Before the pandemic, industrial properties were a more of a snack than a main course among real estate’s primary food groups, but investors’ voracious appetite for the sector may result in it occupying a larger place in their portfolios.
A former Miami golf course turned into an industrial park. A Hollywood warehouse chopped up into six smaller offerings. And a bidding war over industrial space in East Hialeah.
Commercial brokers recount these tales in South Florida, a market with high demand for warehouses but not enough industrial-zoned land for new development. Industrial experts must turn to creative problem solving, as a reluctance to visit brick-and-mortar stores has led to a boom in online shopping and a burgeoning need to store appliances, food and other goods. Continue reading
In early July, real estate and investment giant JLL Inc. published a five-year outlook for U.S. e-commerce demand and logistics warehousing capacity.
The projections elicited “ooh-and-aah” types of responses, mainly because of the large numbers being bandied about. U.S. e-commerce sales would hit $1.5 trillion by 2025, while demand for logistics real estate would increase by an additional 1 billion square feet, JLL predicted.
Nearly three months later and with the benefit of hindsight, Rich Thompson, who headed the team that developed the report, realizes those projections were “very, very conservative.”