Source : The Wall Street Journal, June 29 2020
Retail, Hotel & Office real estate investors have unfortunately faced a reckoning as a result of the COVID-19 pandemic and its related shutdowns.
Conversely, Industrial real estate investors not only have successfully weathered this event, but have seen it fuel unprecedented demand for additional warehouse space.
Online e-commerce has significantly benefitted from the pandemic, as:
consumers look to avoid crowds due to the continuous increase of COVID-19 cases.
there are limited alternatives given the repeating shutdowns across the country.
NAIOP Research Foundation Press Releases
NAIOP Forecast: Industrial Space Demand
Industrial Demand Expected to Grow at Low End of Normal Range
February 27, 2012
Washington, D.C. — The NAIOP Research Foundation today released the Industrial Space Demand Forecast, the fifth forecast from a model that analyzes important economic factors and net absorption data to predict future demand for industrial real estate.
View Larger Graphic.
According to the data:
The current annualized rate of growth (4Q2011) came in at .87 percent, which is in line with the 1.0 percent...
Despite Recent Economic Deceleration, Investors Insist That U.S. Industrial Real Estate Positioned For Long-Term Growth.
By Randyl Drummer
March 21, 2012
While the heated apartment market continues to grab headlines in the ongoing CRE recovery, a number of investors are quietly turning their attention to the warehouse sector anticipating a strengthening economic rebound as the U.S. jobs picture continues to improve, leading to increased consumption and consumer spending, according to the latest PwC (PricewaterhouseCoopers) Real Estate Investor Survey.
"Warehouse demand is rapidly...
The Financial Times wrote about the astonishing amount of commercial debt coming due in 2012. In addition, all the five to ten year leases that were written at the height of the market (2007), expire over the next five years.
Facts to Consider:
US commercial property values have dropped 42% since 2007.
“A large majority of loans originated in 2007 are currently under water.”
Approximately $233B in CMBS loans were originated in 2007, compared with $32B in 2011.
There are $69.9B of CMBS loans set to mature in 2012.
"It is unclear where the capital will...
We read another fantastic industrial market report written by Rene Circ at Grubb & Ellis. The report explains how 2011 is shaping up to be the second best year in terms of supply/demand fundamentals on record in the United States.
Here are the key take-aways:
Industrial vacancy in the United States is close to 9.5%; a level not seen since 2007.
Rents on average are only 15-30% below their pre-recessionary peaks.
90 million square feet was positively absorbed this year.
Rents have stabilized as demand has outpaced new supply.
New completions will double in 2012...
The Premiere Gateway to a Growing Economy
We received this amazing video from Darla Longo at CBRE. Please click on the above image to view this fantastic video on the ports of Los Angeles and Long Beach.
Here are some key take-aways from the video:
The ports of Los Angeles and Long Beach are currently the largest and busiest seaport complex's in the United States.
50% of the goods coming through the ports of Los Angeles and Long Beach are consumed locally.
20 Million people live within a 50 mile radius of the ports.
The Port of Los Angeles is investing...
The ports of Los Angeles & Long Beach are dealing with heightened competition from the Panama Canal expansion (scheduled to be completed in 2014). Here are some facts on why the ports of Los Angeles and Long Beach will remain on top:
The ports of Los Angeles and Long Beach are currently operating at 50% capacity. Currently funded infrastructure enhancements will only increase this false assumption.
The port of Los Angeles has been the busiest US container port every year since 2000 (16th busiest in the world).
If you combined the ports of Los Angeles & Long...
As the Panama Canal expansion approaches, the ports of Los Angeles and Long Beach have secured funding to expand their capacity and upgrade their facilities.
Here are some notes from a recent logistics conference taken by WCL Consulting:
The ports of Los Angeles and Long Beach and the railroads of Union Pacific and BNSF will invest more than $7 billion in containerized cargo movement infrastructure.
The port of Los Angeles will invest over $3 billion on main channel deepening, terminal improvements, roadway connections and on-dock rail.
The port of Long Beach...
Doug O’Donnell attended the GRI Europe commercial real estate summit last month in Paris, France. This summit focused on European real estate investments and developments.
It's amazing how similar the situation in Europe is to that of the United States.
This is what the European commercial real estate experts had to say:
Fundamentals are becoming really important again: local presence and local knowledge are more than ever key factors to success.
Investors are looking for income producing properties, for quality assets. This leads them to core markets. Investors are looking for centers...