INDUSTRIAL
THE STRENGTH IN INDUSTRIAL RETURNS
Industrial commercial real estate continues to deliver excellent returns to investors and owner operators over the last few years and demand has only increased.
There are many facets to industrial sector, each with its’ own merits and characteristics. Some include manufacture, warehouse, logistics and distribution and the more complex with space exploration, energy production and refining.
MARKET CONDITIONS
More than 70% of U.S. industrial space was built before the 21st century, and a full third of the inventory is over 50 years old.
As the industrial industry continues to expand, the demand for large facilities with multiphase power distribution, infrastructure, access to railways, ports and interstate highways has increased tenfold.
It is estimated that for every $1B in e-commerce sales growth, approximately 1 million additional square feet of warehouse and distribution space will bee needed to keep the flow of goods moving.
STRATEGIC ADVANTAGES
Developers and owners of industrial real estate will experience key advantages as they negotiate new leases, lease renewals and property purchase or build-to-suit.
There is still considerable opportunity to acquire strategic industrial properties and sites that can be modified, repositioned and expanded to meet the aforementioned demand that will continue well into 2025 and beyond.
- Higher lease rates per square foot
- Strong stabilization with long terms leases (10+ years)
- Miniminal concessions and shorter marketing timelines
INVEST IN INDUSTRIAL CRE
Now is the time to consider industrial real estate. Whether warehouse and distribution, manufacturing, automotive, marina or any other specialized industrial niche, the demand is there and growing. Start now!