New project deliveries, continued cannabis legalization, a decline in manufacturing, faster e-commerce deliveries and the upcoming presidential election will all have an impact on the U.S. industrial sector in 2020, experts say. Here are eight predictions for the industrial sector in the new year:
The former headquarters of Shoma Development sold for $12.8 million.
Doral Commons, a four-story, 59,727-square-foot office building in Doral, sold for $214 per square foot, records show. A company managed by Coral Gables real estate investor William Holly bought the property at 8550 Northwest 33rd Street.
Malcolm Butters’ firm has been building industrial properties in South Florida for about 30 years. But the last three or four of those years have been nothing like what came before.
Companies such as Butters Construction have been forced to adapt to changes within an industrial market that has seen a massive influx of institutional capital from the likes of Blackstone and Prologis. Thanks to the rise of Amazon and e-commerce, these firms — especially Blackstone, which has north of $500 billion in assets under management — are paying top dollar for institutional properties.
That makes it difficult for smaller players like Butters to compete for deals to buy and develop new properties, especially in a place with little land left to build.