New numbers have confirmed that 2019 was a monumental year for industrial real estate, with total volume soaring to a record high of $102B, JLL reports.
That propulsion is expected to carry into 2020. JLL predicts industrial volumes in 2020 will continue to boom, with large-scale portfolio deal flows that are slated to finish during the first two quarters of 2020.
Ask any industrial broker about the most important feature to industrial tenants looking for a new facility and they’ll say “location.”
After that, it’s probably going to be clear height, with at least 32 feet, but preferably 36 or 40 feet, especially for large users (those taking 500 to 1,000 sq. ft. or more).
But according to Blaine Kelley, Atlanta-based senior vice president of the global supply chain practice with real estate services firm CBRE, tenants will trade off all other physical features for proximity to customers, labor and suppliers.
Despite leading economists’ forecast of a coming real estate slowdown, the demand for industrial space remains strong.
Competition is fierce as investors seek to capitalize on the growth of online retail and the resulting demand for “last mile” distribution centers, snapping up the dwindling supply of industrial properties, while others get creative with adaptive reuse projects.
However, industrial acquisitions, and distribution centers, present a specific set of challenges. Proper site selection and due diligence can go a long way towards protecting your investment.