Industrial real estate, and more importantly, logistics real estate, serves as the conduit everyday consumers have become accustomed to receiving goods and services. Warehouses provide for product storage, truck terminals and distribution centers bring the product one step closer to the consumer while storage yards for trucks, trailers, and containers allow for the aggregation of equipment necessary to match the product to the consumer. The consumer, however, is the catalyst that dictates how each of these components thrives or declines, and ultimately interacts.
Formula 1 has turned the eyes of the world onto growing American cities. With eyes comes tourism, and with tourism, comes infrastructure, jobs, and growth. F1 has smartly partnered with American cities destined for growth, and tech companies have followed suit.
With more than 50,000 facilities and upwards of 2.3 billion square feet of self-storage in the United States, this segment of commercial real estate has steadily evolved over the last 60 years into big business. As the Covid pandemic enters its third year there has been an accelerated need for families to create space for both employees working from home, and/or a workplace for students while remote schooling.
Yes, you read it right. According to the 2021-2022 APPA National Pet Owners Survey, 70% of U.S. households own a pet, which equates to 90.5 million homes. This means that many residential …
It is evident that there is a direct correlation between inflation and the pricing of commercial real estate. Often, the “cure” to inflation is an increase in federal interest rates which have a direct impact on commercial real estate valuations. Economists have been expecting an increase in interest rates but were not expecting the federal government’s recent suggestion of three potential hikes in 2022. Additionally, there are rumored hikes in 2023, and more in 2024. The message is clear: due to the rapid inflationary pressures, driven largely by supply chain disruptions, the Federal Reserve has an aggressive plan to increase these rates.
The parallels between the last real estate run and this are hard to ignore; the record prices, the bidding wars, warehouses being leased before they’re built, the off-market transactions that …
The timing for this burgeoning industry is not ideal; already low vacancy rates in strategically desirable industrial areas coupled with the continued growth of e-commerce has put pressure on cannabis operators to pony up higher than market rents, driving up square footage costs seemingly by the week. The need to secure property in order to be licensed to operate has thus far not dissuaded those willing to take on substantial financial risk in order to get a piece of this multi-billion dollar (and growing) industry.
The most important lesson I have learned (and taught), is that you build relationships through integrity. This obviously works in all aspects of life, not just sales, but it is key to longevity in a sales environment and has been the backbone of my many sales endeavors throughout my career. If we (my customers and I) are going to mutually benefit from our working relationship, I have to outwork the competition and fully appreciate and empathize with what my customer wants and needs. Relationships, in life and in the office, are a two-way street.
The pandemic may be waning, as health metrics nationwide indicate a positive trajectory with our control over Covid-19, but the secondary effect on our economy might long outlast the virus. Now we must ask: Is this a temporary bubble caused by Covid-19, or a sign of more to come?
For the sake of this article and for the benefit of the uninitiated, I decided to provide you with a connotative definition before we move forward. I figured a few keystrokes into Google’s search bar would quickly help me lay my foundation and set the tone for this editorial and VOILA, some of that instant anger I mentioned in the beginning.
Despite the ongoing covid-19 pandemic, the logistics industry has performed remarkably well and facilitated the economy to stay afloat. As online sales continue to rise, it will also continue to drive the New Jersey metropolitan industrial market, it’s rental rates, footprint, etc. This will continue through 2021 and beyond.
The numbers tell the story – 111,000 restaurants alone have already closed in 2020, with 40 major retailers closing nearly 12,000 locations – small and large. No matter if you have a vacant 400 sq. ft. space or a 100,000 sq. ft. big box now vacant, property owners may want to consider some of the following depending on their vacancies.
Expect 2021 to perform across all sectors. We are finally getting optimistic results from the Covid vaccines and will be back to business as usual in no time.
Stay healthy and remain positive. Next year will be much different.
It should come as no surprise that in light of COVID-19 related closures, e-commerce has become an ever more integral part of our daily lives. Retailers of household goods, groceries, essential items, as well as non-essential, have in trial by fire fashion been required to provide appropriate infrastructure to ensure said goods are made available for consumers nationwide. This not only requires robust technological platforms, but sophisticated distribution networks including delivery services and warehousing in near immediate fashion.
We can spend all day long talking about cap rates, interest rates, and investment sales, but at the end of the day the trends begin with the renters and everything else follows suit. So what are our renters up to?