Real Estate

White paper outlines impact of COVID-19 on the real estate industry and how digital twin technology will reshape future decisions for building owners.

Supply chain disruptions will drive companies to rethink manufacturing location strategies.

In an analysis of the largest 100 U.S. industrial & logistics leases by square footage for 2019, Los Angeles-based industrial real estate firm CBRE reported this week leases inked in the food & beverage industry, as well as in e-commerce and logistics led the pack, with some varying shifts.

Research recently issued in a report by San Francisco-based real estate investment trust company Prologis pointed to stable market conditions for the industrial real estate market, in the third quarter.

The report, entitled, “Logistics Activity Trending Toward Sustainable Growth, highlighted key findings from the Prologis IBI, which is a quarterly survey of customer sentiment. The IBI pointed to what Prologis called an environment of normalization away from the unsustainably high levels of activity recorded in 2018” (and came in at 60 for the third quarter; a reading of 50 or higher indicates growth is occurring) with:

As was the case in a previous report issued in June, a new report issued last week by Los Angeles-based industrial real estate firm CBRE continued to make the case for how an ongoing increase in online grocery sales has spurred further demand for United States-based cold storage warehousing space.

In its recent research paper, Prologis posits that when the supply chain extends from the factory to the doorstep, the way we talk about warehouses must change.

The need to meet same-day and next-day expectations has had a major impact on how warehouse and distribution center (DC) space is sought, secured and managed.

While there were fewer large leases in 2018, JLL explained that logistics-related sectors still accounted for around 50% of total share for the year and was at levels similar to 2016 and 2017. What’s more, it added that smaller facilities, in the 100,000 square-feet to 500,000 square-feet range, saw the strongest leasing activity, although tenants “are continuing to seek mega spaces across a broad spectrum of industries,” also noting that leasing activity was evenly spread between tier I and tier II logistics markets.

E-commerce and logistics companies claimed a larger share of the 100 largest industrial-and-logistics leases signed in 2018 than they did a year earlier, underscoring the growing influence of those companies on U.S. warehouse construction, according to a new report from CBRE.

The United States industrial real estate sector has been thriving in recent years, but report suggests 2019 could be a year in which the sector presses the pause button.

In its “U.S. Industrial Availability Index,” CBRE reported that the availability rate for U.S. industrial real estate fell ten basis points to 7.2% in the second quarter, which is its lowest level since 2000. CBRE said this represents the 32nd consecutive quarterly decline, with demand for industrial property continuing to outpace supply. What’s more, CBRE said this is the longest quarterly stretch of declining availability going back to 1988.

In its report, entitled “ Breaking Ground: Market Rents Justify New Warehouse Development,” CBRE said it analyzed the gap between pro forma rents in ten United States markets, which it defines as the rental rates that developers can reasonably expect to obtain on newly built warehouses, as well as breakeven rents, which it defines as the rents needed by developers to cover all development expenses. CBRE Real Estate Data 2018, New Warehouse Development in 2018 CBRE

Prologis, Inc. and DCT Industrial Trust Inc. today announced that the two companies have entered into a definitive merger agreement by which Prologis will acquire DCT for $8.4 billion in a stock-for-stock transaction, including the assumption of debt.

Although the United States warehousing market has tight vacancy rates, strong absorption rates and rent levels, study suggests it is also a victim of its own success amid the ongoing strength of e-commerce.