Tag Archive for: colliers report

Industrial Developer Buys Park ‘N Fly Lot Serving Fort Lauderdale Airport

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Bridge Industrial paid $20 million for the Park ‘N Fly lot serving Fort Lauderdale/Hollywood International Airport.

Atlanta-based PNF-FLL LLC, part of the company that operates Park ‘N Fly in multiple cities, sold the 22.4-acre site at 2200 N.E. Seventh Ave. in Dania Beach to Bridge Point Dania 161 LLC, an affiliate of Chicago-based Bridge Industrial. It’s located between the airport and Port Everglades.

The property last traded for $4.8 million in 2017.

On its website, Park ‘N Fly says the Dania Beach location will close after June 26. Two privately-owned off-site parking lots remain for the airport.

 

Source: SFBJ

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Commercial Real Estate Investment Up 45% Year-Over-Year

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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

Industrial Park Breaks Ground Near West Palm Beach With $53M Loan

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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

Labor Shortages, Land Availability Will Pressure Industrial In 2022

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Labor scarcity will be among the major headwinds driving industrial commercial real estate decisions in 2022 as record shortages challenge distribution channels and unemployment hits a near-historic low.

“With industrial related hiring already at all-time highs, the continued need for labor to service growing e-commerce demands, combined with an economy at nearly full employment, is exacerbating the labor shortage for distribution workers in many markets,” a new Colliers report notes, adding that the US unemployment rate is now near a 50 year low of 3.5%.

And while so far, the industrial sector has managed to post record growth, the labor shortages span “nearly all demographic groups and affect the entire American economy,” and continuing lows will slow the rate of economic growth and slow manufacturing output, Colliers predicts.

“While automation and advanced technologies are becoming more prevalent and affecting industrial employment, the future will still rely on highly skilled labor to operate complex systems and machinery, alongside robotics—labor that is increasingly more difficult to find,” the Colliers report notes.

In addition, scarce land availability will continue to impact the sector. Prologis reports that construction starts have risen to an all time high of 120 million square feet in the sector, but the firm notes that new supply is mainly concentrated in low-barrier secondary and tertiary markets and the outlying submarkets of inland markets.

While a record level of new supply is expected by the end of 2022—including massive build-to-suit projects for e-commerce suppliers and big-box chains—land near big population centers is increasingly scarce.

“Companies seem willing to pay a premium price for land with fierce competition for developable sites,” Colliers analysts note. “This competition is also driving up industrial rents, especially for logistics space near US seaports.”

Colliers also notes that facilities in excess of 2 million square feet are increasingly popular in dense markets as retailers attempt to establish footholds closer to consumers and shorten delivery times. The firm is tracking 12 such big-box multi-story industrial mega centers currently under construction, and notes that a vast majority are for Amazon.

 

Source: GlobeSt.