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St. Louis, MO | 2016 Top #CRE Markets to Watch: Industrial

SVNIC’s 2016 Market Outlook Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2016. Today we are delving into the 2016 Top Industrial Markets to Watch. Not the largest or the most actively contested markets, the 2016 Industrial Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Industrial Market to Watch: St. Louis, MO

St. Louis - Top Industrial Markets to WatchThe St. Louis economy has experienced strong growth since the recession and now features a 5.2% unemployment rate as of January ‘16 with modest job growth of 1.2% annualized. The diverse economic base includes manufacturing of food and agricultural products that are relatively immune to cyclical forces and thus stabilize the St. Louis industrial space market. Still, the key industrial sector of Manufacturing is losing jobs at a 1.3% annualized pace while Trade, Transportation, and Utilities grows at a nearly flat rate of 0.3% annualized. Overall, the stable nature of the industries operating in St. Louis, many with corporate HQs, and its strong river, rail, and air linkages should allow its industrial market to remain healthy in 2016 and beyond.

Stay Updated…

Over the next few weeks, the SVN Blog will be featuring posts that will focus on each of the top markets to watch for industrial, multifamily, office, and retail properties. SVN Advisors from selected top markets have provided their industry expertise regarding what to look out for in their specific market in the coming months. Don’t miss out on these important insights – subscribe to the SVN Blog on the right side of the blog homepage.

To read more on other top industrial markets, download the full version of the 2016 Industrial Market Outlook report here.

2016 Industrial Market Outlook

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Seattle, WA | 2016 Top #CRE Markets to Watch: Industrial

SVNIC’s 2016 Market Outlook Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2016. Today we are delving into the 2016 Top Industrial Markets to Watch. Not the largest or the most actively contested markets, the 2016 Industrial Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Industrial Market to Watch: Seattle, WA

Seattle - Top Industrial Market to WatchSeattle has experienced significant job growth since the recession and continues to add jobs at an annualized rate of 3.0%, keeping unemployment stable at 5.6% as of January ‘16, according to the BLS. As Seattle hosts major West Coast ports, a major airport, and excellent rail linkages, trade and distribution activities dominate the industrial real estate market. Employment in the Trade, Transportation, and Utilities sector is growing at an annualized rate of 4.2%, making up for losses in the Manufacturing sector that is contracting at an annualized rate of –0.9%. Overall, the Puget Sound ports and infrastructure should drive robust demand for industrial real estate as more and more ship traffic is routed up north from congested Long Beach, California.

Advisor Insights: SVN | Raven

SVN’s Seattle-based Advisors at SVN | Raven have some industrial market highlights to share. Here’s what to look out for in the Seattle industrial market in 2016:

  • Tear down old outdated commercial space for new modern distribution centers
  • HUB/community space on outdated office/industrial flex
  • Owner-user acquisition buildings for assemblage for larger projects

Stay Updated…

Over the next few weeks, the SVN Blog will be featuring posts that will focus on each of the top markets to watch for industrial, multifamily, office, and retail properties. SVN Advisors from selected top markets have provided their industry expertise regarding what to look out for in their specific market in the coming months. Don’t miss out on these important insights – subscribe to the SVN Blog on the right side of the blog homepage.

To read more on other top industrial markets, download the full version of the 2016 Industrial Market Outlook report here.

2016 Industrial Market Outlook

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Pittsburgh, PA | 2016 Top #CRE Markets to Watch: Industrial

SVNIC’s 2016 Market Outlook Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2016. Today we are delving into the 2016 Top Industrial Markets to Watch. Not the largest or the most actively contested markets, the 2016 Industrial Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Industrial Market to Watch: Pittsburgh, PA

Pittsburgh - top industrial markets to watchThe Pittsburgh economy has more or less stabilized after the recession and massive losses to its manufacturing and steel production base. Today the unemployment rate sits at 5.5% as of January ‘16 but job creation is effectively flat at a literal 0.0% rate of growth. The industrial real estate market of Pittsburgh is highly influenced by oil and gas production as well as the steel industry, both of which have potential to see long-term losses. Key industrial sectors are losing jobs, including Manufacturing and Trade, Transportation, and Utilities which are declining at annualized rates of –3.4% and –0.4%, respectively. Thankfully, Pittsburgh is transforming itself into a more research and high-tech focused economy which should grow overall jobs and ultimately benefit the industrial sector. Further, this trend should cause more vacant industrial buildings to be repurposed and redeveloped, helping industrial landlords overall.

Advisor Insights: SVN | Three Rivers Commercial Advisors

SVN’s Pittsburgh-based Advisors at SVN | Three Rivers Commercial Advisors have some industrial market highlights to share. Here’s what to look out for in the Pittsburgh industrial market in 2016:

  • Vacancy rate is 6.2% and expected to stay the same or slight decrease
  • Rental Rate average is $5.74 / SF which is trending upwards and expected to stay the same or increase
  • Positive absorption expected for both flex and warehouse space

Stay Updated…

Over the next few weeks, the SVN Blog will be featuring posts that will focus on each of the top markets to watch for industrial, multifamily, office, and retail properties. SVN Advisors from selected top markets have provided their industry expertise regarding what to look out for in their specific market in the coming months. Don’t miss out on these important insights – subscribe to the SVN Blog on the right side of the blog homepage.

To read more on other top industrial markets, download the full version of the 2016 Industrial Market Outlook report here.

2016 Industrial Market Outlook

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Memphis, TN | 2016 Top #CRE Markets to Watch: Industrial

SVNIC’s 2016 Market Outlook Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2016. Today we are delving into the 2016 Top Industrial Markets to Watch. Not the largest or the most actively contested markets, the 2016 Industrial Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Industrial Market to Watch: Memphis, TN

Memphis - top industrial market to watchThe Memphis economy has been slowly growing and recovering since the recession and stands today with 5.6% unemployment as of January ‘16, with modest annualized job gains of 1.7%, according to the Bureau of Labor Statistics. Its strongest industrial segment and in fact strongest employment segment overall is Trade, Transport, and Utilities, which is expanding at an annualized rate of 4.2%. Manufacturing is also adding jobs at 0.7%. Given that Memphis is located in the approximate population weighted center of the country, it is an ideal location to serve for e-commerce and other direct to consumer distribution businesses. Thus, the Memphis industrial market may be one of the largest benefactors of the rise of online shopping and will likely continue to expand in 2016 and beyond.

Stay Updated…

Over the next few weeks, the SVN Blog will be featuring posts that will focus on each of the top markets to watch for industrial, multifamily, office, and retail properties. SVN Advisors from selected top markets have provided their industry expertise regarding what to look out for in their specific market in the coming months. Don’t miss out on these important insights – subscribe to the SVN Blog on the right side of the blog homepage.

To read more on other top industrial markets, download the full version of the 2016 Industrial Market Outlook report here.

2016 Industrial Market Outlook

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Los Angeles, CA | 2016 Top #CRE Markets to Watch: Industrial

SVNIC’s 2016 Market Outlook Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2016. Today we are delving into the 2016 Top Industrial Markets to Watch. Not the largest or the most actively contested markets, the 2016 Industrial Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Industrial Market to Watch: Los Angeles, CA

Los Angeles - top industrial market to watchLos Angeles is one of the largest, most dynamic cities in the United States and its economy has fully recovered, with a normalized level of unemployment at 5.5% as of January ‘16 and annualized total employment growth of 2.3%, according to the Bureau of Labor Statistics. Its industrial space market is one of the best performing in the nation due to the growth in container and freight traffic from the port as well as inbound air cargo from Asia. The Trade, Transportation, and Utilities sector is growing at an annualized rate of 1.7%, meaning that further growth and expansion is possible. Of course, the reliance on trade could cause a contraction in the industrial sector with global pressures, but this is unlikely as much of the trade and distribution are import goods that will benefit from a strong US dollar.

Stay Updated…

Over the next few weeks, the SVN Blog will be featuring posts that will focus on each of the top markets to watch for industrial, multifamily, office, and retail properties. SVN Advisors from selected top markets have provided their industry expertise regarding what to look out for in their specific market in the coming months. Don’t miss out on these important insights – subscribe to the SVN Blog on the right side of the blog homepage.

To read more on other top industrial markets, download the full version of the 2016 Industrial Market Outlook report here.

2016 Industrial Market Outlook

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Knoxville, TN | 2016 Top #CRE Markets to Watch: Industrial

SVNIC’s 2016 Market Outlook Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2016. Today we are delving into the 2016 Top Industrial Markets to Watch. Not the largest or the most actively contested markets, the 2016 Industrial Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Industrial Market to Watch: Knoxville, TN

Knoxville - top industrial market to watchThe Knoxville economy is extremely steady given its diverse economic base and thus experienced relatively low effects of the recession. The city now has a 4.5% unemployment rate as of January ‘16, with overall employment growing at an annualized rate of 2.5%, according to the Bureau of Labor Statistics. The industrial sectors of Knoxville are all showing marked strength, including Manufacturing and Trade, Transport, and Utilities growing at annualized rates of 4.5% and 4.1%, respectively. Additionally, the Mining, Logging, and Construction sector is growing at a rapid 10.2% annualized rate, further fueling the market. The mix of defense, research, and industrial manufacturers gives Knoxville strong power to grow its industrial real estate in 2016 and beyond.

Stay Updated…

Over the next few weeks, the SVN Blog will be featuring posts that will focus on each of the top markets to watch for industrial, multifamily, office, and retail properties. SVN Advisors from selected top markets have provided their industry expertise regarding what to look out for in their specific market in the coming months. Don’t miss out on these important insights – subscribe to the SVN Blog on the right side of the blog homepage.

To read more on other top industrial markets, download the full version of the 2016 Industrial Market Outlook report here.

2016 Industrial Market Outlook

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Greenville-Spartanburg, SC | 2016 Top #CRE Markets to Watch: Industrial

SVNIC’s 2016 Market Outlook Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2016. Today we are delving into the 2016 Top Industrial Markets to Watch. Not the largest or the most actively contested markets, the 2016 Industrial Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Industrial Market to Watch: Greenville-Spartanburg

Greenville-Spartanburg - top industrial market to watchThe Greenville-Spartanburg region has experienced significant gains in its labor force, and overall employment is growing at a 2.6% annualized rate with unemployment holding steady at 4.9%, according to the Bureau of Labor Statistics. Key industrial sectors of Trade, Transport, and Utilities and Manufacturing are growing at annualized rates of 2.6% and 1.3%, respectively, setting up the industrial market for gains in 2016 and beyond. As South Carolina is well located for distribution in the Southeast, connected to ports, and unfriendly to labor unions, it is likely to continue to see expansion in its industrial sectors including those of Greenville-Spartanburg. Low cost of living and operating costs also serve to boost overall business development.

Stay Updated…

Over the next few weeks, the SVN Blog will be featuring posts that will focus on each of the top markets to watch for industrial, multifamily, office, and retail properties. SVN Advisors from selected top markets have provided their industry expertise regarding what to look out for in their specific market in the coming months. Don’t miss out on these important insights – subscribe to the SVN Blog on the right side of the blog homepage.

To read more on other top industrial markets, download the full version of the 2016 Industrial Market Outlook report here.

2016 Industrial Market Outlook

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Dallas, TX | 2016 Top #CRE Markets to Watch: Industrial

SVNIC’s 2016 Market Outlook Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2016. Today we are delving into the 2016 Top Industrial Markets to Watch. Not the largest or the most actively contested markets, the 2016 Industrial Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Industrial Market to Watch: Dallas, TX

Dallas - top industrial market to watchThe Dallas economy remains one of the strongest of the major metros in the nation with unemployment at 3.8% as of January ‘16 and steadily rising total employment at a 3.4% annualized rate, according to the Bureau of Labor Statistics. The fastest growing sector of employment in Dallas is an industrial space using Trade, Transport, and Utilities, which is growing at an annualized rate of 5.2%. This is the sector, where most of the 2016 and beyond gains in the industrial space market will be generated. Dallas has unparalleled airport and rail access making it an ideal business and distribution hub. In fact, the area surrounding the DFW airport is best poised to expand. Manufacturing is the weakest sector declining at a –1.6% annualized rate. This sector touches oil and gas production and exploration, and is thus most at risk for declines in 2016 and beyond.

Stay Updated…

Over the next few weeks, the SVN Blog will be featuring posts that will focus on each of the top markets to watch for industrial, multifamily, office, and retail properties. SVN Advisors from selected top markets have provided their industry expertise regarding what to look out for in their specific market in the coming months. Don’t miss out on these important insights – subscribe to the SVN Blog on the right side of the blog homepage.

To read more on other top industrial markets, download the full version of the 2016 Industrial Market Outlook report here.

2016 Industrial Market Outlook

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Albuquerque, NM | 2016 Top #CRE Markets to Watch: Industrial

SVNIC’s 2016 Market Outlook Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2016. Today we are delving into the 2016 Top Industrial Markets to Watch. Not the largest or the most actively contested markets, the 2016 Industrial Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Industrial Market to Watch: Albuquerque, NM

Albuquerque top industrial marketAlbuquerque’s overall economy has remained fairly stable with a slowly falling, above national average level of unemployment at 5.8% as of January ‘16, according to the Bureau of Labor Statistics. Key industrial sectors have been losing employees and thus may threaten to soften the industrial space market; these include Manufacturing and Trade, Transportation, and Utilities which are contracting at –2.5% and –0.9% annualized rates, respectively. As much of the economic and industrial base of Albuquerque centers on high tech, research, defense, and other manufacturing, the industrial sector should remain very stable on a relative basis. Given low levels of new supply, growth in fundamentals could also occur in 2016 as the market is not over-supplied.

Stay Updated…

Over the next few weeks, the SVN Blog will be featuring posts that will focus on each of the top markets to watch for industrial, multifamily, office, and retail properties. SVN Advisors from selected top markets have provided their industry expertise regarding what to look out for in their specific market in the coming months. Don’t miss out on these important insights – subscribe to the SVN Blog on the right side of the blog homepage.

To read more on other top industrial markets, download the full version of the 2016 Industrial Market Outlook report here.

2016 Industrial Market Outlook

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Seattle, WA | 2015 Top #CRE Markets to Watch: Industrial

Sperry Van Ness International Corporation’s (SVNIC) 2015 Market Update Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2015. Today we are delving into the 2015 Top Industrial Markets to Watch. Not the largest or the most actively contested markets, the 2015 Industrial Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Industrial Market to Watch: Seattle, WA

Seattle: 2015 Industrial Markets to WatchSeattle’s industrial vacancy rate fell to 4% in the first quarter of 2015, down more than 100 basis points from a year earlier. High occupancy rates, impressive rent growth trends, and investors’ favorable assessment of the general market opportunity are prompting significant new development. More than 4 million square feet was under construction in late 2014, representing more than 3% of the market’s current industrial inventory.

With one of the fastest growing urban cores and most highly educated populations, Seattle’s economic and investment outlook position the Puget Sound region as a contender for gateway market status. In the Urban Land Institute’s latest Emerging Trends Report, Seattle ranks in the top ten markets nationally for its attractiveness as a target for investment across all property types. It ranked fourth nationally for development and redevelopment opportunities, behind only Houston, Dallas, and San Jose and ahead of all of the coastal gateways. For industrial investment specifically, Seattle ranked second in the nation, 88% of investors assigned Seattle’s industrial sector a buy or hold rating while only 12% reported a sell recommendation.

To read more on Seattle and other top industrial markets, download the full version of the 2015 Industrial Market Update report here.

industrial_thumbnail

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisors with more than 180 locations in 200 markets.

Portland, OR | 2015 Top #CRE Markets to Watch: Industrial

Sperry Van Ness International Corporation’s (SVNIC) 2015 Market Update Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2015. Today we are delving into the 2015 Top Industrial Markets to Watch. Not the largest or the most actively contested markets, the 2015 Industrial Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Industrial Market to Watch: Portland, OR

Portland: 2015 Industrial Markets to WatchPortland’s industrial vacancy rate dipped below 6% in the first quarter of 2015, adding the region to the ranks of the tightest industrial markets in the nation. Rent gains across industrial subtypes have accelerated in kind and, in 2014 and the first quarter of 2015, were on par with higher profile markets including San Jose. The strong local economy and online commerce trends are behind the healthy absorption of warehouse, distribution, and fulfillment spaces. But the concentration of tech activity and the market’s relatively low costs have also made Portland an attractive option for data centers. As compared to markets with comparable occupancy and rent growth rates, investors will find relatively good values in Portland. The average cap rate for sales and refinancing activity was 6.2% in 2014, nearly 100 basis points higher than in the dominant Northern California and Southern California markets and 70 basis points lower than Seattle. Diverging from the positive outlook for the area’s overall industrial market, the Port of Portland faces serious challenges. In spite of the longshoremen’s new contract, the departure of Hanjin and Hapag-Lloyd — which together account for nearly all of the port’s container traffic — will be difficult to overcome.

To read more on Portland and other top industrial markets, download the full version of the 2015 Industrial Market Update report here.

industrial_thumbnail

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisors with more than 180 locations in 200 markets.

Northern New Jersey | 2015 Top #CRE Markets to Watch: Industrial

Sperry Van Ness International Corporation’s (SVNIC) 2015 Market Update Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2015. Today we are delving into the 2015 Top Industrial Markets to Watch. Not the largest or the most actively contested markets, the 2015 Industrial Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Industrial Market to Watch: Northern New Jersey

Northern New Jersey: 2015 Industrial Markets to WatchFollowing more than a year of sluggish rent gains and relatively weak absorption, Northern New Jersey’s industrial market appears poised for growth. That sentiment may be shared across the wide range investors who ranked North Jersey fifth in the nation for industrial investment prospects. In the Urban Land Institute’s 2015 Emerging Trends Report, nearly two-thirds of respondents assigned a buy rating to the North Jersey industrial market. Only 7% gave a sell rating.

Major projects underway will bolster the competitiveness of the area’s industrial assets, including interchange and bridge infrastructure projects. The Port Authority of New York and New Jersey is investing in massive infrastructure improvements to the Port Newark Container Terminal. Those efforts will increase capacity and processing time per truck. Additionally, the Bayonne Bridge is being raised more than 60 feet at a cost of more than $1.3 billion in order to accommodate the post-Panamax ships that are expected to pass through the Panama Canal once widening is complete in 2016.

Among new sources of demand for space, tighter markets in New York City are generating spillovers into the Garden State. As gentrification marches through the Outer Boroughs, some of the city’s industrial tenants may look to the Meadowlands and other Northern New Jersey markets for cheaper alternatives and larger floor plates. With little in the way of new construction, the market’s tighter occupancy outlook should support more consistent rent and property income growth.

To read more on Northern New Jersey and other top industrial markets, download the full version of the 2015 Industrial Market Update report here.

industrial_thumbnail

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisors with more than 180 locations in 200 markets.

Minneapolis – St. Paul, MN | 2015 Top #CRE Markets to Watch: Industrial

Sperry Van Ness International Corporation’s (SVNIC) 2015 Market Update Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2015. Today we are delving into the 2015 Top Industrial Markets to Watch. Not the largest or the most actively contested markets, the 2015 Industrial Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Industrial Market to Watch: Minneapolis – St. Paul, MN

Minneapolis: 2015 Industrial Markets to WatchMinneapolis in 2015 is a clear buy in the investor calculus. According to the Urban Land Institute’s 2015 Emerging Trends Report surveys, the Twin Cities ranks fourth in the nation for the strength of the industrial investment opportunity, behind the Southern California agglomeration of the Inland Empire, Los Angeles, and Orange County. Two-thirds of survey respondents ranked Minneapolis-St. Paul’s industrial sector as a buy this year. Another 28% rated the market a hold. Less than 6% gave the market a sell rating; only Orange County and Raleigh-Durham had a more favorable assessment. Investors can still find less relative bargains in this less aggressively priced market. Cap rates in the Minneapolis region averaging 6.8% during 2014, 100 to 150 basis points higher than other top-ranked markets.

The Twin Cities has long served as a vital economic hub for the Upper Midwest region. Distribution centers, logistics facilities, and data centers — some with elite Tier III certification, including the new CenturyLink MP2 facility — are popping up throughout the metropolitan area to match strengthening absorption. More than a million square feet of new space entered the inventory in early 2015, including nearly 500,000 square feet for furniture retailer Room & Board. The vacancy rate declined to below 7% in any case. More than 4 million square feet of projects are currently in the pipeline, representing roughly 3% of the existing inventory. While the bulk of that space is speculative, the market’s strong underlying growth drivers are expected to support healthy absorption.

To read more on Minneapolis – St. Paul and other top industrial markets, download the full version of the 2015 Industrial Market Update report here.

industrial_thumbnail

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisors with more than 180 locations in 200 markets.

Chicago, IL | 2015 Top #CRE Markets to Watch: Industrial

Sperry Van Ness International Corporation’s (SVNIC) 2015 Market Update Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2015. Today we are delving into the 2015 Top Industrial Markets to Watch. Not the largest or the most actively contested markets, the 2015 Industrial Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Industrial Market to Watch: Chicago, IL

Chicago: 2015 Industrial Markets to WatchThe nation’s largest industrial market in terms of inventory, Chicago is also one its strongest. Vacancy rates have been declining consistently for over three years, reaching 6.5% in the first quarter of 2015 according to Chandan Economics’ tracking of mortgage-financed properties. Lower vacancy rates and one of the strongest rates of asking rent growth in the country have prompted an increase in development activity. Investors should not be too concerned about the nearly 10 million square feet of space under construction as of early 2015, almost half of which is spec. While that level of activity could overwhelm a smaller market, it represents less than 1% of Chicago’s massive inventory of industrial space.

The drivers of demand for space in the Windy City and its surroundings are as varied as the region’s economy. Warehouses, logistics, distribution, and fulfillment centers, as well as flex space and data centers are all benefiting from growth in demand. Investors may be frustrated by the degree of competition for high quality assets. Prices reflect the market’s prospects, with cap rates falling to below 6% in 2014 and early 2015.

To read more on Chicago and other top industrial markets, download the full version of the 2015 Industrial Market Update report here.

industrial_thumbnail

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisors with more than 180 locations in 200 markets.

#CRE Trends and Market Update 2015 | Industrial

Industrial Market Outlook

Industrial Sector’s Time to Shine

The prominence of industrial properties as targets for investment is on the rise. A laggard in the early stages of the commercial real estate recovery, investors now rank the industrial sector ahead of all other property types for its investment and development prospects.¹ Lenders are seeing eye-to-eye with their borrowers, anticipating that industrial property mortgage volume will grow more consistently than other property types over the next year.²

2015 Industrial Markets to WatchThe drivers of the industrial sector’s headline performance numbers are varied. Breaking a pattern of decline that began in the 1980s, increasing manufacturing activity and employment since the end of the recession have supported the absorption of a wide range of heavy and light manufacturing spaces. That trend coincides with continued growth in shipping volumes, both on a large scale at the nation’s deep-water ports and along the “last mile” where fulfillment centers are allowing online retailers to shorten delivery times in major metropolitan areas.

Across all industrial subtypes, the national vacancy rate fell below 8% in the first quarter of 2015, its lowest level since before the recession, according to Chandan Economics’ tracking of mortgage-financed properties. The pace of asking rent growth has improved in kind, rising to 2.8% in 2014 from 2.0% a year before. Rent growth is projected to surpass 3.0% in 2015 with significantly stronger results in the tightest segments of the market, including fulfillment centers and the most active ports. The situation is different for functionally obsolete warehouses and assets further afield from distribution channels. In those cases, industrial properties will see further declines in performance as leases roll, diluting cash flow.

Even in the strongest segments of the industrial sector, investors should watch supply trends in their markets closely. With the support of banks and other lenders, development activity is picking up across the full range of single-tenant build-to-suit properties, partially pre-leased multi-tenant properties, and even speculative development. Construction is concentrated in Southern California, the Mid-Atlantic, in the Dallas-Fort Worth metroplex, and Atlanta. In spite of strong demand-side drivers for space, investors in these markets may find that an observable surge in speculative development risks undercutting the performance of less competitive assets.


¹PwC and Urban Land Institute, Emerging Trends in Real Estate 2015

²RELA-Chandan Survey of Commercial Real Estate Lender Sentiment Fall 2014

2015 Industrial Market Update: Manufacturing Employment

Industrial Market Statistics in 2015

Industrial development activity increased sharply in 2014 and showed no sign of losing momentum in the first quarter of 2015. Measured in terms of dollar spending, construction activity jumped 50% between 2013 and 2014 and, on its current trajectory, will soon surpass the previous cyclical high set in 2007. Development is highly concentrated in a small number of metropolitan areas, including Los Angeles and the Inland Empire in California, Philadelphia and New Jersey in the Mid-Atlantic, and the Dallas-Fort Worth metroplex and Atlanta in the South and Southeast. Investors in other markets should still keep a careful eye on construction activity. With the shortest development timeframes of the major property types, the balance of supply and demand can shift quickly in the industrial space market.

2015 Industrial Market Update: Industrial Construction Spending2015 Industrial Market Update: Change in Industrial Spending

Asking rents for industrial space nationally increased by 2.6% in 2014, surpassing the previous cycle’s high of 2.5%, recorded in 2007. Across virtually all of the major investment markets, lease rollovers in the first quarter of 2015 were accretive to property cash flow. The strongest rent gains are in close-in fulfillment centers, which have experienced a surge in tenant demand as online retailers have pushed towards the “last mile” with consumers. Lifted by the rapid expansion of cloud storage needs, data centers also registered healthy rent gains.

Differences in rent trends were pronounced across markets. In San Francisco and San Jose, demand from tech firms and others pushed asking rent increases into the double-digits. Denver and Chicago followed Northern California. In the case of the former, the legalization of marijuana production has been a primary driver of new demand for space, pushing vacancy rates to their lowest levels on record.

2015 Industrial Market Update: Industrial Asking Rents2015 Industrial Market Update 2015: Change in Industrial Rents

In spite of improving fundamentals, the national average cap rate for industrial property sales and refinancing declined only slightly in 2014, to 6.2%. Significantly below its long-term average, the cap rate still affords a relatively wide spread over benchmark treasuries. Along with the most important industrial hubs, including the Southern California markets and Chicago, cap rates edged closer to 5% in San Francisco and San José, Seattle, and Miami. Aside from Chicago’s healthy valuations, the highest cap rate markets in 2014 were concentrated in the Midwest, including Cincinnati, Cleveland, Detroit, and Indianapolis. With relatively slow rent growth, weaker assets in these markets are also amongst the most exposed to downward pressure on values once interest rates begin a sustained rise.

2015 Industrial Market Update 2015: Industrial Cap Rates2015 Industrial Market Update:  Cap Rate Spread

Market Cap Rates

Value-weighted national average industrial cap rates fell to 6.2% in 2014, marginally lower than a year before. Market average cap rates ranged from just over 5% in the Southern California agglomeration of Los Angeles, Long Beach, and Orange County to above 7% in some Midwestern and Southern markets. Detroit was the only major market to register an average cap rate above 8% in 2014.

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason — we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisors, with more than 190 locations in 500+ markets.

To download the full 2015 Industrial Market Outlook report, click here.

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Indianapolis, IN | 2015 Top #CRE Markets to Watch: Industrial

Sperry Van Ness International Corporation’s (SVNIC) 2015 Market Update Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2015. Today we are delving into the 2015 Top Industrial Markets to Watch. Not the largest or the most actively contested markets, the 2015 Industrial Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Industrial Market to Watch: Indianapolis, IN

Indianapolis: 2015 Industrial Markets to WatchThe industrial fundamentals for the Indianapolis market remain relatively strong despite the delivery of more than 5.5 million square feet in 2014. Those new properties helped drive Indianapolis to the top-tier of markets for rent growth. Bucking the national trend, however, the vacancy rate for the metro area jumped at the same time from a historically low 7% in the first quarter of 2014 to nearly 8% in the first quarter of 2015. Amongst the additions to the industrial landscape in 2014, online computer parts retailer NewEgg opened up a state-of-the-art fulfillment center that will service the Midwest region, processing up to an estimated 12,000 orders per day. Other large deliveries included a 1.1 million square foot distribution facility for Johnson & Johnson and a 545,000 square foot regional distribution facility for Omaha, Nebraska-based retailer Gordmans. While there are millions of square feet still under development, most of that product is build-to-suit, including a 1.2 million square foot distribution facility for Walmart and a 600,000 distribution facility for mattress manufacturer Tempur Sealy.

Occupancy rates are expected to recover some of their lost ground in late 2015 and 2016. Until those expectations are reflected in prices, investors in search of good values will find cap rates in the range of 7%, higher than in other markets with similar rent growth records in 2014.

To read more on Indianapolis and other top industrial markets, download the full version of the 2015 Industrial Market Update report here.

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It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisors with more than 180 locations in 200 markets.

Denver, CO | 2015 Top #CRE Markets to Watch: Industrial

Sperry Van Ness International Corporation’s (SVNIC) 2015 Market Update Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2015. Today we are delving into the 2015 Top Industrial Markets to Watch. Not the largest or the most actively contested markets, the 2015 Industrial Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Industrial Market to Watch: Denver, CO

Denver: 2015 Industrial Markets to WatchThe Denver industrial market is reaping the dividends of the state’s move to legalize marijuana production. Demand for space in Denver itself, where production is permitted, pushed the vacancy rate below 3% in late 2014, the lowest level on record. The surge in demand amounts to a positive shock of between 3.5 and 5 million square feet, according to different sources. Developers are responding slowly, with roughly 1 million square feet of space currently under development. That imbalance augurs continued strength in rent gains; the sector’s greater liquidity, borne out by higher transaction volumes, suggests resilience in asset values once interest rates begin their upward hike.

In spite of its visibility, marijuana production represents a tiny fraction of industrial space leases in the Denver area. The strength of the local economy — the unemployment rate is below 4% as of early 2015 — is supporting demand across light manufacturing, distribution and logistics, and warehousing. Investors will find the market’s rosy outlook commands a high price. Cap rates in Denver declined to an average of 5.7% in 2014 across property sales and refinancing activity, lower than some coastal gateways including Washington, DC and Boston.

To read more on Denver and other top industrial markets, download the full version of the 2015 Industrial Market Update report here.

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It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisors with more than 180 locations in 200 markets.

Seattle & Tacoma, WA | 2014 Top CRE Markets to Watch : Industrial

Sperry Van Ness International Corporation’s (SVNIC) 2014 Top Markets to Watch Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2014. Today we are delving into the 2014 Top Industrial Markets to Watch.  Not the largest, or the most actively contested markets, the 2014 Industrial Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

TOP INDUSTRIAL MARKET TO WATCH : Seattle and Tacoma, Washington

seattle-416065_1280Seattle’s port handled 3 million TEUs of containerized cargo in 2013, placing it among the nation’s top five ports for finished goods. The port is PPMX-ready, meaning it has the required channel depth and cranes to handle the largest, fully loaded cargo ships that will be in common use following the reopening of the expanded Panama Canal in 2015. The nearby Port of Tacoma, too, has been PPMX-ready since 2011, after having dredged its channels to the necessary depth and adding massive gantry cranes. Tacoma’s containerized cargo volume has surged to more than 1 million TEUs per year as a result, and helped to fuel additional demand for industrial space. Falling market-wide vacancy is nearing 5 percent and demand for space is generating build-to-suits as well as accelerating absorption, which spiked to 1.5 million square feet in the fourth quarter of 2013 alone. The market added more than 1 million square feet of new space in 2013 and has more than twice that amount under construction. A strong employment base, rooted in energy and technology and enjoying a boost in aerospace manufacturing, has helped Seattle to more than recover the number of jobs it lost in the Great Recession. Projected household growth near 5 percent bodes well for the market’s distribution centers. While the newly refitted Port of Tacoma is expanding its market share of cargo traffic, Seattle is also feeling increased competitive pressure from Prince Rupert, a Canadian seaport in British Columbia that is also PPMX-ready following recent upgrades to its facilities.

To read more on Seattle and Tacoma, and other top industrial markets, download the full version of the Top Industrial Markets to Watch report below. 

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisers with more than 180 locations in 200 markets.

Download the Top Trends and Markets to Watch Reports

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Industrial Trends and Markets to Watch

Retail Trends and Markets to Watch

Commerical Real Estate Trends and Markets to Watch

Apartment Trends and Markets to Watch

Office Trends and Markets to Watch

 

 

 

Los Angeles & Long Beach, CA | 2014 Top CRE Markets to Watch : Industrial

Sperry Van Ness International Corporation’s (SVNIC) 2014 Top Markets to Watch Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2014. Today we are delving into the 2014 Top Industrial Markets to Watch.  Not the largest, or the most actively contested markets, the 2014 Industrial Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

TOP INDUSTRIAL MARKET TO WATCH : Los Angeles and Long Beach, California

long-beach-198911_1280Moves by two shipping companies from the Port of Los Angeles to the Port of Long Beach in late 2012 contributed to an 11.3 percent year-over-year increase in cargo traffic at Long Beach in 2013, while LA’s volume for the year declined by only 2.6 percent. The twin ports have invested billions of dollars in capital improvements to avoid losing shipping volume to East Coast ports following the opening of the expanded Panama Canal in late 2015. Nearer on the horizon, the West Coast longshoremen’s labor agreement will expire in June 2014, bringing elevated risk levels for port-related industrial users until the sides forge a new agreement. Nearly four years of positive absorption have filled portions of the Los Angeles Basin industrial market, with a vacancy rate of less than 3 percent in the San Gabriel Valley, Central L.A. and the South Bay submarkets. Other submarkets offer only slightly more vacancy, with Orange County topping the list at just over 4 percent. Average rents have been on the rise since the first quarter of 2011 and now top 50 cents per square foot in most submarkets, with landlords in the South Bay and Orange County quoting rent of 60 cents or more per square foot. More than half of the developed space in Los Angeles County and Orange County is 20 years old or older, creating some redevelopment opportunities, while a dearth of large, Class A distribution buildings is accelerating rent growth for that segment. Development activity is brisk with more than 20 million square feet under construction, but is unlikely to fully satisfy the growing demand for industrial space due to the limited availability of buildable sites and a faster pace of absorption.

To read more on Los Angeles and Long Beach, and other top industrial markets, download the full version of the Top Industrial Markets to Watch report below. 

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisers with more than 180 locations in 200 markets.

Download the Top Trends and Markets to Watch Reports

Chandan-Industrial-Cover

Industrial Trends and Markets to Watch

Retail Trends and Markets to Watch

Commerical Real Estate Trends and Markets to Watch

Apartment Trends and Markets to Watch

Office Trends and Markets to Watch

 

 

 

Philadelphia, PA | 2014 Top CRE Markets to Watch : Industrial

Sperry Van Ness International Corporation’s (SVNIC) 2014 Top Markets to Watch Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2014. Today we are delving into the 2014 Top Industrial Markets to Watch.  Not the largest, or the most actively contested markets, the 2014 Industrial Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

TOP INDUSTRIAL MARKET TO WATCH : Philadelphia, Pennsylvania

philadelphia-493829_1280The Philadelphia industrial market has been overshadowed by its faster-growing peers but to its advantage, the market’s fundamentals remain largely unchanged and stable in 2014. Philadelphia County’s more than 360,000 square feet of absorption in 2013, in the absence of major construction, helped to push down the industrial vacancy rate to near 8 percent, on par with the Philadelphia suburbs and lower than the vacancy rates in most of the region’s other markets. Companies seeking space for their own use have taken out more buildings here in the past few years than those leasing space. The population count has decreased by more than 14,000 since 2008 but is back on a moderate growth track. Investors that see Philly’s lack of growth as stagnation may be willing to sell at attractive prices, and those sellers will find potential buyers attracted to the market’s incrementally improving industrial fundamentals.

To read more on Philadelphia, and other top industrial markets, download the full version of the Top Industrial Markets to Watch report below. 

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisers with more than 180 locations in 200 markets.

Download the Top Trends and Markets to Watch Reports

Chandan-Industrial-Cover

Industrial Trends and Markets to Watch

Retail Trends and Markets to Watch

Commerical Real Estate Trends and Markets to Watch

Apartment Trends and Markets to Watch

Office Trends and Markets to Watch

 

 

 

Miami, FL | 2014 Top CRE Markets to Watch : Industrial

Sperry Van Ness International Corporation’s (SVNIC) 2014 Top Markets to Watch Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2014. Today we are delving into the 2014 Top Industrial Markets to Watch.  Not the largest, or the most actively contested markets, the 2014 Industrial Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

TOP INDUSTRIAL MARKET TO WATCH : Miami, Florida

miamiAs a gateway to Latin America and the Caribbean, Miami’s port and intermodal hub is a center of growing demand for modern industrial space. Miami’s overall vacancy rate of 6 percent is down almost 100 basis points from a year ago, but with 1.5 million square feet added to the market in 2013 and a similar amount under construction, monthly rents have been flat at around 70 cents per square foot. The Port of Miami is investing $2 billion to service the largest container ships that will pass through the expanded Panama Canal when it reopens in late 2015. Improvements include dredging channels to a depth of 52 feet, installing massive dock cranes, and building a tunnel under Biscayne Bay to connect the port with nearby highways. Heated transaction volume has compressed cap rates on assets around the port to near 6 percent. Port Everglades, on the other hand, may present interesting opportunities for acquisition or development. Located 23 miles from Miami in Fort Lauderdale, Port Everglades handled approximately 1 million ten-foot equivalent units (TEUs) of containerized goods in 2013, trumping the Port of Miami’s volume by 50,000 and making Everglades the state’s busiest cargo port. The port is dredging its channels to a depth of 50 feet to handle larger ships, and an intermodal container transfer facility under construction will soon enable ships to unload cargo directly onto railcars.

To read more on Miami, and other top industrial markets, download the full version of the Top Industrial Markets to Watch report below. 

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisers with more than 180 locations in 200 markets.

Download the Top Trends and Markets to Watch Reports

Chandan-Industrial-Cover

Industrial Trends and Markets to Watch

Retail Trends and Markets to Watch

Commerical Real Estate Trends and Markets to Watch

Apartment Trends and Markets to Watch

Office Trends and Markets to Watch