Industrial Real Estate Forecast
Industrial continues to be the darling of the commercial real estate industry, but what impact could tariffs, new supply, and our economic cycle have on the sector?
K.C. Conway, Director of Research and Corporate Engagement at the Alabama Center for Real Estate provided his insights on what lies ahead for industrial real estate markets on a recent Atlanta radio show.
Here are a few nuggets from the broadcast:
- 1. We are in the early innings of the industrial CRE cycle.
- 2. Nationwide stats fresh from Colliers show record low vacancy (4.9%) and record high asking rents >$6.00/ SF for the first time.
- 3. Reshoring companies broke a record in 2018 with 1,389 companies.
- 4. The new Big-Box in retail is an industrial warehouse.
- 5. Don't fret the 300msf of new construction. We need it - and over half the purported 6, "Spec" space is actually committed to a tenant but under a confidentiality agreement until completed or occupied.
- 7. Tariffs won't beat up Industrial. Companies need to warehouse more to avoid Supply-chain disruptions until they figure out the new Supply-chain channels that will flow more through places like Vietnam, South Korea, Malaysia, etc than China. Read the recent Corp Earnings to see how companies are managing.
Listen to the entire show here.
Clayton McKinnon, Hoar Construction