trailers, and a concrete truck court. It was the last Palm Beach Park of Commerce property owned by TPA.

The master-planned industrial park spans 1,300 acres with heavy and light industrial developable land, as well as commercial building sites, according to TPA’s website.

In January, TPA Group sold 116.6 acres at Palm Beach Park of Commerce to Woodmont Industrial for $40.4 million, records show. In a partnership with PCCP and Butters Construction & Development, Woodmont Industrial plans to build eight warehouses, the release states. The first two buildings, spanning a combined 354,390 square feet, are expected to be completed in July 2023.

In a statement, Woodmont Vice President Anthony Amadeo said the firm is “extremely bullish” on Palm Beach County, where the company is building 2 million square feet of industrial space in the next 24 months.

“Woodmont will continue seeking deals to expand its footprint in South Florida’s industrial market,” Amadeo said.

Palm Beach County has a significant need for new industrial space. In the most recent quarter, tenant demand was so high that leasing volume slowed substantiallydue to a lack of available spaces and new projects, according to a JLL report.

Net absorption shot up to 135,862 square feet in the most recent quarter, compared to 52,247 square feet during the same period of last year. Yet, only 321,000 square feet of new industrial space is currently under construction in Palm Beach County, the report shows. The county had a first quarter vacancy rate of 4.5 percent, and asking rents for industrial tenants averaged $9.47 a square foot.

 

Source: The Real Deal

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Easton Group has proposed a warehouse in Riviera Beach to aid in distribution of goods from nearby Port of Palm Beach.

Miami-based Easton Group owns the 8.9-acre site on the Dr. Martin Luther King Jr. Blvd. on west side of railroad tracks. It acquired the vacant property for $6.5 million in December 2021 through SFG ISF Riviera MLK LLC. The developer has a pending application with the city to combine three parcels into a single tract of land and to build a 34,500-square-foot warehouse/office facility.

The Riviera Beach Planning and Zoning Board approved the application 5-1 on April 28. The project will need City Council approval at a later date. The building would have 31,500 square feet of warehousing and 3,000 square feet of office, along with 60 trailer loading docks lining the building. There would be 49 trailer staging parking spaces on the site.

 

Source: SFBJ

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Commercial property purchases have shown few signs of slowing down after a banner year, according to a recent report from JLL Capital Market’s Miami office.

South Florida commercial real estate transactions rose to $25 billion in 2021. That’s a 183% increase from the $8.8 billion in transactions across Miami-Dade, Broward, and Palm Beach counties recorded the year before.

The momentum has spilled over into this year. In the first three months of 2022, JLL recorded $6 billion in commercial real estate transactions completed across the tri-county area industry-wide, up 51% from the first quarter of 2021. (Data from the first quarter of 2022 is preliminary and subject to change, a JLL spokeswoman told the Business Journal.) This sharp rise in deal activity could be found across the industrial, multifamily, office and retail sectors.

Danny Finkle, senior managing director of JLL’s Miami office, credits the new wave of transactions to Florida’s “business-friendly environment and excellent quality of life.”

“Institutional investors have recognized this cultural shift and are tailoring their investment criteria to target markets like South Florida,” Finkle stated in a recent JLL release.

A significant portion of the property sales centered on multifamily housing. In 2021, there were $14.69 billion in real estate transactions involving residential rentals, an increase of 277% from the previous year. In the first quarter 2022, there have been $2.75 billion in trades involving South Florida apartment buildings, a 76% hike compared to the year-ago quarter.

In the office sector, there were $5.38 billion in trades in 2021, a 235% jump from the year prior. In the first quarter of this year, there have been $1.05 billion in office sales, a year-over-year increase of 10%.

Meanwhile, retail property transactions rose 136% in 2021 year over year to $3.88 billion in South Florida. Then another $1.28 billion of retail transactions took place in the first quarter of this year, a 186% hike compared to the year-ago quarter.

As for industrial, sales volume increased 63% from the previous year to $2.3 billion in 2021. In the first quarter of 2022, a total of $908.29 million in industrial transactions took place, a 76% leap from the year-ago quarter.

Companies and well-off individuals have been migrating to South Florida in greater numbers due to the region’s popularity, weather, and lack of income taxes, brokers and developers have told the Business Journal. It’sa trend that’s expected continue through the rest of 2022, making South Florida a prime spot for investment. Multifamily properties likely saw the biggest increases because rents are surging at a faster rate in the Miami area than almost any other metro in the U.S.

The migration has tipped e-commerce into overdrive, creating a shortage of warehouse and distribution space as companies seek to fulfill the orders of a humming economy amidst a continuing supply-chain crunch.

JLL stated that its Miami office handled 121% more investment sales, debt, and equity transactions in 2021 than the year before. To accommodate that growth, JLL promoted Cody Brais, Kenny Cutler and Max La Cava to director status.

Headquartered in Chicago, JLL has 3,000 capital market specialistsacross 50 nations. The data in JLL’s report was supplied from Real Capital Analytics, a New York-based real estate analysis company that has recorded $40 trillion in commercial real estate transactions since its founding in 2000.

 

Source: SFBJ

 

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A recently converted warehouse in Fort Lauderdale’s Progresso Village is now 100% leased with retail and office tenants that will altogether employ about 100 people.

Called Fabrick, the former industrial space at 801, 807, 815, and 819 N.E 2nd Ave. has 24,000 square feet of office and retail. The developer, BH3 Management, moved its headquarters from Aventura to the project’s office component in April. It’s larger than BH3’s previous office in Aventura, which was only 5,000 square feet.

The other seven businesses leasing space in Fabrick will employ an estimated 75 people. The final employee count for all tenants will not be known until they have completed their build outs and are open for business, Freedman stated in an e-mail to the Business Journal.

A subsidiary of BH3, BH3 DJ Flagler LLC, bought the warehouse in November 2017 for $2.8 million, according to online records from the Broward County Property Appraiser office. Another subsidiary, BH3 DJ Sub LLC, purchased the warehouse from BH3 DJ Flagler LLC for $1.64 million in May 2020.

After receiving $350,000 in incentives from the Fort Lauderdale Community Redevelopment Agency in December 2020, BH3 launched an adaptive reuse project of the warehouse building.

Besides the incentives, the project was financed through a $5.1 million loan from New York-based Maxim Capital Group.

 

Source: SFBJ

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Palm Beach County officials could approve a land use change that would permit more than 2,100 apartments in the Agricultural Reserve to address the lack of workforce housing in the area.

The County Planning Commission approved on April 8 the future land use change to facilitate “essential housing” in the Agricultural Reserve west of Delray Beach and Boynton Beach. The application was initiated by county staff, not a particular landowner. However, the application would apply to five specific parcels covering a combined 269 acres in the area.

The Agricultural Reserve is one of the largest markets for single-family home development in all of South Florida. The development rules encourage low density and a certain portion of land must be set aside for agriculture and open space for every acre developed. Using density of 2.5 units per acre, nearly 11,000 homes have been developed there, according to the county memo.

Given the low-density development pattern in the Agricultural Reserve, there are almost no housing opportunities for most people employed in the workforce, the county memo stated. The median sales price of a home on less than one acre in the area was $880,000, according to the Palm Beach County Property Appraiser. Less than 3% of the homes sold for under $500,000.

“Creating a higher density category with both a significant workforce housing requirement and a preserve requirement will help to address this imbalance while continuing to support the preservation objective,” the county memo stated.

The staff recommendation for the essential housing land use category is eight units per acre and a requirement to preserve 60% of the site and develop 40%. In addition, 25% of the units must be workforce housing.

That land use category would be restricted to locations fronting major roads, like Atlantic Avenue and Boynton Beach Boulevard, in close proximity to Florida’s Turnpike. Under the essential housing proposal, these five sites could be developed with a combined 2,152 units. However, that number could increase to 5,379 units if the owners of these properties are able to preserve land in other locations within the Agricultural Reserve, thus being able to build apartments on the entirety of their land within the essential housing district.

Developers such as GL Homes frequently buy land in the Agricultural Reserve for preservation in order to build home communities in other locations in the area. One of those five locations already has a pending development application.

The essential housing land use plan would need approval from the County Commission at a later date.

 

Source: SFBJ

 

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An affiliate of Vecellio Group broke ground on an industrial park near West Palm Beach after obtaining a $52.65 million construction loan.

United Bank of Charleston, West Virginia provided the mortgage to 101 Sansburys Way LLC, an affiliate of Vecellio Group, a construction materials firm and contractor. It covers the 32.8-acre site at the same address, which is on the north side of Southern Boulevard, just west of Florida’s Turnpike.

Fort Lauderdale-based Hernandez Construction recently filed notice with Palm Beach County that it started work on the project. The site was approved for three warehouses for a combined 435,800 square feet. The first phase is a 165,000-square-foot warehouse with 32-foot clear height.

The developer is working with Fort Lauderdale-based Helms Development on the project.

According to the fourth quarter report from Colliers, the Palm Beach County industrial market had a 3.2% vacancy rate, down from 3.6% a year earlier, amid 949,211 square feet of positive absorption over the year. There was 548,824 square feet under construction, so there was certainly room for more buildings based on the pace of absorption.

 

Source: SFBJ

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The residential real estate market has received quite a bit of attention over the last two years, and for good reason.

The housing market has become so tight that inventory is extremely hard to come by in nearly every market, and prices are now higher than ever for homes. The properties that are listed for sale typically get snatched up in record time—and often sell for higher than asking price—which has made it tough for most buyers to compete.

Case in point: A moderately priced home recently went for sale in Raleigh, North Carolina, and it was absolutely inundated by potential buyers searching for affordable properties. That mad dash by buyers was enough to make national headlines, but any buyer who’s looked for property in the last two years was almost certainly not surprised by the overwhelming interest. That’s just part of what buyers face when looking for property in a red-hot housing market.

But the property buying frenzy that has occurred recently has hardly been limited to the residential housing market. Commercial real estate transactions have also exploded—with a surprising surge in transactions occurring over the last year. Throughout 2021, investors big and small snatched up everything from apartment buildings, warehouses, and distribution centers to other types of commercial properties, such as hotels. As of the second quarter of 2021, multifamily property sales were up 26% year over year and nonresidential properties were up 16% compared to the year prior.

There were also increases in sales rates across all commercial property types. The rampant demand for commercial properties also led to $193 billion in commercial real estate transactions occurring in the third quarter of 2021—and a record $809 billion in commercial property sales for all of 2021.

So what exactly drove the surge in commercial real estate transactions throughout 2021—and why? EquityMultiple compiled a list of six important trends in the commercial real estate markets during 2021, covering topics from the rise of individual investors to the impact of the federal reserve’s pandemic policies. Here’s what you should know.

The lower bond prices caused key bond market indices to post their first losses since 2013, and led investors to look for other ways to put their money to work, which included commercial real estate securities, real estate investment trusts, and other commercial property investments. While potentially risky, commercial real estate transactions can be lucrative for investors, with annual yields averaging between 6% and 12%, with potential for significant appreciation depending on market conditions and other factors. That means investing in commercial real estate has the potential for a significantly higher return on investment when compared to the average return on bonds.

These loans were then converted into commercial mortgage securities, which are offered to individual investors, investment firms, and other financial management companies as shares. By doing this, swaths of investors were able to buy into commercial real estate transactions without having to fund the full purchase of the physical properties or land. Apartment buildings, life science labs, and industrial properties—which were expected to yield higher returns than other commercial properties, such as shopping malls or retail centers—were especially sought after. These types of commercial properties yielded more than $193 billion in sales during the third quarter of 2021.

In turn, the demand for distribution centers surged, and vacancy rates at these properties reached historic lows. That led investors to capitalize on the trend by buying distribution centers and then rake in the profits from the high lease prices. Rampant supply chain shortages also made it difficult to develop more of these types of properties, which only added more fuel to the fire. Distribution centers and warehouses were suddenly selling for a premium, and investors were willing to pay the price for these properties, which kept transaction rates high.

By purchasing apartment buildings, commercial property investors are able to capitalize on the opportunity to profit from the increased rent prices that occurred. In 2021, rent increased by an average of 11%—or three times the normal rate—and it has only continued to increase from there. As of February 2022, the average national rent price for one-bedroom units was up 22.6% year over year, and two-bedroom rent was up an average of 20.4%.

As such, it can be tough for small investors to qualify, which has led them to set their sights on other options such as real estate crowdfunding, which opens access to commercial real estate transitions and other private fund structures. Another option includes open-ended funds, known as non-traded real estate investment trusts. Non-traded REITs accounted for about 42% of the alternative investment market in 2021, with about $36.5 billion total in fundraising that year alone. Part of the draw is that, unlike most traditional REITs, investors can buy into non-traded REITs for as little as $2,500—and there’s an opportunity for big returns in exchange. Most non-traded REITs have been paying dividends above 5%, which is competitive—and often beats—other types of fixed-income investments.

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Retailers, third-party logistics firms and e-commerce groups alike are eating up the most big-box warehouse space in today’s red-hot market.

Retailers and wholesalers accounted for the most industrial deals at 200,000 square feet or larger last year, or 35.8% of all leasing activity, a considerable increase from 24.7% in 2020, according to CBRE Group Inc. E-commerce fell from the No. 1 spot in 2020 to third last year, accounting for 10.7% of all deals, while 3PLs grew from 25.8% to 32.2%, ranking No. 2 among large industrial leases in both 2020 and 2021.

Propelled by a surge in online ordering, and changes to consumer preferences in part because of the pandemic, retailers and 3PLs have ramped up their distribution networks considerably in recent years. That demand is expected to be sustained this year, and could become even more frenzied with the recent surge in gas prices.

The cost of regular gas has risen nationally 20.9% in the past month, from an about $3.50 a gallon to $4.32 on Tuesday, according to figures from Heathrow, Florida-based American Automobile Association Inc.

James Breeze, senior director and global head of industrial and logistics research at CBRE, said transportation accounts for at least 50% of a typical industrial occupier’s costs, even before the recent hike in inflation and oil prices. But, largely because of sanctions imposed on Russia from the war in Ukraine, oil prices have risen dramatically, although Brent crude futures — a key benchmark for oil prices — just began to decline. National gas prices were down 0.2% between Monday, March 14 and Tuesday, March 15, according to AAA.

“Any run-up in transportation costs will likely outpace warehouse rent growth, even while that’s growing at a rapid clip, which could result in even more demand for warehouse space,” Breeze said.

Carolyn Salzer, senior research manager of industrial logistics at Cushman & Wakefield PLC said higher gas prices could have a ripple effect on the industrial market, depending on the user and their supply-chain model. Both Salzer and Breeze said real estate costs for warehouse users have typically been about 5% of a company’s costs but, more recently, that’s gotten closer to 10%, Salzer said.

“If you bite the bullet and pay the more expensive rent to be close to the population center, and be more competitive with the labor pool and provide easier options for commuters to get to where you’re located, it can cut your transportation costs on gas and mileage in general,” Salzer continued.

Cushman & Wakefield is forecasting rent growth for warehouse and logistics space will rise by more than 15% in the next two years. Class A and new construction rents are anticipated to grow at an even higher rate. Those rental surges are creating a squeeze for some users, with tenants looking at lease terms sooner than what’s typical, or negotiating an early renewal or a smaller extension to resize a facility or consider real estate farther out, Salzer said.

But, Breeze said, for most industrial users today, higher rental rates generally aren’t causing companies to hit the brakes on expansion because they need the space to store inventory and lower transportation costs.

Salzer said she anticipates e-commerce users will occupy about the same share of the market it has since the pandemic, or 40%. That’s compared to 28.2% of all industrial absorption from 2016 through 2019, according to Cushman. Many retailers are opting to work with 3PLs to bolster their supply chains, which will continue to comprise demand in 2022 and beyond.

“CBRE so far this year has seen ramped-up leasing activity for groups that deal in building and construction materials, as well as medical supplies, which typically represent a lower share of the overall warehouse market, Breeze said. “That’ll likely mean a more diversified occupier base this year.”

 

Source: SFBJ

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The owner of the Festival Flea Market in Pompano Beach wants to demolish the building and sell the property to an industrial developer.

The city’s Development Review Committee on March 16 will consider land use amendment and rezoning applications for the 23.8-acre site at 2900 W. Sample Road. It’s owned by Festival Real Estate LLC, an affiliate of North Miami-based IMC Equity Group, but the application says it’s under contract to Atlanta-based industrial giant IDI Logistics.

The property currently has a 382,000-square-foot commercial flea market, which was built in 1986 and is used by multiple small vendors. It’s near a Florida’s Turnpike exit. The flea market would be replaced with about 773,000 square feet of industrial space. The developer has yet to submit a detailed site plan.

IMC Equity Group acquired the property for $56 million in 2018 and initially spoke about revitalizing the flea market. In November 2021, it sold a parking lot south of the flea market to an industrial developer after it was approved for warehouses.

 

Source: SFBJ