CBRE

Warehouses and fulfillment centers are increasingly automated, asset-intensive operations with multiple types of automation systems and robotics that need to work together to hit throughput goals. Consulting and assessments can identify likely solutions, but to get a solid prediction of what integrated systems can achieve, digital models and simulation are being widely used.

CBRE explained that following a record year, in the U.S. industrial real estate market in 2021, market conditions carried over into the first quarter, with strong demand for space remaining the common theme.

n its “North American Overview,” CBRE looked at the 23 “most dynamic” North American big box markets, finding that big box transactions represented 450 million SF across these markets (in the United States, Canada, and Mexico), marking a 29% annual gain over 2020’s 350 million SF.

In its “North American Overview,” CBRE looked at the 23 “most dynamic” North American big box markets, finding that big box transactions represented 450 million SF across these markets (in the United States, Canada, and Mexico), marking a 29% annual gain over 2020’s 350 million SF.

Report, “Industrial Occupiers Experiencing Sticker Shock at Lease Expiration,” pointed to how strong demand and new construction delays have reduced the industrial vacancy rate down to 3.6% in the third quarter, whereas annual rent growth increase a record-high 10.4%.

The report, entitled “Industrial Occupiers Experiencing Sticker Shock at Lease Expiration,” pointed to how robust demand and new construction delays have reduced the industrial vacancy rate down to 3.6% in the third quarter, whereas annual rent growth increase a record-high 10.4%. And it also highlighted how occupiers inking five-year leases back in 2016, with an average 3% rent increase, are now seeing net increases of 25%, while making decisions on new occupancy.

As the current package of economic and supply chain fundamentals—high levels of consumer demand, rapid order fulfillment, inventory replenishing, and clogged delivery networks, among others—remains intact, so does the current outlook for the industrial real estate market, according to data recently issued by Chicago-based industrial real estate firm CBRE.

Data recently issued by Los Angeles-based industrial real estate developer CBRE indicated that leasing volume for the United States industrial market is on track for a new annual record in 2021, with total activity through July, at 587 million square-feet (SF), a 52% annual gain.

In its “U.S. MarketFlash: Industrial Taking Rents Now Growing Faster Than Asking Rents, Reflecting Voracious Demand,” CBRE reported that average industrial asking rents headed up by a record 8.3% in the fourth quarter of 2020 and by 7.1% in the first quarter of 2021, with asking rents averaging 6.8% over the past five years.

Even though the most-dire days of the COVID-19 pandemic may be in the past, that, by no means, has pumped the brakes on the frenetic pace of e-commerce activity, driven by the steady drum beat of consumer demand. That was evident in the findings of a report recently issued by Los Angeles-based industrial real estate developer CBRE.

Even though the most-dire days of the COVID-19 pandemic may be in the past, that, by no means, has pumped the brakes on the frenetic pace of e-commerce activity, driven by the steady drum beat of consumer demand. That was evident in the findings of a report recently issued by Los Angeles-based industrial real estate developer CBRE.

In its “Q1 2021 U.S. Industrial & Logistics Figures,” CBRE explained that the United States industrial market “shows no signs of slowing down with record-high asking rents and in-process development activity, low vacancy levels, and 44 consecutive quarters of positive net absorption” (which CBRE views as a proxy for demand).

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For 2020, CBRE’s data indicated that industrial real estate transactions saw annual across the board gains, for all big box segments it tracks, including: 200,000-to-499,000 SF, from 150.6 to 158.8; 500,000 SF-to-749,999 SF, from 50.5 to 90.0; 750,000+SF, from 78.9 to 100.8, with the total number of transactions rising from 280.0 in 2019 to 349.3 in 2020.

Despite the scares COVID-19 has hurled on other industries, e-commerce has ensured high demand for warehousing, distribution and fulfillment.