Industrial real estate near airports in the nation’s most densely populated areas could be attractive investments for 2023.
With transportation accounting for up to 70% of overall supply chain costs, businesses are increasingly locating their distribution centers closer to airports, according to CBRE Supply Chain Advisory.
A warehouse crush across the U.S. is squeezing out smaller companies as big retailers fill industrial storage sites with their growing stockpiles of inventory.
Logistics and real-estate specialists say many large retailers are demanding extra room to store excess inventories, driving up costs for smaller companies and in some cases driving them out of spaces.
It might not seem like a very attractive time to own real estate in the warehousing, distribution or manufacturing business.
Not only have the last two years turned real estate, across the board, into an incredibly uncertain investment, but the Federal Reserve is also in the middle of a series of interest rate hikes that will make real estate financing more expensive. And yet, it’s still true to say that owning a warehouse, distribution center or factory can be an excellent investment for a small or medium-sized business.